FORWARD LOOKING STATEMENTS
Statements made in this Form 10-Q that are not historical or current facts are
"forward-looking statements" made pursuant to the safe harbor provisions of
Section 27A of the Securities Act of 1933 (the "Act") and Section 21E of the
Securities Exchange Act of 1934. These statements often can be identified by the
use of terms such as "may," "will," "expect," "believe," "anticipate,"
"estimate," "approximate" or "continue," or the negative thereof. We intend that
such forward-looking statements be subject to the safe harbors for such
statements. We wish to caution readers not to place undue reliance on any such
forward-looking statements, which speak only as of the date made. Any
forward-looking statements represent management's best judgment as to what may
occur in the future. However, forward-looking statements are subject to risks,
uncertainties and important factors beyond our control that could cause actual
results and events to differ materially from historical results of operations
and events and those presently anticipated or projected. We disclaim any
obligation subsequently to revise any forward-looking statements to reflect
events or circumstances after the date of such statement or to reflect the
occurrence of anticipated or unanticipated events.
DESCRIPTION OF OUR BUSINESS
Starguide Group, Inc. was incorporated in the State of Nevada on February 21,
2017 and established a fiscal year end of January 31. We are still in the
development stage and as of today we have no revenues, have minimal assets and
have incurred losses since inception. We were formed to engage in the
distribution of Indian traditional art and crafts from India to individuals and
wholesalers around the world. As of today, we have not identified any party to
sell our products. Initially, our sole officer and director, Vicky Sharma will
market our products. We intend to hire salespersons with good knowledge and
connections in our market. The salesperson's job would be to find potential
customers, and to set up agreements with them. We intend to focus on direct
marketing efforts whereby our representative will directly contact. We plan to
advertise our service and products on different websites and social networks
using context ad. We plan to use internet catalogs and use many online marketing
tools to direct traffic to our website and identify potential customers. In
addition, we are going to issue monthly printed catalog and send it to our
clients.
RESULTS OF OPERATION
As of October 31, 2021, we had deficit of $33,133. Our financial statements have
been prepared assuming that we will continue as a going concern. We expect we
will require additional capital to meet our long-term operating requirements. We
expect to raise additional capital through, among other things, the sale of
equity or debt securities.
Three-month period ended October 31, 2021 compared to the three-month period
ended October 31, 2020
Revenue
During the three-month periods ended October 31, 2021 and 2020, the Company did
not generate any revenue.
Operating Expenses
During the three-month period ended October 31, 2021, we incurred total expenses
and professional fees of $5,265 compared to $1,246 for the three-month period
ended October 31, 2020. General and administrative and professional fee expenses
incurred generally related to corporate overhead, financial and administrative
contracted services, such as legal and accounting, developmental costs, and
marketing expenses.
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Net Loss
Our net loss for the three-month period ended October 31, 2021 was $5,265
compared to $1,246 for the three-month period ended October 31, 2020.
Nine-month period ended October 31, 2021 compared to the nine-month period ended
October 31, 2020
Revenue
During the nine-month periods ended October 31, 2021 and 2020, the Company did
not generate any revenue.
Operating Expenses
During the nine-month period ended October 31, 2021, we incurred total expenses
and professional fees of $22,494 compared to $6,286 for the nine-month period
ended October 31, 2020. General and administrative and professional fee expenses
incurred generally related to corporate overhead, financial and administrative
contracted services, such as legal and accounting, developmental costs, and
marketing expenses.
Net Loss
Our net loss for the nine-month period ended October 31, 2021 was $22,494
compared to $6,286 for the nine-month period ended October 31, 2020.
LIQUIDITY AND CAPITAL RESOURCES
As at October 31, 2021 our total assets were $2,674 compared to $21,528 in total
assets at January 31, 2021. As at October 31, 2021, total assets comprised of
$2,209 in cash and $465 in net fixed assets. As at October 31, 2021 our current
liabilities were $7,767 compared to $7,667 in current liabilities at January 31,
2021. As at October 31, 2021, current liabilities comprised of $100 in accounts
payable and $7,667 in loans from related party.
Stockholders' deficit was $5,093 as of October 31, 2021 compared to $13,861 as
of January 31, 2021.
Cash Flows from Operating Activities
For the nine-month period ended October 31, 2021, net cash flows used in
operating activities was $22,128, consisting of net loss of $22,494 and
depreciation expense of $201, decrease in prepaid expenses of $65 and increase
in accounts payable of $100. For the nine-month period ended October 31, 2020,
net cash flows used in operating activities was $6,155 consisting of net loss of
$6,286, depreciation expense of $67 and decrease in prepaid expenses of $64.
Cash Flows from Investing Activities
Cash flows used in investing activities during the nine-month period ended
October 31, 2021 was $-0-, compared to $800 for the nine-month period ended
October 31, 2020.
Cash Flows from Financing Activities
Cash flows provided by financing activities during the nine-month period ended
October 31, 2021 were $3,540, consisting entirely of proceeds from issuance of
common stock compared to $12,100 for the nine-month period ended October 31,
2020, consisting of $5,650 loan from shareholder and $6,450 proceeds from
issuance of common stock.
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PLAN OF OPERATION AND FUNDING
We expect that working capital requirements will continue to be funded through a
combination of our existing funds and further issuances of securities. Our
working capital requirements are expected to increase in line with the growth of
our business.
Existing working capital, further advances and debt instruments, and anticipated
cash flow are expected to be adequate to fund our operations over the next
twelve months. We have no lines of credit or other bank financing arrangements.
Generally, we have financed operations to date through the proceeds of the
private placement of equity and debt instruments. In connection with our
business plan, management anticipates additional increases in operating expenses
and capital expenditures relating to: (i) acquisition of inventory; (ii)
developmental expenses associated with a start-up business; and (iii) marketing
expenses. We intend to finance these expenses with further issuances of
securities, and debt issuances. Thereafter, we expect we will need to raise
additional capital and generate revenues to meet long-term operating
requirements. Additional issuances of equity or convertible debt securities will
result in dilution to our current shareholders. Further, such securities might
have rights, preferences or privileges senior to our common stock. Additional
financing may not be available upon acceptable terms, or at all. If adequate
funds are not available or are not available on acceptable terms, we may not be
able to take advantage of prospective new business endeavors or opportunities,
which could significantly and materially restrict our business operations.
OFF-BALANCE SHEET ARRANGEMENTS
As of the date of this Quarterly Report, 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, capital expenditures or capital
resources that are material to investors.
GOING CONCERN
The independent auditors' report accompanying our January 31, 2021 financial
statements contained an explanatory paragraph expressing substantial doubt about
our ability to continue as a going concern. The financial statements have been
prepared "assuming that we will continue as a going concern," which contemplates
that we will realize our assets and satisfy our liabilities and commitments in
the ordinary course of business.
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