The following summary of our results of operations should be read in conjunction
with our financial statements for the three months and nine months ended March
31, 2020 and 2019, which are included herein.
Our operating results for three months ended March 31, 2020 and 2019, and the
changes between those periods for the respective items are summarized as
follows:
Three months ended
March 31,
2020 2019 Change %
Sales $ - $ - $ - -
Cost of Goods Sold 32 - 32 -
Gross Profit (32 ) - (32 ) -
Operating expenses 183,273 371,975 (188,702 ) (51%)
Other Expense 52,635 35,513 17,122 48 %
Net loss $ (235,940 ) $ (407,488 ) $ 171,548 (42%)
-
Other Comprehensive Income (Loss): $ 107,764 $ (23,105 ) $ 130,869 (566%)
-
Comprehensive loss $ (128,176 ) $ (430,593 ) $ 302,417 (70%)
The Company had no revenues and incurred gross loss of $32 from the River Sand
Project during the three months ended March 31, 2020. The Company did not
recognize any revenues for the three months ended March 31, 2020.
Our financial statements reported a net loss of $235,940 for the three months
ended March 31, 2020 compared to a net loss of $407,488 for the three months
ended March 31, 2019. Our losses have decreased, primarily as a result of a
decrease in operating expenses of $188,702. The decrease in operating expenses
was primarily the result of a decrease in management fees. During the three
months ended March 31, 2019, we incurred management fees for personnel
compensation cost to a related party of $192,953.
Other expense increased to $52,635 for the three months ended March 31, 2020,
compared to $35,513 for the three months ended March 31, 2019. Other expense
related primarily to interest expense imputed for our non-interest bearing
advances from related parties. We expect interest expense to increase in future
periods until such time as we are able to generate profitable operations and
begin to repay our advances from our directors and entities related to our
directors.
Should we be successful in our efforts to raise additional capital and are able
to successfully close one or more of our outstanding offers to purchase mining
and explorations rights and thus begin exploration and mining operations, we
expect that our expenses to increase substantially.
Our operating results for nine months ended March 31, 2020 and 2019, and the
changes between those periods for the respective items are summarized as
follows:
Nine months ended
March 31,
2020 2019 Change %
Sales $ 5,043 $ - $ 5,043 -
Cost of Goods Sold 6,107 - 6,107 -
Gross Profit (Loss) (1,064 ) - (1,064 ) -
Operating expenses 708,440 585,804 122,636 21 %
Other Expense 158,156 100,139 58,017 58 %
Net loss $ (867,660 ) $ (685,943 ) $ (181,717 ) 26 %
-
Other Comprehensive Income (Loss): $ 83,412 $ 22,387 $ 61,025 273 %
-
Comprehensive loss $ (784,248 ) $ (663,556 ) $ (120,692 ) 18 %
The Company recognized revenues of $5,043 and incurred gross loss of $1,064 from
the sales of minded sand from the River Sand Project during the nine months
ended March 31, 2020. The Company did not recognize any revenues for the nine
months ended March 31, 2020.
Our financial statements reported a net loss of $867,660 for the nine months
ended March 31, 2020 compared to a net loss of $685,943 for the nine months
ended March 31, 2019. Our losses have increased, primarily as a result of an
increase in operating expenses of $122,636. The increase in operating expenses
was primarily the result of an increase in salaries, outsource and
administrative service, amortization of concession acquisition cost related to
our new river sand project and depreciation expense.
Other expense increased to $158,156 for the nine months ended March 31, 2020,
compared to $100,139 for the nine months ended March 31, 2019. Other expense
related primarily to interest expense imputed for our non-interest bearing
advances from related parties. We expect interest expense to increase in future
periods until such time as we are able to generate profitable operations and
begin to repay our advances from our directors and entities related to our
directors.
Should we be successful in our efforts to raise additional capital and are able
to successfully close one or more of our outstanding offers to purchase mining
and explorations rights and thus begin exploration and mining operations, we
expect that our expenses to increase substantially.
17
Table of Contents
Liquidity and Financial Condition
Working Capital
March 31, June 30, Change
2020 2019 Amount %
Cash $ 2,634 $ 22,216 $ (19,582 ) (88%)
Current Assets $ 117,565 $ 142,874 $ (25,309 ) (18%)
Current Liabilities $ 4,098,261 $ 3,589,953 $ 508,308 14 %
Working Capital (Deficiency) $ (3,980,696 ) $ (3,447,079 ) $ (533,617 ) 15 %
Our working capital deficit increased as of March 31, 2020, as compared to June
30, 2019, primarily due to an increase in accrued expenses and advances under
our operating agreement with Nami Development Corp.
