MANAGEMENT DISCUSSION AND ANALYSIS

THE FOLLOWING DISCUSSION SHOULD BE READ IN CONJUNCTION WITH OUR AUDITED

CONSOLIDATED FINANCIAL STATEMENTS AND NOTES THERETO INCLUDED HEREIN.

THIS DISCUSSION CONTAINS FORWARD-LOOKING STATEMENTS, SUCH AS STATEMENTS RELATING TO OUR FINANCIAL CONDITION, RESULTS OF OPERATIONS, PLANS, OBJECTIVES, FUTURE PERFORMANCE AND BUSINESS OPERATIONS. THESE STATEMENTS RELATE TO EXPECTATIONS CONCERNING MATTERS THAT ARE NOT HISTORICAL FACTS. THESE FORWARD-LOOKING STATEMENTS REFLECT OUR CURRENT VIEWS AND EXPECTATIONS BASED LARGELY UPON THE INFORMATION CURRENTLY AVAILABLE TO US AND ARE SUBJECT TO INHERENT RISKS AND UNCERTAINTIES. ALTHOUGH WE BELIEVE OUR EXPECTATIONS ARE BASED ON REASONABLE ASSUMPTIONS, THEY ARE NOT GUARANTEES OF FUTURE PERFORMANCE AND THERE ARE A NUMBER OF IMPORTANT FACTORS THAT COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE EXPRESSED OR IMPLIED BY SUCH FORWARD-LOOKING STATEMENTS. BY MAKING THESE FORWARD-LOOKING STATEMENTS, WE DO NOT UNDERTAKE TO UPDATE THEM IN ANY MANNER EXCEPT AS MAY BE REQUIRED BY OUR DISCLOSURE OBLIGATIONS IN FILINGS WE MAKE WITH THE SECURITIES AND EXCHANGE COMMISSION UNDER THE FEDERAL SECURITIES LAWS. OUR ACTUAL RESULTS MAY DIFFER MATERIALLY FROM OUR FORWARD-LOOKING STATEMENTS.

THE INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM'S REPORT ON THE COMPANY'S FINANCIAL STATEMENTS AS OF DECEMBER 31, 2015 INCLUDES A "GOING CONCERN" EXPLANATORY PARAGRAPH THAT DESCRIBES SUBSTANTIAL DOUBT ABOUT THE COMPANY'S ABILITY TO CONTINUE AS A GOING CONCERN.

PLAN OF OPERATIONS

Auto Parts Division:

The auto parts business is a phenomena that must be well understood before plan of operation is discussed. Auto parts are bought or sold when there is a need for them. Reducing price or encouraging customers to "buy one and get one free" is not applicable in this line of business. Thus the list price of the parts are more or less firm and if they are priced/listed in line with the prices quoted by other competitors they do sell at the listed price. The only uncertain element like in pharmaceutical industry is that they are sold when needed but must be readily available


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when need emerges. These auto parts do not have any shelf life, these are neither subject to change in fashion nor are perishable and they do eventually sell.

Keeping the above fact in mind, the management has discovered that the greater the inventory than the greater is the probability that it would generate sales. An in-house analysis by management has revealed that approximately 25% of the inventory in hand sells on an annual basis. It was therefore imperative that the inventory be increased to MSRP cruising level of $5,000,000 to achieve a $1,250,000 + in sales which would thereby generate a cash surplus in net profits of the company. With the acquisition of the second facility, FFLO's inventory level of MSRP has increased to the desired level of over $5,000,000.00 against the book value of $1,778,824. It is thus anticipated that the annual sales would be over $1,000,000 during the year 2021.

FFLO has raised its bar to build inventory to MSRP of $10,000,000 and is actively seeking additional $1,000,000 funding to build inventory.

During the year 2020, there were enough automobiles available for dismantling and a greater number could have been purchased, but the company was not successful in finding skilled labor thus resulting in a slow-down of inventory build-up. It is taking more time to process than what could have been achieved if more skilled labor was available. Also due to COVID19 the availability of wrecked automobiles has diminished having resulted from less automobiles on the road, also people who have end of life automobiles restrained from inviting the collection people to come to them to pick up the vehicles.

Motors & Metal, Inc. - Progress discussed as under:

Having received the letter of intent from a bonafide buyer the Company began sourcing scrap metal for export and after nearly six month of vigorous efforts concluded that none of the existing processors were prepared to offer the shredded steel. The Company was already processing scrap metal but in very limited quantities which were not enough for export trade.

