The following information should be read in conjunction with (i) the financial
statements of Artisan Consumer Goods, Inc., a Nevada corporation (the
"Company"), and the notes thereto appearing elsewhere in this Form 10-Q together
with (ii) the more detailed business information and the June 30, 2020 audited
financial statements and related notes included in the Company's Form 10-K (File
No. 000-54838; the "Form 10-K"), as filed with the Securities and Exchange
Commission on December 16, 2020. 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 September 14, 2009, and
has established a fiscal year end of June 30.
Going Concern
To date the Company has little operations or revenues and consequently has
incurred recurring losses from operations. No 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.
CRITICAL ACCOUNTING POLICIES
Please refer to Note 2 - Summary of Significant Accounting Policies in the
accompanying Notes to the Financial Statements.
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PLAN OF OPERATION
Our plan of operation for the following twelve months is as follows:
Planned milestones for the first three months after filing of this Quarterly
Report on Form 10-Q
· Complete logo designs for our products;
· Apply for trademark protection for brand names, logos, and product names;
· Select food production facility;
· Review schedule and modify scope as required; and
· Identify and assess regulatory issues.
Planned milestones for between three and six months after filing of this
Quarterly Report on Form 10-Q
· Complete packaging designs for initial products;
· Test and refine recipes for product formulations;
· Complete margin analysis based on completed formulations;
· Obtain product UPC codes;
· Develop marketing content for online distribution;
· Apply to be Amazon partner;
· Evaluate additional online distribution partners;
· Review schedule and modify scope as required; and
· Identify and assess regulatory issues.
Planned milestones for between six and nine months after filing of this
Quarterly Report on Form 10-Q
· Complete initial batches of market-ready products;
· Start production manufacturing operations;
· Test and document order and fulfillment processes;
· Review schedule and modify scope as required; and
· Identify and assess regulatory issues.
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Planned milestones for between nine and twelve months after filing of this
Quarterly Report on Form 10-Q
· Test geo-targeted online advertising in initial geographies;
· Test social media promotion within targeted geographies to support product
sales;
· Review schedule and modify scope as required; and
· Identify and assess regulatory issues.
We must raise at least $87,300 to commence our plan of operation, described
above, and fund our ongoing operational expenses. We have no assurance that
future financing will materialize. If that financing is not available, we may be
unable to continue our operations. Management believes that if we are successful
in raising $87,300, we will be able to generate sales revenue within the
following twelve months thereof. However, if such financing is not available, we
could fail to satisfy our future cash requirements. We have no assurance that
future financing will materialize. Management believes that if subsequent
private placements are successful, we will be able to generate sales revenue
within the following twelve months thereof. However, additional equity financing
may not be available to us on acceptable terms or at all, and thus we could fail
to satisfy our future cash requirements.
If we are unsuccessful in raising at least $87,300 through a private placement,
we will then have to seek additional funds through debt financing, which would
be highly difficult for a new, development stage business to obtain. Therefore,
the Company is highly dependent upon the success of an anticipated private
placement offering and failure thereof would result in the Company having to
seek capital from other sources such as debt financing, which may not even be
available to the Company. However, if such financing were available, because we
are a development stage company with little in the way of operations to date, we
would likely have to pay additional costs associated with high risk loans and be
subject to an above market interest rate. If and when these funds are obtained,
management would evaluate the terms of such debt financing and determine whether
the business could sustain operations and growth and manage the debt load. If we
cannot raise additional proceeds via a private placement of our common stock or
secure debt financing we would be required to cease business operations and as a
result, investors in our common stock would lose all of their investment.
Results of Operations for the Three Months Ended September 30, 2020 and 2019
The Company had no revenues for the three and nine months ended September 30,
2020 and 2019.
For the three-month period ended September 30, 2020, we incurred total operating
expenses of $(19,006), consisting of a return to the Company of stock-based
compensation of $25,290, professional fees of $6,389, and a credit of general
and administrative expenses of $105. For the three-month period ended September
30, 2020, we incurred total operating expenses of $8,756, consisting of
stock-based compensation of $455, professional fees of $6,925, and general and
administrative expenses of $1,376.
Net income was $43,435 for the three months ended September 30, 2020, compared
to a net loss of $8,756 for the three months ended September 30, 2020. The
increase in net income was due primarily to a return to the Company of $25,290
in stock-based compensation.
Liquidity and Capital Resources
At September 30, 2020, we had a cash balance of $1,206 and total current
liabilities of 154,468. Our working capital balance at September 30, 2020, was
$(152,895). We do not have sufficient cash on hand to fund our ongoing
operational expenses at all. We will need to raise at least $87,300 to commence
our plan of operation and fund our ongoing operational expenses. Additional
funding will likely come from equity financing from the sale of our common stock
or a debt financing. 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 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
operations and our business will fail.
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As at September 30, 2020, our total assets were $1,573, consisting of $1,206 of
cash and $367 of inventory, consisting of our food products.
As at September 30, 2020, our current liabilities were $154,468 and
stockholders' deficiency was $(152,895).
Cash Flows from Operating Activities
We have not generated positive cash flows from operating activities. Net cash
used in operations was $4,203 and $0 for the three months ended September 30,
2020 and 2019, respectively.
Cash Flows from Financing Activities
For the three months ended September 30, 2020 and 2019, net cash flows provided
by financing activities was $0 and $10,000, respectively.
Subsequent Events
None through date of this filing.
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ARTISAN CONSUMER GOODS, INC. 