In the coming quarters, prior to obtaining the final permits or licenses, our
largest cash outlays will be in regards to (1) professional fees for work
performed for our reporting as part of Nami Corp.,(2) for the consultants as
part of their work performed to respond to any additional requests received from
governmental authorities as part of the process of obtaining approval for the
permits and licenses and (3) repayment of accrued expenses and advances under
Nami Development Corp. agreement.
Due to the continuing losses and operating results to date, our financial
statements include a statement that there is a going concern in regards to the
Company. Without significant additional investment in the form of debt or equity
we may have difficulty meeting our obligations as they come due prior to our
obtaining all the necessary permits to begin contracting for sea sand mining
operations.
Cash Flows
Nine months ended
March 31, Change
2020 2019 Amount %
Cash Flows used in operating (75%)
activities $ (140,748 ) $ (561,115 ) $ 420,367
Cash Flows used in investing (44%)
activities $ (77,326 ) $ (137,921 ) $ 60,595
Cash Flows provided by financing (71%)
activities $ 202,797 $ 696,093 $ (493,296 )
Effects on changes in foreign
exchange rate $ (4,305 ) $ (135 ) $ (4,170 ) 3,089 %
Net decrease in cash during period $ (19,582 ) $ (3,078 ) $ 16,504 536 %
Operating Activities
Net cash used in operating activities was $140,748 for the nine months ended
March 31, 2020, compared to $561,115 in the same period in 2019.
During the nine months ended March 31, 2020, cash used in operating activities
consisted of a net loss of $867,660, depreciation of property, plant and
equipment of $5,833, amortization of concession acquisition costs of $159,865,
imputed interest on non-interest bearing related party advances contributed as
paid in capital of $158,156, expense paid directly through an unrelated party of
$349,418, change in prepayment of $40,000, offset by change in other receivable
and deposits of $11,463, change in inventory of $26,924 and change in accounts
payable and accrued liabilities of $52,192.
During the nine months ended March 31, 2019, cash provided by operating
activities consisted of a loss of $685,943, depreciation of property, plant and
equipment of $7,524, amortization of concession acquisition costs of $25,625,
imputed interest of $103,127, management fee paid by related party of $192,953,
offset by change in prepayment of $42,579, change in other receivable and
deposits of $14,458 and change in accounts payable and accrued liabilities of
$147,364.
Investing Activities
Net cash used in investing activities was $77,326 for the nine months ended
March 31, 2020, compared to $137,921 in the same period in 2019. During the nine
months ended March 31, 2020, the Company purchased $5,383 of property and
equipment and concession acquisition costs of $71,943. During the nine months
ended March 31, 2019, the Company purchased $13,597 of property and equipment
and concession acquisition costs of $124,324.
18
Table of Contents
Financing Activities
Net cash provided by financing activities was $202,797 for the nine months ended
March 31, 2020, compared to $696,093 in the same period in 2019. Net cash used
in financing activities for the nine months ended March 31, 2020 included
advances received from an unrelated party of $204,019 and advances received from
a director of $792, offset by dividend on Series A Preferred Stock of $2,014.
Net cash from financing activities for the nine months ended March 31, 2019
included $706,399 from advances received from related parties and $8,878 from
the issuance of Series A Preferred Stock, offset by dividend on Series A
Preferred Stock of $4,115 and repayments of related party advances of $15,069.
Plan of Operations
This report contains forward looking statements relating to our Company's future
economic performance, plans and objectives of management for future operations,
projections of revenue mix and other financial items that are based on the
beliefs of, as well as assumptions made by and information currently known to,
our management. The words "expects", "intends", "believes", "anticipates",
"may", "could", "should" and similar expressions and variations thereof are
intended to identify forward-looking statements. The cautionary statements set
forth in this section are intended to emphasize that actual results may differ
materially from those contained in any forward looking statement.
The Company will have to raise approximately $250,000 to meet its operating
needs for the next twelve (12) months. It intends to raise funds from private
placement of its securities. If the Company is unsuccessful in raising the
additional proceeds through a private placement offering it will then have to
seek additional funds through debt financing, which would be highly difficult
for a development stage company to secure. Therefore, the Company is highly
dependent upon the success of the 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 no 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.
