The following discussion and analysis should be read in conjunction with our
financial statements and related notes included elsewhere in this quarterly
report on Form 10-Q. This discussion and other parts of this quarterly report on
Form 10-Q contain forward-looking statements based upon current expectations
that involve risks and uncertainties. Our actual results and the timing of
selected events could differ materially from those anticipated in these
forward-looking statements as a result of several factors, including those set
forth under "Risk Factors" and elsewhere in this quarterly
report on Form 10-Q. We report financial information under US GAAP and our
financial statements were prepared in accordance with generally accepted
accounting principles in the United States.
In 2018, Easton's board of directors decided to diversify the
Company's activities and enter new market segments, in addition to its
existing and new pharmaceutical business and initiatives, including real estate
development and construction, food and beverage, gaming and cannabis, through a
combination of strategic acquisitions and joint ventures.
On December 23, 2020, the Company changed its name from Easton Pharmaceuticals,
Inc. to Parallel Industries Inc. The Company will be rebranding and believes
that the new name is more representative of the direction in which the Company
will be heading in the future.
The Company had no new business initiatives during the quarter ended September
30, 2021.
Results of Operations
The following discussions are based on our unaudited interim financial
statements. These discussions summarize our unaudited interim financial
statements for the three-month period ended September 30, 2021, and should be
read in conjunction with the Company's financial statements for the
year ended December 31, 2020 and notes thereto included in the Form 10-K filed
with the SEC.
The following discussion contains forward-looking statements that reflect our
plans, estimates and beliefs. Our actual results could differ materially from
those discussed in the forward-looking statements. Factors that could cause or
contribute to such differences include, but are not limited to those discussed
below and elsewhere in this Quarterly Report on Form 10-Q. The financial
statements are stated in United States Dollars and are prepared in accordance
with United States Generally Accepted Accounting Principles.
Three-Month Period Ended September 30, 2021 Compared to the Year Ended December
31, 2020
Revenue. We did not generate revenues for the quarter ended September 30, 2021
or for the comparable period in 2020. Following the false allegations made
against the Company and its director, we were unable to secure funding and
therefore we have been unable to resume activities as of yet.
Operating expenses: During the quarter ended September 30, 2021, we incurred
operating expenses in the amount of $84,350 compared to $46,315 for the Year
Ended December 31, 2020. The operating expenses were minimal during the year
2020 due to the global Covid-19 pandemic, along with the charges that were
outstanding against the Company's directors until October 15, 2020.
Net loss. The Company had a net loss of $84,350 for the three months ended
September 30, 2021 compared to $46,315 for the year ended December 31, 2020.
Since all charges were WITHDRAWN against the director of the Company that had
resulted from the false allegations made by the sellers of Supreme Sweets Inc.,
the director has resumed engagement in order to bring the Company current in its
filings and resume trading. The director is also assessing new opportunities to
generate revenue for the Company.
Going Concern Uncertainty
We did not have any revenues in 2020 or for the quarter ended September 30,
2021. There is no certainty as to the continuance of our revenues. The
development and commercialization of our other products, which are necessary for
our long-term financial health, are expected to require substantial further
expenditures. We remain dependent upon external sources for financing our
operations. Since inception, we have incurred substantial accumulated losses,
negative working capital, and negative operating cash flow, and have a
significant shareholders' deficit. These factors raise substantial
doubt about our ability to continue as a going concern. The financial statements
do not include any adjustments that might result from the outcome of this
uncertainty. We plan to finance our operations through the sale of equity and,
to the extent available, short term and long-term loans. There can be no
assurance that we will succeed in obtaining the necessary financing to continue
our operations.
Liquidity and Capital Resources
As at September 30, 2021, we had no current assets and our current liabilities
were $233,400.
Cash Flows from Operating Activities
We have generated negative cash flows from operating activities. For the three
months ended September 30, 2021, net cash flows used in operating activities was
($59,350) compared to ($43,415) for the year ended December 31, 2020.
Cash Flows from Investing Activities
We used approximately $18,797 in investing activities during the three months
ended June 30, 2021 and for the Year Ended December 31, 2020.
Cash Flows from Financing Activities
We did not have any cash flows from Financing Activities.
Off-Balance Sheet Arrangements
There were no off-balance sheet arrangements during the three months ended
September 30, 2021 that have, or are reasonably likely to have, a current or
future effect on our financial condition, revenues or expenses, results of
operations, liquidity, capital expenditures or capital resources that are
material to our interests.
Plan of Operation
As at September 30, 2021, we had a working capital deficit and we will require
additional financing in order to enable us to proceed with our plan of
operations.
When we will require additional financing, there can be no assurance that
additional financing will be available to us or that it can be obtained on
commercially reasonable terms. If we are not able to obtain the additional
financing on a timely basis, we will not be able to meet our other obligations
as they become due. We are pursuing various alternatives to meet our immediate
and long-term financial requirements.
We anticipate continuing to rely on equity sales of our common stock in order to
fund our business operations. Issuances of additional shares will result in
dilution to existing stockholders. There is no assurance that we will achieve
any additional sales of equity securities or arrange for debt or other financing
to fund our planned business activities.
Recent Accounting Pronouncements
There have been recent accounting pronouncements or changes in accounting
pronouncements that impacted the three months ended September 30, 2021 or which
are expected to impact future periods as follows:
In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit
Losses: Measurement of Credit Losses on Financial Instruments, which changes the
impairment model for most financial assets. This Update is intended to improve
financial reporting by requiring timelier recording of credit losses on loans
and other financial instruments held by financial institutions and other
organizations. The underlying premise of the Update is that financial assets
measured at amortized cost should be presented at the net amount expected to be
collected, through an allowance for credit losses that is deducted from the
amortized cost basis. The allowance for credit losses should reflect
management's current estimate of credit losses that are expected to
occur over the remaining life of a financial asset. The income statement will be
affected for the measurement of credit losses for newly recognized financial
assets, as well as the expected increases or decreases of expected credit losses
that have taken place during the period. The new standard is effective for
fiscal years and interim periods within those years beginning after December 15,
2022.
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