SAMSARA LUGGAGE, INC. The following Management's Discussion and Analysis of Financial Condition and Results of Operations ("MD&A") is intended to help you understand our historical results of operations during the periods presented and our financial condition. This MD&A should be read in conjunction with our consolidated financial statements and the accompanying notes to consolidated financial statements, and contains forward-looking statements that involve risks and uncertainties. See section entitled "Forward-Looking Statements" above.
Overview and Outlook
The Company was incorporated on
Results of Operations
Year ended
Revenue
The Company generates revenues through the sale and distribution of smart
luggage products. Revenues during the year ended
Costs of Revenue
Costs of revenue consists of the purchase of raw materials and the cost of
production. Cost of revenues during the year ended
Gross Profit
During the year ended
Operating Expenses
Operating expenses totaled
Net Loss
We incurred a net loss of
23
Year ended
Revenue
The Company generates revenues through the sale and distribution of smart
luggage products. Revenues during the year ended
Costs of Revenue
Costs of revenue consists of the purchase of raw materials and the cost of
production. Cost of revenues during the year ended
Gross Profit
During the year ended
Operating Expenses
Operating expenses totaled
Net Loss
We incurred a net loss of
Liquidity and Capital Resources
Liquidity is the ability of a company to generate funds to support its current and future operations, satisfy its obligations, and otherwise operate on an ongoing basis. Significant factors in the management of liquidity are funds generated by operations, levels of accounts receivable and accounts payable and capital expenditures.
As of
The decrease in our working capital deficit was mainly attributable to the
decrease of
Net cash used in operating activities was
24
Net cash used in investing activities was
Net cash provided by financing activities was approximately
Necessity of Additional Financing
Securing additional financing is critical to implementation of our business plan. If and when we obtain the required additional financing, we should be able to fully implement our business plan. In the event we are unable to raise any additional funds we will not be able to pursue our business plan, and we may fail entirely. We currently have no committed sources of financing.
Going Concern Consideration
The above conditions raise substantial doubt about our ability to continue as a going concern. Our independent auditors included an explanatory paragraph in their report on the accompanying financial statements regarding concerns about our ability to continue as a going concern. Our financial statements contain additional note disclosures describing the circumstances that lead to this disclosure by our independent auditors. Although we anticipate that our current operations will provide us with cash resources, we believe existing cash will not be sufficient to fund planned operations and projects through the next 12 months. Therefore, we believe we will need to increase our sales, attain profitability, and raise additional funds to finance our future operations. Any meaningful equity or debt financing will likely result in significant dilution to our existing stockholders. There is no assurance that additional funds will be available on terms acceptable to us, or at all.
To address these risks, we must, among other things, implement and successfully execute our business and marketing strategy surrounding our products, continually develop and upgrade our website, respond to competitive developments, lower our financing costs, and attract, retain and motivate qualified personnel. There can be no assurance that we will be successful in addressing such risks, and the failure to do so can have a material adverse effect on our business prospects, financial condition and results of operations
Seasonality
We do not expect our sales to be impacted by seasonal demands for our products.
Off-Balance Sheet Arrangements
We have no off-balance sheet arrangements.
© Edgar Online, source
