VADO CORP. The Company has no operations or revenue as of the date of this Report. We are a shell company and seeking to acquire another business. Management is exploring
and seeking to identify viable business opportunities within the
Plan of Operation
The Company has no operations from a continuing business in 2021 other than the
expenditures related to running the Company, and has no revenue from continuing
operations as of the date of this Report. We have terminated our operations in
the embroidery industry, and are currently in the process of developing a
business plan, including with respect to searching for, evaluating and obtaining
a business opportunity in the
Management intends to explore and identify business opportunities within the
We do not currently engage in any business activities that provide revenue or
cash flow. During the next 12 month period we anticipate incurring costs in
connection with investigating, evaluating and negotiating potential business
combinations, filing
Given our limited capital resources, we may consider a business combination with
an entity which has recently commenced operations, is a developing company or is
otherwise in need of additional funds for the development of new products or
services or expansion into new markets, or is an established business
experiencing financial or operating difficulties and is in need of additional
capital. Alternatively, a business combination may involve the acquisition of,
or merger with, an entity which desires access to the
On
Our management anticipates that we will likely only be able to effect one business combination due to our limited capital. This lack of diversification will likely pose a substantial risk in investing in the Company for the indefinite future, because it will not permit us to offset potential losses from one venture or operating territory against gains from another. The risks we face will likely be heightened to the extent we acquire a business operating in a single industry or geographical region.
We anticipate that the selection of a business combination will be a complex and risk-prone process. Because of general economic conditions, including unfavorable conditions caused by the coronavirus pandemic, rapid technological advances being made in some industries and shortages of available capital, management believes that there are a number of firms seeking business opportunities at this time at discounted rates with which we will compete. We expect that any potentially available business combinations may appear in a variety of different industries or regions and at various stages of development, all of which will likely render the task of comparative investigation and analysis of such business opportunities extremely difficult and complicated.
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Results of Operations For the Fiscal Year ended
The following overview of our results of operations should be read in light of the fact that we have no operations pending management's determination of the future direction of the Company, be it by reverse merger or similar business combination or otherwise. The only operations that existed in 2021 related to continuing operations relates to the business of running the Company and include mostly professional fees related to the Company's Exchange Act filings as well as general business expenditures related to finding an acquisition candidate.
Revenue, Cost of Revenue and Gross Profit
We had no revenue for the fiscal years ended
Operating Expenses
Included in continuing operations, we incurred operating expenses of
Other Income and Expenses
We incurred interest expense of
Net Loss
During the fiscal years ended
Preferred Stock Dividend
The Company recorded non cash dividends on its Series A Preferred Stock in the
amounts of
Net Loss Available to Common Shareholders
For the reasons above, the Company recorded net losses to common shareholders in
the amounts of
Liquidity and Capital Resources
Cash Flows used by Operating Activities:
For the fiscal year ended
For the fiscal year ended
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The Company received
Once we have developed and begun to implement our business plan, management intends to fund our working capital requirements through a combination of our existing funds and future issuances of debt or equity securities. Our working capital requirements are expected to increase in line with the implementation of a business plan and commencement of operations.
Based upon our current operations, we do not have sufficient working capital to fund our operations over the next 12 months. If we are able to close a reverse merger, it is likely we will need capital as a condition of closing that acquisition. Because of the uncertainties, we cannot be certain as to how much capital we need to raise or the type of securities we will be required to issue. In connection with a reverse merger, we will be required to issue a controlling block of our securities to the target's shareholders which will be very dilutive.
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.
We anticipate that we will incur operating losses in the next 12 months. Our prospects must be considered in light of the risks, expenses and difficulties frequently encountered by companies in their early stage of development. Such risks for us include, but are not limited to, an evolving and unpredictable business model, recognition of revenue sources, and the management of growth. To address these risks, we must, among other things, develop, implement and successfully execute our business and marketing strategy, respond to competitive developments, 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 could have a material adverse effect on our business prospects, financial condition and results of operations.
COVID-19 Update
To date, the COVID-19 pandemic has not had a material impact on the Company, particularly due to our current lack of operations. The pandemic may, however, have an impact on our ability to evaluate and acquire an operating entity through a reverse merger or otherwise. See Item 1A "Risk Factors" for more information. While vaccinations beginning in 2021 allowed for the partial reopening of the economy, the recent "Omicron" variant of the virus, as well as reduced efficacy of vaccines over time and the possibility that a large number of people decline to get vaccinated or receive booster shots, creates inherent uncertainty as to the potential future impact of the pandemic on our business, our industry and the economy in general.
Off Balance Sheet Arrangements
As of the date of this 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 registered public accounting firm auditors' report accompanying
our
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