At such time these funds are required, 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 the Company cannot raise additional
proceeds via a private placement of our common stock or secure debt financing we
would be required to cease business operations. As a result, investors in the
Company's common stock would lose all of their investment.
The Company intends to become a holding company with the objective of
systematically acquiring assets in the form of profitable companies to be
acquired throughout the Asian region, providing consistent attractive returns to
its investments.
In December 2017, the Company entered into a Letter of Intent with GMCI Corp., a
Nevada corporation with offices in Kuala Lumpur, Malaysia, whereby the Company
would acquire up to 100% of the issued and outstanding shares of GMCI's stock.
GMCI is currently in the business of financing bauxite trading transactions
between a private Malaysian company and its customers in the People's Republic
of China. The acquisition of GMCI is subject to completion of NAMI's due
diligence review, execution of a definitive agreement and shareholders' meeting.
On July 4, 2018, NAMI Corp., the Company entered into a Termination Agreement
(the "Termination Agreement") with GMCI, pursuant to which the Company
terminated the Letter of Intent (the "Letter of Intent") entered between NAMI
and GMCI dated December 11, 2017 regarding the acquisition by NAMI of up to one
hundred percent (100%) of the issued and outstanding capital stock of GMCI in
exchange of shares of capital stock of NAMI.
On July 12, 2018, we completed a reverse acquisition transaction through a share
exchange with GMCI, the sole shareholder of SBS Mining Corp. Malaysia Sdn. Bhd
("SBS") shareholder, whereby we acquired 100% of the outstanding shares of SBS
from GMCI in exchange for the issuance of a total of 720,802,346 shares of our
common stock to GMCI, representing 102.08% of our pre-merger issued and
outstanding shares of common stock. As a result of the reverse acquisition, SBS
became our wholly-owned subsidiary and the former SBS Shareholders, GMCI and
subsequently its shareholders, became our controlling stockholders. The share
exchange transaction was treated as a recapitalization, with SBS as the acquirer
and the Company as the acquired party for accounting purposes. Unless the
context suggests otherwise, when we refer in this report to business and
financial information for periods prior to the consummation of the reverse
acquisition, we are referring to the business and financial information of SBS.
On January 17, 2019, Nami entered into a Letter of Intent with Pembinaan Kaya
Hebat Sdn Bhd, a Malaysian corporation engaged in granite mining business
("PKH") for the acquisition by NAMI of up to one hundred percent (100%) of the
issued and outstanding capital stock of PKH with consideration at a purchase
price at fair market value (the "Acquisition"). The completion of the
Acquisition is subject to various conditions precedent, including but not
limited to negotiating and execution a form of purchase agreement that is
acceptable to both parties, approval of the financial statements of both
parties, and fair market valuation of PKH which is not probable as of the date
of these financial statements. In the event that Nami is able to complete the
Acquisition, it intends to operate PKH as its wholly owned subsidiary or a
majority-owned subsidiary.
19
Table of Contents
On September 6, 2019, SBS Mining Corp. Malaysia Sdn. Bhd.a entered into a mining
agreement with Wan Ismail bin Wan Ahmad (the "Donor") pursuant to which the
Donor granted to SBS the sole and exclusive rights to mine for river sand and
other materials from a 1.9040 hectare (4.7 acre) plot of land located at Kampung
Tiram, district of Kuala Kuantan, Kuantan, Malaysia (the "Concession") for which
the Donor had received a lease license from the State Government of Pahang. SBS
shall pay the Donor a fixed monthly rate for the sole and exclusive rights to
mine the Concession. With the grant of the sole and exclusive rights of the
aforementioned mining Concession for river sand, the Company expands its current
business portfolio to river sand mining and trading. Meanwhile, the Company
plans to continue acquiring strategic mining concessions to enhance its river
sand mining division.
Off Balance Sheet Arrangement
The Company has no off-balance sheet arrangements that have or are reasonably
likely to have a current or future effect or change on the Company's financial
condition, revenues or expenses, results of operations, liquidity, capital
expenditures or capital resources that are material to investors. The term
"off-balance sheet arrangement" generally means any transaction, agreement or
other contractual arrangement to which an entity unconsolidated with the Company
is a party, under which the Company has (i) any obligation arising under a
guarantee contract, derivative instrument or variable interest; or (ii) a
retained or contingent interest in assets transferred to such entity or similar
arrangement that serves as credit, liquidity or market risk support for such
assets.
© Edgar Online, source Glimpses
NAMI CORP. 
