The following information should be read in conjunction with (i) the financial
statements of Fovea Jewelry Holdings, Ltd., a Wyoming corporation (the
"Company"), and the notes thereto appearing elsewhere in this Form 10-Q together
with (ii) the more detailed business information and the December 31, 2021
audited financial statements and related notes included in the Company's Annual
Report on Form 10-K, as filed with the Securities and Exchange Commission on
April 29, 2022. 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 is incorporated in the State of Wyoming as a result of a
domestication from the State of Nevada on March 4, 2019 and has a fiscal year
end of December 31.
CRITICAL ACCOUNTING POLICIES
PLAN OF OPERATION
Our plan of operations over the next 12 month period is to continue developing
our website to have a fully functioning online store and sell our diamond
products.
Results of Operations
Comparison of the three months ended March 31, 2022 and March 31, 2021
The following table sets forth certain operational data for the three months
ended March 31, 2022, compared to the three months ended March 31, 2021:
Three months ended
March 31,
2022 2021
Revenue $ 1,217 $ 162,887
Cost of revenue (952 ) (81,682 )
Gross profit 265 81,205
Operating Expenses (1,922 ) (8,509 )
Income from operations (1,657 ) 72,696
Income tax expense 295 (5,838 )
NET (LOSS) INCOME $ (1,362 ) $ 66,858
Revenue. We generated revenues of $1,217 and $162,887 for the three months ended
March 31, 2022 and 2021, respectively. The decrease in revenue is attributable
to the decrease in market demand from the Omicron outbreak in the first fiscal
quarter of 2022.
Cost of Revenue. Cost of revenue for the three months ended March 31, 2022, was
$952, as compared to cost of revenue of $81,682 for the same period ended March
31, 2021. Cost of revenue decreased primarily as a result of the decrease in
market demand.
Gross Profit. We achieved a gross profit of $265 and $81,205 for the three
months ended March 31, 2022 and 2021, respectively. The decrease in gross profit
is primarily attributable to the decreasing market demand.
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Operating Expenses. We incurred G&A expenses of $1,922 and $8,509 for the three
months ended March 31, 2022, and 2021, respectively. The increase in G&A is
primarily attributable to increase professional, administrative and other fees.
Income Tax Expense. Our income tax expenses for the three months ended March 31,
2022 and 2021 were $295 and $5,838, respectively.
Net (Loss) Income. During the three months ended March 31, 2022, we incurred a
net income of $1,362, as compared to net income of $66,858 for the same period
ended March 31, 2021.
Liquidity and Capital Resources
As of March 31, 2022, we had cash and cash equivalents of $1,735. As of December
31, 2021, we had cash and cash equivalents of $1,476.
Three Months Ended March 31,
2022 2021
Net cash provided by operating activities $ 3,757 $ 68,473
Net cash used in investing activities $
- $ -
Net cash provided by financing activities $ - $ -
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Net Cash Provided By Operating Activities.
For the three months ended March 31, 2022, net cash provided by operating
activities was $3,757 which consisted primarily of a net loss of $1,362,
depreciation of property, plant and equipment of $1,922, an increase in
inventories of $3,099 and offset by an increase in deferred tax liabilities of
$331.
For the three months ended March 31, 2021, net cash provided by operating
activities was $68,473, which consisted primarily of a net income of $66,858,
depreciation of property, plant and equipment of $1,934 and a decrease in
deferred tax liabilities of $319.
Net Cash Used In Investing Activities.
For the three months ended March 31, 2022 and 2021, net cash used in investing
activities was $0.
Net Cash Provided By Financing Activities.
For the three months ended March 31, 2022, net cash provided by financing
activities was $0.
Off-Balance Sheet Arrangements
The Company has no off-balance sheet arrangements that have or are reasonably
likely to have a current or future effect on the financial condition, changes in
financial condition, revenues or expenses, results of operations, liquidity,
capital expenditures or capital resources that is material to stockholders.
Subsequent Events
None through the date of this filing.
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