The following discussion should be read in conjunction with our condensed financial statements, including the notes thereto, appearing elsewhere in this quarterly report. The following discussion contains forward-looking statements that reflect our plans, estimates and beliefs. Our actual results could differ materially from those discussed in the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those discussed below and elsewhere in this Quarterly Report ". Our unaudited condensed financial statements are stated in United States Dollars and are prepared in accordance with United States Generally Accepted Accounting Principles.




RESULTS OF OPERATIONS

Results of Operations for the Three Months ended November 30, 2019 Compared to the Three Months ended November 30, 2018

Operating Expenses

During the three months ended November 30, 2019, we incurred total operating expenses of $73,318 compared to $336,662 incurred during the three months ended November 30, 2018. Operating expenses consist of the following.

During the three months ended November 30, 2019, we incurred related party rent expense of $45,000 compared to $45,000 incurred during the three months ended November 30, 2018. Our sublease for office space began in March 2018.

During the three months ended November 30, 2019, we incurred general and administrative ("G&A") expenses of $28,318 compared to $291,662 incurred during the three months ended November 30, 2018, a decrease of $263,344 or 90.2%. G&A expenses have decrease largely due to a decrease in consulting expense and other professional fees.




Other Expense

During the three months ended November 30, 2019, we incurred interest expense of $133,288 compared to $133,288 incurred during the three months ended November 30, 2018. Interest expense is due to the convertible promissory notes with Sky Rover Holdings, Ltd. and other related party loans (Note 4).

During the three months ended November 30, 2019, we had interest income of $20,091 compared to $18,031 during the three months ended November 30, 2018.

Net Loss

Our net loss for the three months ended November 30, 2019 was $186,515, compared to a net loss of $451,919 for the prior three months ended November 30, 2018. The decrease in net loss is a result of the decrease in G & A expense.

Results of Operations for the Six Months ended November 30, 2019 Compared to the Six Months ended November 30, 2018

Operating Expenses

During the six months ended November 30, 2019, we incurred total operating expenses of $310,021 compared to $692,620 incurred during the six months ended November 30, 2018. Operating expenses consist of the following.

During the six months ended November 30, 2019, we incurred related party rent expense of $90,000 compared to $90,000 incurred during the six months ended November 30, 2018. Our sublease for office space began in March 2018.

During the six months ended November 30, 2019, we incurred general and administrative ("G&A") expenses of $220,021 compared to $602,620 incurred during the six months ended November 30, 2018, a decrease of $382,599 or 63.4%. G&A expenses have decrease largely due to a decrease in consulting expense and other professional fees.




Other Expense

During the six months ended November 30, 2019, we incurred interest expense of $268,015 compared to $291,162 incurred during the six months ended November 30, 2018. Interest expense is due to the convertible promissory notes with Sky Rover Holdings, Ltd. and other related party loans (Note 4) and has decreased to the conversion of and repayment of some of those notes.






                                       10



--------------------------------------------------------------------------------

During the six months ended November 30, 2019, we had interest income of $41,845 compared to $31,150 during the six months ended November 30, 2018.

Net Loss

Our net loss for the six months ended November 30, 2019 was $536,191, compared to a net loss of $952,635 for the prior six months ended November 30, 2018. The decrease in net loss is a result of the decrease in G & A expense.

LIQUIDITY AND CAPITAL RESOURCES

Cash Flows from Operating Activities

We have not generated positive cash flows from operating activities. During the six months ended November 30, 2019, net cash flows used in operating activities was $243,405. For the same period ended November 30, 2018, net cash flows used in operating activities was $620,809.

Cash Flows from Investing Activities

During the six months ended November 30, 2019, we used $0 in investing activities compared to $432,200 for the same period ended November 30, 2018.

Cash Flows from Financing Activities

For the six months ended November 30, 2019, net cash used in financing activities was $0. For the six months ended November 30, 2018, net cash used in financing activities was $4,965,000. In 2018, $35,000 was received by way of a loan from our sole officer, director and principal shareholder, and the Company repaid $5,000,000 on the related party loans. (see Note 4)

As of November 30, 2019, the company had cash of $4,264,992 to be used for operation over at least the next twelve months.

PLAN OF OPERATION AND FUNDING

Unless and until we acquire an ongoing business, or until we begin to generate revenues and positive cash flow from the merchant platform or the game platform, as to which there is no assurance, we expect that working capital requirements will continue to be funded through related party loans and/or further issuances of other securities. There is no assurance that we will be able to meet our working capital requirement from either possible source.

We have no lines of credit or other bank financing arrangements. To date, we have been wholly dependent upon our CEO and majority shareholder Mr. Pei, and his affiliated companies, to provide financing to the Registrant, most of the time via convertible loans. 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, and we might be unable to continue in business.

As of the date of the filing of this Quarterly Report on Form 10-Q, the merchant platform has been completely developed, and the Company owns this technology; however, no licensee has yet been signed by the Company, and no revenues have been generated. The game platform described above has not yet been completed and is not operational.




MATERIAL COMMITMENTS

As of the date of this Quarterly Report, we do not have any material commitments.

PURCHASE OF SIGNIFICANT EQUIPMENT

We do not have any agreements at this time, to purchase any significant equipment during the next twelve months.

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.






                                       11

--------------------------------------------------------------------------------

© Edgar Online, source Glimpses