Management's Discussion and Analysis of Financial Condition and Results of Operations
Caution Regarding Forward-Looking Information
This Quarterly Report on Form 10-Q, including, without limitation, statements containing the words "believes", "anticipates", "expects" and words of similar import, constitute forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.
Such factors include, among others, the following: international, national and local general economic and market conditions: demographic changes; the ability of the Company to sustain, manage or forecast its growth; the ability of the Company to successfully make and integrate acquisitions; existing government regulations and changes in, or the failure to comply with, government regulations; adverse publicity; competition; fluctuations and difficulty in forecasting operating results; changes in business strategy or development plans; business disruptions; the ability to attract and retain qualified personnel; and other factors referenced in this and previous filings.
Given these uncertainties, readers of this Form 10-Q and investors are cautioned not to place undue reliance on such forward-looking statements. The Company disclaims any obligation to update any such factors or to publicly announce the result of any revisions to any of the forward-looking statements contained herein to reflect future events or developments.
Overview
The Company was organized on
The Company qualifies as an "emerging growth company" as defined in the
Jumpstart Our Business Startups Act which became law in
Overview of the Business
Since
The Membrane Technology has been shown in the following applications: to extract lithium from brine solutions or mine leach solutions; to extract fatty acids from vegetable oils as a superior refining process; to extract glycerols from biodiesel as a superior purification process; to extract radioactive ions from nuclear waste waters; to extract specific metal ions from mine leach solutions and waste effluents; and to remove ions from seawater for desalination, among other things.
The primary focus of the current business is: on the continued organization and the hiring of targeted expertise; on the protection of the Company's intellectual property asset; and the configuration of the most efficient commercial pilot plant for lithium extraction, followed by the extraction of radioactive ions from nuclear waste waters and the refining of vegetable oils by the removal of fatty acids; on the removal of glycerols for purification of biodiesel.
Impact of Events inUkraine
The Business of the Company and its fundamental research are conducted in
3
In addition, the Company operated offices in
While the Company may reorder certain of its plans, it is not anticipated that
the conflict in
Results of Operations
The following table summarizes the results of our operations during the three
months ended
Three Months Ended March 31, 2022 2021 Change Revenues $ - $ - $ - Operating expenses 374,109 16,650 357,459 Other expense 13,781 - 13,781 Net profit (loss) (387,890 ) (16,650 ) (371,240 )
Profit (Loss) per share of common stock (0.01 ) (0.00 ) (0.01 )
The increase in operating expenses is the result of the new focus of the
business of the Company following the acquisition of the Membrane Technology on
Liquidity and Capital Resources
As of
Our operating activities used
Our cash requirements are primarily for the continued development of the commercial pilot plant with the purchase of equipment and materials as well as the operating expenses for the development of pilot plant systems and its demonstration to potential customers, as well as our payroll expense. During the next 6 months, it is planned that the Company open new corporate offices and commence the organization of its initial production facility.
Management believes that the Company's cash on hand will not be sufficient to
fund all Company obligations and commitments for the next twelve months. The
Company has reached the stage in its development when it requires significant
additional finance to be able to bring the first of its extraction processes to
a marketable form. Management estimates that the minimum finance necessary to be
able to achieve this is
4
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 or capital expenditures or capital resources that is material to an investor in our securities.
Seasonality
Our operating results are not affected by seasonality.
Inflation
The Company has relied on funding from debt convertible equity as its primary source of funding. In the event of a high inflationary environment, this method of funding may become more expensive and may be less readily available. Our core business and operating results are not affected in any material way by inflation.
Critical Accounting Policies
Our financial statements and accompanying notes have been prepared in accordance with GAAP. The preparation of these financial statements requires management to make estimates, judgments, and assumptions that affect reported amounts of assets, liabilities, revenues and expenses. We continually evaluate the accounting policies and estimates used to prepare the financial statements. The estimates are based on historical experience and assumptions believed to be reasonable under current facts and circumstances. Actual amounts and results could differ from these estimates made by management. Certain accounting policies that require significant management estimates and are deemed critical to our results of operations or financial position. Our critical accounting estimates are more fully discussed in Note 2 to our unaudited financial statements contained herein.
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