The management began to work on expanding its own scrap metal processing capabilities and upon getting a reconfirmation of zoning from the County Office, Motors & Metals, Inc., in January of 2020 received its license to operate as "Scrap Metal Processor". The management received several quotations from various equipment manufacturers and is in the process of negotiating purchase of machinery so that it is able to process the desired quantity of scrap metal for export.

Upon the news being made public, the Company has received from other qualified buyer abroad "expression of interest" to purchase scrap metal. The annual sales of scrap metal are expected to exceed Ten Million Dollars ($10,000,000). The Company hopes that it will be able to complete its expansion plan within next 12 months.

RESULTS OF OPERATIONS

FOR THE YEAR ENDED DECEMBER 31, 2020 COMPARED TO THE YEAR ENDED DECEMBER 31, 2019

During the year ended December 31, 2020, the Company recognized revenue of $411,694 from sales. During the year ended December 31, 2019, the Company recognized revenue of $420,538 from its operational activities. The decline is primarily due to slow demand due to COVID19.

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During the year ended December 31, 2020, the Company incurred a total of operational expenses of $393,254 which included a depreciation allowance of $54,583. During the year ended December 31, 2019, the Company incurred operational expenses of $430,604 including a depreciation allowance of $59,018. The decrease of appx. $37,354 was primarily a result of decrease in administrative expenses.

During the year ended December 31, 2020, the Company recognized a total gain of $1,000,347 on account of inventory valuation but did sustain an operating loss of $154,137 as compared to a net book loss of $121,810 during the year ended December 31, 2019. Now that the inventory has been built to the targeted level of MSRP of $5,000,000 approximately, it is expected that the sales for the year 2021 should exceed $1,000,000 thereby reducing the operating loss.

LIQUIDITY

At December 31, 2020, the Company has a total current assets of $3,662,186 consisting of $83,516 in cash, $202,669 in accounts receivable and $1,778,824 in inventories and work in progress at cost. At December 31, 2020, total current liabilities were $951,518 consisting of $9,829 in accounts payable and $1,689 from related parties and notes payable $940,000 and accrued interest of $0.

At December 31, 2019, the Company had total current assets of $1,608,123 consisting of $7,226 in cash, $107,091 in accounts receivable and $776,588 in inventories and work in progress. At December 31, 2019, total current liabilities were $22,030 consisting of $11,687 in accounts payable, notes payable to related party of $10,343 and accrued interest of $0.

SHORT TERM

On a short-term basis, the Company has generated marginal revenues sufficient to cover operations. For long term needs the Company will be dependent on receipt, if any, from the growth in sales.

CAPITAL RESOURCES

The Company's capitalization is 100,000,000 common shares with a par value of $0.0001 per share and 20,000,000 preferred stock, with a par value of $0.0001 per share.

NEED FOR ADDITIONAL FINANCING

The Company does not have capital sufficient to meet its expansion Capital needs. The Company will have to seek loans or equity placements to cover such cash needs.

No commitments to provide additional funds have been made by the Company's management or other stockholders. Accordingly, there can be no assurance that any additional funds will be available to the Company to allow it to cover the Company's expansion budget.

The Company has completed of a Private Placement Memorandum (PPM) under rule 506 (c) of the SEC Act of 1933 for a sum of Nineteen Million Five Hundred Thousand Dollars $19,500,000 against issuance of convertible preferred shares to augment its needs for expansion and acquisitions of existing, profitable Auto Parts companies in USA and Canada The management is in discussion with a few Investment Bankers, results are expected in due course of time. The Company or its Management does not guarantee if this PPM will be result in attracting subscriptions and that it will be successful.


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SIGNIFICANT ACCOUNTING POLICIES

REVENUE RECOGNITION

The Company recognizes revenue on arrangements in accordance with Securities and Exchange Commission Staff Accounting Bulletin Topic 13, REVENUE RECOGNITION and FASB ASC 605-15-25, REVENUE RECOGNITION. In all cases, revenue is recognized only when the price is fixed, or determinable, persuasive evidence of an arrangement exists, the merchandise is shipped and/or service is performed and collectability is reasonably assured. The Company reported $1,979,337 in revenues from inception to December 31, 2020.

EARNINGS PER SHARE

The Company has adopted ASC 260-10-50, EARNINGS PER SHARE, which provides for calculation of "basic" and "diluted" earnings per share. Basic earnings per share includes no dilution and is computed by dividing net income or loss available to common shareholders by the weighted average common shares outstanding for the period. Diluted earnings per share reflect the potential dilution of securities that could share in the earnings of an entity. Basic and diluted losses per share were the same at the reporting dates as there were no common stock equivalents outstanding at December 31, 2020 or December 31, 2019.

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