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2. Management’s Discussion and Analysis of Financial Conditions and Results of Operations.
Forward
Looking Statements
This
quarterly report contains forward-looking statements that involve risks and uncertainties. We use words such as
anticipate, believe, plan, expect, future, intend and similar expressions to identify such forward-looking statements. You should not
place too much reliance on these forward-looking statements. Our actual results are likely to differ materially
from those anticipated in these forward-looking statements for many reasons, including the risks faced by us
described in this section.
Background
We
were incorporated on November 18, 2020 under the laws of the State of Wyoming.
We
intend to complete the development of and operate a ride-hailing and food delivery computer and mobile device application known as “WarpSpeedTaxi”.
A ride-hailing service, also known as app-taxi, e-taxi, or a mobility service provider, is a service that, via websites and mobile apps,
matches passengers with drivers of vehicles for hire that are not licensed taxi drivers. The computer application that we are developing
is intended to provide travelers with convenient door-to-door transport that leverages smart mobility platforms to connect drivers with
passengers and lets drivers use their personal vehicles. Ride-hailing, like a traditional taxi service, facilitates drivers providing
rides to customers for a fee. However, ride-hailing offers additional capabilities, such as efficient pricing tools, matching platforms,
rating systems, and food delivery.
We
were originally incorporated as a subsidiary of Cyber Apps World, Inc. (“Cyber Apps”), a reporting company, and entered into
an agreement dated December 20, 2020 to acquire the WarpSpeedTaxi application in its current phase of development from Limitless Projects
Inc. (“Limitless”), a private Wyoming corporation, for total consideration of $300,000 payable in stages. Our acquisition
of the application was to include a 100% interest in all software comprising the application, as well as the corresponding website domain,
content, and all incorporated technology. We would also jointly own the operational data and databases relating to the application with
the vendor.
On
January 19, 2022, we entered into an agreement whereby we terminated this asset purchase and sale agreement with Limitless due to our
inability to make a required payment pursuant to that agreement.
Pursuant
to the terms of the termination agreement, Limitless has reimbursed us the $10,000 cash payment that we made to it upon the execution
of the original agreement. Additionally, our directors at the time, who were also the directors of Cyber Apps, resigned and appointed
Daniel Okelo, the president of Limitless, in their place. Cyber Apps also transferred the 115,000,000 shares of common stock in our capital
that it owned to Limitless for consideration of $14,100.
We
anticipate that our WarpSpeedTaxi application will allow customers to hire a standard and luxury motor vehicles via a smartphone or personal
computer for both one-way and round-trips with the price based on the distance travelled and the current level of demand for vehicles.
In addition to transporting passengers, the application may also be used for deliveries of goods from restaurants, grocery stores, and
other businesses that typically utilize local vehicle courier services.
Customers
will use the application to request a ride or the delivery of goods. Drivers that we recruit and approve, through confirmation of no
criminal record, a clean driving history, and access to a suitable insured vehicle, will act as independent contractors and set their
own work hours. They will connect with customers via our application, pick up customers or goods to be delivered in accordance with the
customer’s request, and then drive the customers or goods to their destination. Customers will pay for the transportation through
the application by way of credit card. Drivers will receive payments for each ride or delivery they complete via a weekly direct deposit
to their bank accounts.
When
a customer uses the WarpSpeedTaxi application for ride-hailing, we will charge the customer a flat fee of approximately $2.00 for each
ride plus an amount for each mile that the customer travels. The amount for each mile will vary depending on the city in which the customer
is located. It will be higher in more densely populated cities where traffic moves relatively slowly and lower in less densely population
cities will less traffic congestion. Additionally, we will charge customers an additional premium during busy times when customer demand
exceeds the number of available drivers. This increase in pricing is intended to incentivize drivers to work during peak demand times
since they will receive greater compensation. In order to encourage drivers to work an independent contractor for us, we will initially
retain 15% of all revenue that a customer pays for a ride with the remaining 85% compensating the driver for his or her time and vehicle
expenses. Drivers will also retain 100% of all tips that customers provide them. Over time, when we have established a market for our
services, we may adjust this percentage so that we retain a greater percentage of revenue.
When
a restaurant uses the food delivery service feature of our WarpSpeedTaxi application, we will charge restaurants between 5% and 15% of
their order revenue, subject to a set minimum amount, depending on the amount of business that we receive from delivery orders of their
food through our application. From these proceeds, we will pay our drivers a base fee for deliveries that depend on the distance that
they must travel to pick up the food and deliver it to the customer. In addition, the driver will retain any tips that the customer provides.
We
are currently in the beta testing phase of the WarpSpeedTaxi application, which is being conducted in Ahmedabad, India
Results
of Operations for the three months and six months Ended January 31, 2022
Our
net loss for the three and six-month period ended January 31, 2022 was $72,977 and $108,316, respectively, which consisted entirely of
general and administrative fees. We did not generate any revenue during either three- or six-month period in fiscal 2021.
LIQUIDITY
AND CAPITAL RESOURCES
As
of January 31, 2022, our current assets were $82,507 compared to $52,194 on July 31, 2021. The increase in current assets in the current
fiscal year is due to subscription proceeds that we generated through our sale of common stock pursuant to our registration statement
on Form S-1, as amended.
As
of January 31, 2022, our current liabilities were $16,240 compared to $81,593 on July 31, 2021. Current liabilities on January 31, 2022
were comprised entirely of accounts payable and accrued liabilities. Current liabilities decreased in the second quarter of the 2022
fiscal year as compared to the July 31, 2021 year end because we were able to pay off debt with proceeds from the sale of our shares.
We
expect we will require additional capital to meet our long-term operating requirements. We expect to raise additional capital through,
among other methods, the sale of equity or debt securities.
Cash
Flows from Operating Activities
We
have not generated positive cash flows from operating activities. For the six-month period ended January 31, 2022, net cash flows used
in operating activities were $403,669 consisting of a net loss of $108,316, plus prepayments and deposits of $20,000, payments on our
accounts payable and accrued liabilities of $65,353, and the cancellation of our note payable of $250,000.
Cash
Flows from Investing Activities
For
the six-month period ended January 31, 2022, our cash flows used in investing activities were $11,017, which consisted of the software
development costs relating to the WarpSpeed Taxi computer application.
Cash
Flows from Financing Activities
We
have financed our operations from the issuance of our shares of common stock. Net cash flows generated from financing activities were
$465,000 in the six-month period ended January 31, 2022 relating to our sale of 10,200,000 shares of common stock at a price of $0.02
pursuant to our registration statement on Form S-1, as amended.
OFF-BALANCE
SHEET ARRANGEMENTS
As
of the date of this report, 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 that are material to investors.
GOING
CONCERN
The
independent auditors’ report accompanying our July 31, 2021 financial statements contained an explanatory paragraph expressing
substantial doubt about our ability to continue as a going concern. The financial statements have been prepared “assuming that
we will continue as a going concern,” which contemplates that we will realize our assets and satisfy our liabilities and commitments
in the ordinary course of business.
