The following discussion should be read in conjunction with the Company's
unaudited consolidated financial statements and notes thereto included in Item 1
of this report and is qualified in its entirety by the foregoing.
Forward Looking Statements
Certain statements in this report, including statements of our expectations,
intentions, plans and beliefs, including those contained in or implied by
"Management's Discussion and Analysis of Financial Condition and Results of
Operations" and the Notes to Consolidated Financial Statements, are
"forward-looking statements", within the meaning of Section 21E of the
Securities Exchange Act of 1934, as amended (the "Exchange Act"), that are
subject to certain events, risks and uncertainties that may be outside our
control. The words "believe", "expect", "anticipate", "optimistic", "intend",
"will", and similar expressions identify forward-looking statements. Readers are
cautioned not to place undue reliance on these forward-looking statements, which
speak only as of the date on which they are made. We undertake no obligation to
update or revise any forward-looking statements. These forward-looking
statements include statements of management's plans and objectives for our
future operations and statements of future economic performance, information
regarding our expansion and possible results from expansion, our expected
growth, our capital budget and future capital requirements, the availability of
funds and our ability to meet future capital needs, and the assumptions
described in this report underlying such forward-looking statements. Actual
results and developments could differ materially from those expressed in or
implied by such statements due to a number of factors, including, without
limitation, those described in the context of such forward-looking statements,
our expansion and acquisition strategy, our ability to achieve operating
efficiencies, our ability to successfully develop and market new websites in the
greater Asian markets, the strength and financial resources of our competitors,
our ability to raise sufficient capital in order to effectuate our business
plan, our ability to find and retain skilled personnel and key executives, the
political and economic climate in which we conduct operations and the risk
factors described from time to time in our other documents and reports filed
with the Securities and Exchange Commission (the "Commission").
Overview
Mi1 Global Telco., Inc. ("the Company"), formerly known as Domain Extremes Inc.,
was incorporated in the State of Nevada in January 2006 and is a development
stage company. Our business was to develop and operate Internet websites and
applications on mobile platforms. We earned revenues through advertisements on
these websites and applications. Our original goal was to become a major network
of consumer-based websites and applications targeting viewers in the Hong Kong
and Greater China with contents on travel, food, entertainment, activities and
city life. We launched the website www.drinkeat.com, which provides reviews of
restaurants in Hong Kong.
We are a controlled corporation with the substantial majority of our shares held
by Mi1 Global Limited ("Mi1"), a company registered in the Republic of Vanuatu.
Mi1 acquired a 51% stake in our company in February 2016. As a result, there can
be no assurance that our business and/or our strategy will not change over time
as a result of Mi1's interest.
On May 1, 2017, the Company filed a certificate of amendment to its articles of
incorporation with the Secretary of State of the State of Nevada changing the
Company's name from Domain Extremes Inc. to Mi1 Global Telco., Inc. and the
authorized shares of common stock, par value $0.001, from 200,000,000 shares to
1,200,000,000 shares. The name change became effective with FINRA on July 19,
2017.
Beginning on July 19, 2017, the Company's shares of common stock began trading
on the OTC Pink Marketplace under the symbol "MIGT" to reflect the Company's new
name.
13
On August 7, 2017, the Company filed a certificate of change with the Secretary
of State of Nevada to effectuate a reverse stock split (the "Stock Split") of
its issued and outstanding shares of common stock on a 1-for-10,000 basis. The
number of its authorized shares of common stock will remain at 1,200,000,000
shares, par value $0.001. The Stock Split became effective with FINRA on October
24, 2017 (the "Effective Date"). As of that date, every 10,000 shares of issued
and outstanding common stock were converted into one share of common stock. No
fractional shares were issued in connection with the Stock Split. Instead, any
fractional shares were rounded up to the next whole share and a holder of record
of old common stock on the Effective Date who would otherwise be entitled to a
fraction of a share were, in lieu thereof, issued one whole share.
On May 25, 2018, the Company terminated the website www.drinkeat.com and is
exploring other business opportunities in Asia.
Results of Operations for the Three and Six Months Ended June 30, 2019 and 2018
Net Sales
We generated revenues of $nil for the three and six months, respectively, ended
June 30, 2019 and 2018. The lack of revenue was mainly due to the decrease of
advertisers. Our principal source of revenues is from advertising banners on our
websites. We also intend to generate future revenues from advertising and user
fees related to our mobile phone applications.
Net Income (Loss)
We have incurred operating expenses and net losses of $6,953 and $11,649 for the
three and six months, respectively, ended June 30, 2019 and $7,606 and $23,683
for the three and six months, respectively, ended June 30, 2018, principally due
to a decrease in our administrative expenses as discuss below.
We incurred general, administrative and operating expenses of $853 and $949 for
the three and six months, respectively, ended June 30, 2019 and $1,006 and
$2,733 for the three and six months, respectively, ended June 30, 2018.
We incurred professional fees of $6,100 and $10,700 for the three and six
months, respectively, ended June 30, 2019 and $6,600 and $20,950 for the three
and six months, respectively, ended June 30, 2018.
Income Taxes
Due to our lack of revenues, we have not incurred any tax obligations for the
three and six months ended June 30, 2019 and 2018. However, we would anticipate
that income tax obligations will arise as we begin to generate significant
revenue in the future.
Liquidity and Capital Resources
As shown in the accompanying financial statements, the Company had an
accumulated loss of $533,270 as of June 30, 2019 compared to the accumulated
loss of $521,621 as of December 31, 2018. There was a working capital deficit of
$186,111 as of June 30, 2019 and $174,462 as of December 31, 2018. The increase
of $11,649 was mainly due to the operating loss for the six months..
At June 30, 2019, we had cash and cash equivalents of $0, compared to $1 at
December 31, 2018. The Company's operations were funded by the directors and the
Company did not have cash in its bank accounts.
We have limited operating capital. We expect that our current capital and our
other existing resources will be sufficient only to provide a limited amount of
working capital, and the revenues, if any, generated from our business
operations alone may not be sufficient to fund our operations or planned growth.
We will likely require additional capital to continue to operate our business,
and to further expand our business.
14
The Company is working to reduce the expenses and so we expect our cash flow
needs over the next 12 months through June 2020 to be approximately $66,000.
However, this amount may be materially increased if market conditions are
favorable for a more rapid expansion of our business model or if we adjust our
model to exploit strategic acquisition opportunities. In addition, we may
require additional cash flow to support our public company reporting
requirements in the United States. Although our average monthly expenditures to
date have averaged around $2,000, we expect this amount to increase
exponentially as our business expands. To date, we have been financed
principally by our directors; however, we expect to secure third party financing
or bank loans as necessary until we secure sufficient revenues, principally from
advertisers on our websites, to sustain our ongoing operations.
Sources of additional capital through various financing transactions or
arrangements with third parties may include equity or debt financing, bank loans
or revolving credit facilities. We may not be successful in locating suitable
financing transactions in the time period required or at all, and we may not
obtain the capital we require by other means. Our inability to raise additional
funds when required may have a negative impact on our operations, business
development and financial results.
Off-Balance Sheet Arrangements
As of June 30, 2019, we did not have any off-balance sheet arrangements.
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MI1 GLOBAL TELCO INC 
