SECTOR 10, INC. --------------------------------------------------------------------------------
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Plan of Operation
The Company's cash balance is insufficient to satisfy the Company's cash requirements for the next 12 months. Due to issues surrounding prior litigation, the ability to deliver products to customers has been delayed.
Our notes to the financial statements disclose that the cash flow of the Company
has been absorbed in operating activities, has incurred net losses for the
fiscal year and has a working capital deficiency. Due to the prior litigation
and the current restructuring, the Company operations are not likely to produce
positive cash flow until at least the fiscal year ended
Results of Operations for the year ended
Revenues -
The Company had no revenues for the fiscal year ended
The Company had no revenues for the fiscal year ended
Other Income- Other Income-
Other Income for the fiscal year ended
The Company had no other income for the fiscal year ended
Cost of Sales -
The Company had no cost of sales or other operating expenses for the fiscal year
ended
The Company had no cost of sales or other operating expenses for the fiscal year
ended
General and Administrative Expenses -
General and administrative expenses were
General and administrative expenses were
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Depreciation Expense -
Depreciation expense was
Depreciation expense was
Interest expense
The Company had interest expense of
The primary difference from the prior year is that the Company is no longer accruing interest on unpaid wages and the impact of the litigation settlement.
The Company had interest expense of
Other expense
The Company had no other expense for the year ended
The Company had no other expense for the year ended
Liquidity and Capital Resources
Cash and cash equivalents -
We believe our bank balance of
Total assets -
We currently have
Working capital -
As of this filing date, the Company is in the midst of litigation and in the
process of restructuring its operations in order to raise capital and continue
in its efforts to manufacture and distribute its products. The restructuring
will not be complete until the litigation has been completed. Potential funding
for operations is not expected until sometime in the fiscal year ended
Our auditors are of the opinion that our continuation as a going concern is in doubt. Our continuation as a going concern is dependent upon continued financial support from our shareholders and other related parties. THE FINANCIAL STATEMENTS, RELATED NOTES AND THE OTHER INFORMATION INCLUDED IN THIS REPORT HAVE NOT BEEN REVIEWED BY THE COMPANY'S OUTSIDE ACCOUNTANT PRIOR TO THE FILING OF THIS REPORT.
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Liabilities -
Current liabilities as of
Current liabilities as of
Long term liabilities as of
Long term liabilities as of
Total liabilities as of
Cash flows -
Year Ended Year Ended
March 31, March 31,
Sources and Uses of Cash 2021 2020
Net cash provided by / (used in)
Operating activities $ 0 $ 0
Investing activities 0 0
Financing activities 0 0
Increase/(decrease) in cash and cash equivalents $ 0 $ 0
Years endedMarch 31, 2021 and 2020 Cash and cash equivalents $ 0 $ 0 Operating Activities -
Cash used in operations for the year ended
Cash used in operations for the year ended
Investing Activities -
There was no cash used in Investing Activities for the year ended
There was no cash used in Investing Activities for the year ended
Financing Activities -
There was no of cash provided in financing activities for the year ended
There was no of cash provided in financing activities for the year ended
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Critical Accounting Policies
The discussions and analysis of our financial condition and results of operations, including the discussion on liquidity and capital resources, are based upon the financial statements, which have been prepared in accordance with US GAAP. The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. On an ongoing basis, management re-evaluates its estimates and judgments, particularly those related to the determination of the impairment of its intangible assets. Actual results could differ from the estimates. We believe the following are the critical accounting policies used in the preparation of the consolidated financial statements.
Revenue -
The Company had no sales activity during the current fiscal year ended
Income Taxes -
The amount of income taxes recorded by us requires the interpretation of complex rules and regulations of various taxing jurisdictions throughout the world. We have recognized deferred tax assets and liabilities for all significant temporary differences, operating losses and tax credit carryforwards. We routinely assess the potential realization of our deferred tax assets and reduce such assets by a valuation allowance if it is more likely than not that some portion or all of the deferred tax assets will not be realized. We routinely assess potential tax contingencies and, if required, establish accruals for such contingencies. The accruals for deferred tax assets and liabilities are subject to a significant amount of judgment by us and we review and adjust routinely our estimates based on changes in facts and circumstances. Although we believe our tax accruals are adequate, material changes in these accruals may occur in the future, based on the progress of ongoing tax audits, changes in legislation and resolution of pending tax matters.
Litigation -
An estimated loss from a loss contingency is recorded when information available prior to issuance of the financial statements indicates that it is probable that a liability has been incurred at the date of the financial statements and the amount of the loss can be reasonably estimated. Accounting for contingencies such as legal matters requires the use of judgment as to the probability of the outcome and the amount. Many legal contingencies can take years to be resolved. An adverse outcome could have a material impact on our financial condition, operating results and cash flows.
Going Concern Qualification
Due to the prior litigation, the Company has a significant risk of not being able to continue as a going concern. Investors should carefully examine our financial statements.
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