The following discussion should be read in conjunction with our audited financial statements and notes thereto included herein. We caution readers regarding certain forward looking statements in the following discussion and elsewhere in this report and in any other statement made by, or on our behalf, whether or not in future filings with the Securities and Exchange Commission. Forward-looking statements are statements not based on historical information and which relate to future operations, strategies, financial results or other developments. Forward looking statements are necessarily based upon estimates and assumptions that are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control and many of which, with respect to future business decisions, are subject to change. These uncertainties and contingencies can affect actual results and could cause actual results to differ materially from those expressed in any forward looking statements made by, or our behalf. We disclaim any obligation to update forward-looking statements





Results of Operations

We recorded minimal revenues in the amount of $900 and $118 for the years ended August 31, 2021 and August 31, 2020, respectively and incurred cost of goods sold of $0 and $4 for the year ended August 31, 2021 and the year ended August 31, 2020, respectively.

The operating expenses were comprised of general and administrative expenses of $1,721,372 and stock based compensation of $595,824, for the fiscal year ended August 31, 2021 (compared to $680,471 for the fiscal year ended August 31, 2020), an increase of $1,648,776 in general and administrative expenses. The change is due to increased operating expenses associated with a concentration of resources in product development, engineering, marketing, reporting and administrative tasks post the acquisition of the Boatim platform as well as operating expenses associated with the new Spanish subsidiary, Boatim Europe. The $595,824 increase is stock based compensation, was attributable to an executive receiving common stock awards.






12

Other expenses for the year ended August 31, 2021, comprised amortization of debt discount in the amount of $617,934, in addition to a loss on derivative liability of $209,068 both of which are associated with our convertible note debt, offset by gain on foreign exchange of $27,129.

The net loss was $3,116,169 for the year ended August 31, 2021 (compared to August 31, 2020: $409,914), an increase of approximately 663% as compared to the last year.

Our total assets as of August 31, 2021 were $685,387 (August 31, 2020: $510,289). The increase in total assets is due to increased capitalized software costs of $251,477.

Our total current liabilities at August 31, 2021 were $2,467,379 which is comprised of $373,039 in accounts payable and accrued liabilities, $427,451 in payables to related parties, $33,333 in operating lease obligations, as well as $1,613,556 in convertible notes and a short term loan of $20,000 from an unrelated party. We also have non-current liabilities consisting of $22,410 in operating lease obligations at August 31, 2021. The current liabilities at August 31, 2020 were $1,499,045 which is comprised of $189,680 in accounts payable and accrued liabilities, $348,031 in payables to related parties, $141,276 in operating lease obligations, as well as $1,060,000 in convertible notes, offset by $595,350 of debt discount and $307,446 of derivative liability associated with our convertible notes. A short-term loan of $47,962 from an unrelated party was repaid in September 2020. We also have non-current liabilities consisting of $38,391 in operating lease obligations at August 31, 2020.

We currently anticipate our operating expenses (being legal and professional fees, IT cost and further website and software development and testing, sales, marketing and advertising, and other expenses) over the next 12 months will be approximately $1,500,000 to $2,000,000.

As of August 31, 2021, the Company had authorized 500,000,000 shares of common stock with a par value of $0.001 per share.

As of August 31, 2021, the Company had 51,780,838 (August 31, 2020: 50,500,011) shares of common stock issued and outstanding and there were no outstanding stock options or warrants. As of the date of this document, the Company has 51,780,838 shares of common stock issued and outstanding.

For the year ended August 31, 2021 we reported a net loss of $3,116,169 and an accumulated deficit of $3,913,475. As of August 31, 2021, we had cash of $69,827. The report of our independent registered public accounting firm on our financial statements for the year ended August 31, 2021 contains an explanatory paragraph regarding our ability to continue as a going concern based upon our minimal cash and no source of revenues which are insufficient to cover our operating costs. 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. There are no assurances we will be successful in our efforts to raise capital, develop a source of revenues, report profitable operations or to continue as a going concern, in which event investors would lose their entire investment in our company.

Liquidity and Capital Resources

At August 31, 2021, we had $69,827 in cash and there were outstanding liabilities of $2,489,789 (cash of $38,427 and liabilities of $1,537,436 on August 31, 2020, respectively). There was $1,444,364 in cash used in operations in 2021 ($509,192 net cash used in operating activities in 2020, respectively) and $333,243 used in investing activities (as well as $270,506 used in investing activities in 2020). There was $1,721,064 cash provided by financing activities in 2021 and $822,733 in cash provided by financing activities in 2020. This resulted in $31,400 change in net cash in 2021 and $22,736 in 2020.

Cayo Ventures GmbH has verbally agreed to continue to loan the company funds for operating expenses in a limited scenario, but it has no legal obligation to do so.






13

Cash Requirements /Future Financing

There is limited historical financial information about us upon which to base an evaluation of our performance. We have not meaningfully commenced business operations based upon the amount of revenue we have been able to generate. We are in start-up stage operations. We cannot guarantee we will be successful in our business operations. Our business is subject to risks inherent in the establishment of a new business enterprise, including limited capital resources and possible cost overruns due to price and cost increases in services and products.

We have no assurance that future financing will be available to us on acceptable terms. If financing is not available on satisfactory terms, we may be unable to continue, develop or expand our operations. Equity financing could result in additional dilution to existing shareholders.

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 that is material to investors, except as may be disclosed in the section "Recent Events".

Summary of significant accounting policies:

Refer to Note 2 of the financial statements in ITEM 8 below.





Contractual Obligations

We are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and are not required to provide the information under this item.

© Edgar Online, source Glimpses