This Quarterly Report on Form 10-Q includes forward-looking statements that
reflect management's current views with respect to future events and financial
performance. Forward-looking statements are statements in respect of future
events or our future financial performance. In some cases, you can identify
forward-looking statements by terminology such as "may," "should," "expects,"
"plans," "anticipates," "believes," "estimates," "predicts," "potential" or
"continue" or the negative of these terms or other comparable terminology. These
statements include statements regarding the intent, belief or current
expectations of our management team, as well as the assumptions on which such
statements are based. Prospective investors are cautioned that any such
forward-looking statements are not guarantees of future performance and involve
risk and uncertainties, and that actual results may differ materially from those
contemplated by such forward-looking statements. These statements are only
predictions and involve known and unknown risks, uncertainties and other
factors, including the risks set forth in the section entitled "Risk Factors" in
our Annual Report on Form 10-K for the fiscal year ended
? absence of contracts with customers or suppliers; ? our ability to maintain and develop relationships with customers and suppliers; ? the impact of competitive products and pricing; ? supply constraints or difficulties; ? the retention and availability of key personnel; ? general economic and business conditions; ? substantial doubt about our ability to continue as a going concern; ? our ability to successfully implement our business plan; ? our need to raise additional funds in the future; ? our ability to successfully recruit and retain qualified personnel in order to continue our operations; ? our ability to successfully acquire, develop or commercialize new products; ? the commercial success of our products; ? the impact of any industry regulation; ? our ability to develop existing mining projects or establish proven or probable
reserves;
? our dependence on one vendor for our minerals for our products; ? the impact of potentially losing the rights to properties; ? the impact of the increase in the price of natural resources; and ? the continued impact of the COVID-19 pandemic.
We undertake no obligation to update or revise forward-looking statements to reflect events or circumstances occurring after the date of this Quarterly Report, except as required by law.
As used in this Quarterly Report and unless otherwise indicated, the terms
"Company," "we," "us," and "our," refer to
Business Overview
We are an industrial mineral and natural resource company that provides
solutions to the agriculture and construction materials markets in
25 Agricultural Sector
We develop specialized fertilizers, sun protectants, soil amendments and
bio-stimulants for organic and non-organic sustainable agriculture. We have
developed and will seek to develop additional products derived from mineralized
materials of leonardite, kaolin clay, laterite, and other natural minerals.
These mineral and soil amendments are used to protect crops, plants and fruits
from the sun and winter damage, to provide nutrients to plants, and to improve
dormancy and soil ecology to help farmers increase the yields of their harvests.
We are building a brand family under the parent trade name "
Construction Sector
We are developing and testing a kaolin-based product that it believes will help create a lower CO2-emitting concrete through the use of high-quality supplementary cementitious materials ("SCMs"). We are developing SCMs for the construction material markets, particularly the cement markets that we believe can potentially replace up to 40% of cement, the most polluting part of concrete. As government agencies continue to enact stricter requirements for less-polluting forms of concrete, we believe there are significant opportunities for high-quality SCM products in the construction-materials sector.
We utilize the services of USMC, for the development and contract mining of industrial mineral and metal projects, exploration drilling, preparation of feasibility studies, mine modeling, on-site construction, production, site reclamation and for product fulfillment. Exploration services include securing necessary permits, environmental compliance, and reclamation plans. In addition, a substantial portion of the minerals used by the Company are obtained from properties owned or controlled by USMC.
Recent Developments
On
On
Results of Operations Comparison of the Three Months EndedFebruary 28, 2023 to the Three Months EndedFebruary 28, 2022 February 28, February 28, 2023 2022 Variance Revenue, net$ 52,256 $ -$ 52,256 Operating Expenses: Selling, general and administrative 5,886,870 11,200,401 (5,313,531 ) Product fulfillment 22,463 3,252 19,211 Loss from operations (5,857,077 ) (11,203,653 ) (5,346,576 ) Other income (expense) 35,401 2,007 33,394 Interest expense (9,123 ) (20,898 ) (11,775 ) Net Loss$ (5,830,799 ) $ (11,222,544 ) $ (5,391,745 ) 26 Revenues
Revenue increased by
Operating Expenses
Total operating expenses decreased by
The Company continued to expense the option to purchase an aggregate of
116,000,000 shares of common stock granted to USMC on
Product fulfillment expenses increased by
Other Income (Expenses)
Total other income (expense) increased by
Liquidity and Capital Resources
As of
The Company's operating activities consume the majority of its cash resources. The Company anticipates that it will continue to incur operating losses as it executes its development plans for 2023, as well as other potential strategic and business development initiatives. In addition, the Company has had and expects to have negative cash flows from operations, at least into the near future. The Company has previously funded, and plans to continue funding, these losses with cash advances from USMC and the sale of equity, and convertible notes. The accompanying condensed consolidated financial statements do not include any adjustments that might be necessary should the Company be unable to continue as a going concern.
Although no assurances can be given as to the Company's ability to deliver on
its revenue plans or that unforeseen expenses may arise, management currently
believes that the revenue to be generated from operations together with equity
and debt financing, including funding from USMC in connection with the
On
27
On
Going Concern
The unaudited condensed consolidated financial statements contained in this
Quarterly Report on Form 10-Q have been prepared assuming that the Company will
continue as a going concern. The Company has accumulated losses from inception
through
The condensed consolidated financial statements do not include any adjustments that may be necessary should the Company be unable to continue as a going concern. Working Capital Deficiency February 28, November 30, 2023 2022 Current assets$ 78,260 $ 23,786 Current liabilities 736,094 644,076 Working capital deficiency$ (657,834 ) $ (620,290 )
The increase in current assets is primarily due to the increase of accounts
receivable of
Cash Flows Three Months EndedFebruary 28, 2023 2022
Net cash used in operating activities
- - Net cash provided by financing activities 290,000 118,000 Increase (decrease) in cash$ 2,368 $ (121,544 ) Operating Activities
Net cash used in operating activities was
Net cash used in operating activities was
28 Investing Activities
There were no investing activities during the three months ended
Financing Activities
For the three months ended
For the three months ended
Off-Balance Sheet Arrangements
We have no off-balance sheet arrangements.
Critical Accounting Policies and Procedures
Our significant accounting policies are more fully described in Note 1 to our
condensed consolidated financial statements included in this Quarterly Report
and in our Annual Report on Form 10-K for the fiscal year ended
Recently Adopted Accounting Pronouncements
Our recently adopted accounting pronouncements are more fully described in Note 3 to our unaudited condensed consolidated financial statements included in this Quarterly Report.
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