VMRI Valmie Res Inc (CE)

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

As used in this quarterly report, the terms “we”, “us” and “our” mean Valmie Resources, Inc., unless otherwise indicated.

Forward-Looking Statements

This quarterly report contains forward-looking statements. All statements other than statements of historical fact are “forward-looking statements”, including any projections of earnings, revenues or other financial items; any statements of the plans, strategies and objectives of management for future operations; any statements concerning proposed new products, services or developments; any statements regarding future economic conditions or performance; statements of belief; and any statement of assumptions underlying any of the foregoing. Such forward-looking statements are subject to inherent risks and uncertainties, and actual results could differ materially from those anticipated by any forward-looking statements.

These forward-looking statements involve significant risks and uncertainties, including, but not limited to, the following: competition, promotional costs, and risk of declining revenues. Our actual results could differ materially from those anticipated in such forward-looking statements as a result of a number of factors. These forward-looking statements are made as of the date of this filing, and we assume no obligation to update such forward-looking statements.

The following discussion of our financial condition and results of operations is based upon our financial statements which have been prepared in conformity with accounting principles generally accepted in the United States. It should be read in conjunction with our financial statements, including the notes thereto, that appear elsewhere in this quarterly report. The discussion of results, causes and trends should not be construed to imply any conclusion that these results or trends will necessarily continue into the future.

Overview

We were incorporated pursuant to the laws of the State of Nevada on August 26, 2011. We are an exploration stage company and have not yet generated any revenues. To date, our efforts have focused primarily on the development and implementation of our business plan.

Results of Operations

Three Months ended August 31, 2013 and 2012 and August 26, 2011 (Inception) to August 31, 2013

Revenues

We have not generated any revenues since our inception. We anticipate that we will incur substantial losses for the foreseeable future and our ability to generate any revenues during the next 12 months continues to be uncertain.

Expenses

During the three months ended August 31, 2013, we incurred $10,664 in operating expenses, including $7,990 in professional fees, $2,074 in general and administrative expenses and $600 in transfer agent fees. During the same period in 2012, we incurred $18,338 in operating expenses, including $10,125 in professional fees, $3,213 in general and administrative expenses and $5,000 in transfer agent fees. The $7,674 decrease in our operating expenses between the two periods was therefore attributable to decreases in each of our expense categories, and notably, the $4,400 reduction in our transfer agent fees. From our inception on August 26, 2011 to August 31, 2013 , we incurred $140,629 in operating expenses.

Net Loss

During the three months ended August 31, 2013, we incurred a net loss of $10,664, whereas we incurred a net loss of $18,338 during the same period in 2012. Our basic and diluted net loss per share during each of those periods was $0.00. From our inception on August 26, 2011 to August 31, 2013 , we incurred a net loss of $140,629.

Nine Months ended August 31, 2013 and 2012

Expenses

During the nine months ended August 31, 2013, we incurred $42,969 in operating expenses, including $20,814 in professional fees, $8,482 in general and administrative expenses and $13,673 in transfer agent fees. During the same period in 2012, we incurred $39,632 in operating expenses, including $19,811 in professional fees, $8,482 in general and administrative expenses and $15,000 in transfer agent fees. The $3,337 increase in our operating expenses between the two periods was therefore primarily due to the $3,661 increase in our general and administrative expenses as offset by the fluctuations in our other two expense categories.

Net Loss

During the nine months ended August 31, 2013, we incurred a net loss of $42,969, whereas we incurred a net loss of $39,632 during the same period in 2012. Our basic and diluted loss per share during each of those periods was $0.01.

Liquidity and Capital Resources

As of August 31, 2013 , we had $113 in cash and cash equivalents, $113 in total assets, $91,342 in total liabilities, a working capital deficit of $91,229 and an accumulated deficit of $140,629.

During the nine months ended August 31, 2013, we used $41,713 in net cash on operating activities and our accounts payable increased by $1,256 before being paid in full by a related party. During the same period in 2012 we used $24,021 in net cash on operating activities, our accounts payable increased by $2,391 and our prepaid expenses increased by $13,220. The majority of our spending on operating activities for the nine months ended August 31, 2013 was attributable to our net loss as described above and was associated with our carrying out our reporting obligations under applicable securities laws.

We did not incur any expenditures on investing activities during the nine months ended August 31, 2013 or 2012.

During the nine months ended August 31, 2013, we received $37,700 from financing activities, all of which was in the form of proceeds from a related party. During same period in 2012, we received $16,144 from financing activities, including $20,600 in proceeds from a related party as offset by $4,456 in payments we made to a related party.

During the nine months ended August 31, 2013 our cash position decreased by $4,013, from $4,126 to $113. Our plans for the next 12 months are uncertain due to our current financial condition; however, we intend to raise additional funds through public or private placement offerings . If we are unsuccessful in raising enough money through such efforts, we may review other financing possibilities such as bank loans. At this time we do not have a commitment from any broker-dealer to provide us with financing. There is no assurance that any financing will be available to us or if available, on terms that will be acceptable to us. In the absence of such financing, we may be forced to cease or significantly curtail our operations.

Going Concern

Our financial statements have been prepared on a going concern basis, which contemplates, among other things, that we will continue to realize our assets and satisfy our liabilities in the normal course of business . As at August 31, 2013, we had a working capital deficit of $91,229 and an accumulated deficit of $140,629. We intend to fund our operations through equity financing arrangements, which may be insufficient to fund our capital expenditures, working capital and other cash requirements for the next 12 months.

Our ability to emerge from the exploration stage is dependent upon, among other things, obtaining additional financing to continue our operations, explore and develop our properties and the discovery, development and sale of ore reserves. These factors, among others, raise substantial doubt about our ability to continue as a going concern. Our financial statements do not include any adjustments that might result from the outcome of this uncertainty.

Off-Balance Sheet Arrangements

We do not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources.