The following discussion and analysis should be read in conjunction with the
balance sheet as of June 30,2020 and December 31,2020 and the financial
statements for the six months period ended December 31, 2020 included herein.
The results shown herein are not necessarily indicative of the results to be
expected for any future periods.
This discussion contains forward-looking statements, based on current
expectations with respect to future events and financial performance and
operating results, which statements are subject to risks and uncertainties,
including but not limited to those discussed below and elsewhere in this
Prospectus that could cause actual results to differ from the results
contemplated by this forward-looking statement. We urge you to carefully
consider the information set forth in our S1form under the heading "Note
Regarding Forward Looking Statements" and "Risk Factors".
We are an emerging growth company incorporated in the State of Nevada on June
23, 2017. The United Express Inc. was developed to provide a comprehensive
management service for long and short distance logistics for clients in the
Company's target market area. The Company will offer its clients the
transportation ability to all of their hauling needs through one business which
will provide them with the ability to manage their shipments in a cost and time
effective manner.
Forward-Looking Statements
The Securities and Exchange Commission ("SEC") encourages companies to disclose
forward-looking information so that investors can better understand future
prospects and make informed investment decisions. Our registration statement
contains these types of statements. Words such as "may," "expect," "believe,"
"anticipate," "estimate," "project," or "continue" or comparable terminology
used in connection with any discussion of future operating results or financial
performance identify forward-looking statements. You are cautioned not to place
undue reliance on the forward-looking statements, which speak only as of the
date of this prospectus. All forward-looking statements reflect our present
expectation of future events and are subject to a number of important factors
and uncertainties that could cause actual results to differ materially from
those described in the forward-looking statements. The factors listed in the
"Risk Factors" section in our S1 form, as well as any cautionary language in
this prospectus, provide examples of these risks and uncertainties. The safe
harbor for forward-looking statements is not applicable to this offering
pursuant to Section 27A of the Securities Act of 1933.
Business Overview
We are an Emerging growth company with strong revenue generating operations. We
were formed on June 23, 2017 and have more than three years of business
experience.
The United Express intends to operate as a general company of transportation and
delivery of merchandise, household goods, and other items for companies and
individuals across the United State. As such, it is difficult to determine the
average customer of the Company as the business will have the licensure and the
ability to effectively arrange for the transportation any type of merchandise.
Management anticipates that the business will receive orders for service from
companies seeking to move merchandise, as well as, people relocating to
different areas of the target regional market area. A primary concern for the
Company is its ability to quickly respond to customer request, give affordable
price for the services, and carry the full responsibility from pick up to drop
off. In this quarter, the price of oil and its associated refined energy
products has been within a reasonable, steady range. Lack of major volatile in
oil prices has caused the freight and logistic industries costs to be on a
straight level during last 3 months. In the event of an increase in the price of
fuel, we will also reasonably increase prices (at a standardized rate of markup)
to ensure the profitability of the business.
Our other activities are providing dispatch services for the other companies. We
working with CVK Express and doing
dispatch service for them.
Also, in second quarter we began working with ROYAL REALTY ENTERPRISE, INC to
purchase from them used home appliances and sell it to appliance companies for
further installation.
For the 3 months ended December 31, 2020 our business activities have focused on
dispatch service, used
appliances service and logistics.
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As of December 31,2020, mostly we generated income from CVK Express LLC.
$146,500 for dispatch, $22,150 from companies for logistic service and 219,370
from companies who bought from us used appliances.
Our three months revenues for the period ended December 31,2020 was $388,020.
We also cooperate with private people and companies when they ask about
transportation service, up in coming move, relocation, short terms storage and
other's needs.
We also plan to deliver cargo through others transportation providers if we get
more delivery orders than can afford. In this case here is our position as
intermediary company.
Our fees are count based on our expenses, size and type of shipment, distance,
route, gas price and other customer needs.
For the six months period ended December 31,2020, we
• developed our business plan;
• selected business partners;
• signed agreements with customers;
• found the cargo dealers;
• found used appliances customers;
• organized short-term storage;
• chose dispatcher providers;
• created a list of potential customers and their requirements;
• found service company for van maintenance and repairs;
• have chosen the transfer agent company: Empire Stock Transfer, Inc.
• chose optimal routes of traffic and provide delivery for the retail stores;
• have chosen used home appliances seller.
Our revenues are not concentrated in a few customers anymore and if should one
or more of them decrease their orders or cease to use our services, it does not
affect our revenues as a year ago.
Our revenue for the 3 months ended December 31, 2020 was $388,020. It is about
five times more than in similar period year ago. Our revenue for the 3 months
2019 was $80,070
Liquidity
At December 31, 2020, we had $12,252 in cash for our operations and $20,000 in
capital. For the period ended December 31,2019 we had 32,783 in cash for our
operations. We will attempt to fund from our future operations, which may be
insufficient to fund such amounts. There is no assurance our estimates of these
costs are accurate.
Capital resources
We have the fixed assets on our balance Mercedes Sprinter as of December 31,
2020. Total stockholders' equity $32,252.
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Results of Operations for the six months period ended December 31, 2020 and for
the six months period ended December 31, 2019
As an emerging growth company, we have received $496,470 operating revenues for
the six months period ended December 31,2020 and 126,170 for the six months
period ended December 31,2019. Recorded revenues were generated from customers'
payments. The Company is currently devoting substantially of its present efforts
to customer network and establishing the dispatch, transportation and used
appliances business.
For the six months period ended December 31, 2020 our revenue was generated from
our existing and new customers for the transportation, dispatch and used
appliances service. Our cash balance was $12,252.
For this period, we had Logistic and Dispatcher Service Expenses $253,723 and
used appliances Expenses $205,800. Also, for this period, we had $20,920 general
and administration expense, $6,500 Expenses related OTC Market requirements. Our
net income from operations was $ 9,527 in compare with our net income of $26,344
in similar period year ago.
For the six months period ended December 31, 2019 we had Logistic and Dispatcher
Service Expenses $39,996 and Expenses for Rental Equipment $14,000. Also, for
this period, we had $26,795 general and administration expense, $19,035
transportation and Broker Expenses. Our net income from operations was $ 25,978
in compare with our loss $395 in similar period year ago.
Our cash balances were not sufficient to fund our limited levels of operations
for any period of time without further revenue or proceeds. During start up
period, our operations will be limited due to the limited amount of funds on
hand. At the present time, we are working to raise additional cash, increase
the activities and generate more revenue. If we unable to raise additional
cash, we will either have to suspend operations until we do raise the cash, or
cease operations entirely.
Off Balance Sheet Arrangements
None
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