The following information should be read in conjunction with (i) the financial statements of GridIron BioNutrients, Inc., a Nevada corporation (the "Company"), and development stage company, and the notes thereto appearing elsewhere in this Form 10-Q together with (ii) the more detailed business information and the August 31, 2019 audited financial statements and related notes included in the Company's Form 10-K, as amended (File No. 000-55852; the "Form 10-K"), as filed with the Securities and Exchange Commission on December 17, 2019. Statements in this section and elsewhere in this Form 10-Q that are not statements of historical or current fact constitute "forward-looking" statements





OVERVIEW

The Company was incorporated in the State of Nevada on July 31, 2014 and established a fiscal year end of August 31.





Going Concern

To date the Company has little operations or revenues and consequently has incurred recurring losses from operations. Minimal revenues are anticipated until we complete the financing we endeavor to obtain, as described in the Form 10-K, and implement our initial business plan. The ability of the Company to continue as a going concern is dependent on raising capital to fund our business plan and ultimately to attain profitable operations. Accordingly, these factors raise substantial doubt as to the Company's ability to continue as a going concern.

The Company plans to raise additional funds through debt or equity offerings. There is no guarantee that the Company will be able to raise any capital through this or any other offerings.

SIGNIFICANT ACCOUNTING POLICES

Please refer to Note 2 - Summary of Significant Accounting Policies in the accompanying Notes to the Consolidated Financial Statements.






         21

  Table of Contents




PLAN OF OPERATION

We have not yet generated or realized meaningful revenues from our business. In the next 12 months, we plan to identify business to whom we can license our brand name and sell our products.





Results of Operations

Three-Month Periods Ended November 30, 2019 and 2018

We recorded revenues $633 for the three months ended November 30, 2019, with the cost of such revenues being $3,434. We recorded revenues of $1,128 for the three months ended November 30, 2018, with the cost of such revenues being $30,063.

For the three months ended November 30, 2019, we incurred total operating expenses of $54,301, consisting of advertising expenses of $1,371, general and administrative expenses of $17,821, and professional fees of $35,109.

By comparison, for the three months ended November 30, 2018, we incurred total operating expenses of $162,663, consisting of advertising expenses of $393, consulting fees of $21,500, general and administrative expenses of $67,558, and professional fees of $73,212.

The decrease in operating expenses for the three months ended November 30, 2019, as compared to the three months ended November 30, 2018, was primarily attributable to $49,373, or 73.6%, reduction in general and administrative costs, and a $38,103, or 52%, reduction in professional fees, and a $21,500, or 100%, reduction in consulting fees.

For the three months ended November 30, 2019, we had a net loss of $269,849, while for the three months ended November 30, 2018, we incurred a net loss of $91,408.






         22

  Table of Contents

Liquidity and Capital Resources

At November 30, 2019, we had a cash balance of $41,446, and our working capital balance was $(257,675). We do not have sufficient cash on hand to complete our plan of operation for the next 12 months. We will need to raise funds to complete our plan of operation and fund our ongoing operational expenses for the next 12 months. Additional funding will likely come from equity financing from the sale of our common stock. If we are successful in completing an equity financing, existing shareholders will experience dilution of their interest in our Company. We do not have any financing arranged and we cannot provide investors with any assurance that we will be able to raise sufficient funding from the sale of our common stock to fund our development activities and ongoing operational expenses. In the absence of such financing, our business will likely fail. There are no assurances that we will be able to achieve further sales of our common stock or any other form of additional financing. If we are unable to achieve the financing necessary to continue our plan of operations, then we will not be able to continue our development to complete our plan of operation and our business will fail.

For the three months ended November 30, 2019, we had net cash used in operating activities of $103,529. Net cash of $126,000 was provided by financing activities for the three months ended November 30, 2019 from a third-party convertible notes payable.





Subsequent Events

None through date of this filing.

© Edgar Online, source Glimpses