FORWARD-LOOKING STATEMENTS
This quarterly report contains forward-looking statements relating to future
events or our future financial performance. In some cases, you can identify
forward-looking statements by terminology such as "may", "should", "intends",
"expects", "plans", "anticipates", "believes", "estimates", "predicts",
"potential", or "continue" or the negative of these terms or other comparable
terminology. These statements are only predictions and involve known and unknown
risks, uncertainties and other factors which may cause our or our industry's
actual results, levels of activity or performance to be materially different
from any future results, levels of activity or performance expressed or implied
by these forward-looking statements.
Although we believe that the expectations reflected in the forward-looking
statements are reasonable, we cannot guarantee future results, levels of
activity or performance. You should not place undue reliance on these
statements, which speak only as of the date that they were made. These
cautionary statements should be considered with any written or oral
forward-looking statements that we may issue in the future. Except as required
by applicable law, including the securities laws of the United States, we do not
intend to update any of the forward-looking statements to conform these
statements to actual results, later events or circumstances or to reflect the
occurrence of unanticipated events.
In this report unless otherwise specified, all dollar amounts are expressed in
United States dollars and all references to "common shares" refer to the common
shares of our capital stock.
The management's discussion and analysis of our financial condition and results
of operations are based upon our financial statements, which have been prepared
in accordance with accounting principles generally accepted in the United States
of America ("GAAP").
As used in this quarterly report, the terms "we", "us", "our", and "our company"
means Cloudweb, Inc., unless otherwise indicated.
General Overview
Our Company
Cloudweb, Inc. is a Florida corporation incorporated on May 25, 2014 as
Formigli, Inc. In December 2015, the Company changed its name to Data Backup,
Inc., and on November 4, 2016, the Company changed its name to Data Backup
Solutions Inc. On October 1, 2017, the Company changed its name to Cloudweb,
Inc.
Our headquarters are located at 800 W El Camino Real Suite 180 Mountain View,
Florida, CA 94040.
We are currently exploring different options of further developing and marketing
our web hosting and data storage services Hostwizer.com, W8hosting.com, and
JeyCloud.com. This includes plans to make hosting available for free while being
supported by advertiser content. The Company will also look into white labeling
its services to allow other brands to use our platforms for their own needs.
We do not have any subsidiaries.
We have never declared bankruptcy, been in receivership, or involved in any kind
of legal proceeding.
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Results of Operations
The following summary of our operations should be read in conjunction with our
unaudited financial statements for the three months ended June 30, 2021 and
2020.
Three months ended June 30, 2021 compared to three months ended June 30, 2020
Three Months Ended
June 30,
2021 2020 Changes %
Operating Expenses
Professional fees $ 5,300 $ 8,257 $ (2,957 ) (36 %)
Stock based compensation - 11,625,000 (11,625,000 ) -
Total operating expenses 5,300 11,633,257 (11,627,957 ) (100 %)
Other expenses
9,832 18,711 (8,879 ) (47 %)
Net Loss $ 15,132 $ 11,651,968 $ (11,636,836 ) (100 %)
We had no revenue for the three months ended June 30, 2021 and 2020.
Our net loss for the three months ended June 30, 2021 was $15,132 compared with
net loss of $11,651,968 for the three months ended June 30, 2020 due to the
decrease in stock based compensation expenses. During the three months ended
June 30, 2020, we incurred stock based compensation of $11,625,000 attributed to
shares issued for Chief Executive Officer's second quarter portion of the year
2020 salary.
Six months ended June 30, 2021 compared to six months ended June 30, 2020
Six months ended
June 30,
2021 2020 Changes %
Operating expenses
Professional fees $ 22,350 $ 13,407 $ 8,943 67 %
Stock based compensation - 23,250,000 (23,250,000 ) -
Total operating expenses 22,350 23,263,407 (23,241,057 ) (100 %)
Other expenses
19,562 51,200 (31,638) (62 %)
Net Loss $ 41,912 $ 23,314,607 $ (23,272,695 ) (100 %)
We had no revenue for the six months ended June 30, 2021 and 2020.
Our net loss for the six months ended June 30, 2021 was $41,912 compared with
net loss of $23,314,607 for the six months ended June 30, 2020 due to the
decrease in stock based compensation expenses. During the six months ended June
30, 2020, we incurred stock based compensation of $23,250,000 attributed to
shares issued for Chief Executive Officer's first half of the year 2020 salary.
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Liquidity and Capital
Working Capital
As of As of
June 30, December 31,
2021 2020 Changes %
Current Assets $ - $ - $ -
Current Liabilities $ 359,444 $ 205,116 $ 154,328 75 %
Working Capital Deficiency $ (359,444 ) $ (205,116 ) $ (154,328 ) 75 %
As at June 30, 2021 and December 31, 2020, our company had no cash and assets.
As at June 30, 2021, our company had total liabilities of $426,770, of which
included convertible notes payable of $153,595, accrued interest of $125,927,
promissory notes payable of $69,486 and accounts payable and accrued liabilities
of $53,662. As at December 31, 2020, our company had total liabilities of
$384,858, of which included convertible notes payable of $152,398, accrued
interest of $107,565, promissory note payable of $2,160 and accounts payable and
accrued liabilities of $55,409.
As at June 30, 2021, our company had a working capital deficiency of $359,444
compared with a working capital deficiency of $205,116 as at December 31, 2020.
The increase in working capital deficit was primarily due to an increase in
convertible notes, due to related party and accrued interest.
Cash Flows
Six months ended
June 30,
2021 2020 Changes %
Cash flows used in operating activities $ (24,100 ) $ (18,568 ) $ (5,532 ) 30 %
Cash flows provided by financing activities 24,100 18,568 5,532 30 %
Net changes in cash
$ - $ - $ - -
Cash Flow from Operating Activities
We have not generated positive cash flow from operating activities. During the
six months ended June 30, 2021, net cash used in operating activities was
$24,100 compared to $18,568 used during the six months ended June 30, 2020. Cash
flows used in operating activities during the six months ended June 30, 2021,
comprised of a net loss of $41,912, which was reduced by non-cash expenses of
$1,197 for amortization of debt discount and a net change in working capital of
$16,615. Cash flows used in operating activities during the six months ended
June 30, 2020, comprised of a net loss from of $23,314,607, which was reduced by
non-cash expenses of $36,800 for amortization of debt discount, $23,250,000 for
stock based compensation and a net change in working capital of $9,239.
Cash Flow from Investing Activities
During the six months ended June 30, 2021 and 2020, our company did not have any
investing activities.
Cash Flow from Financing Activities
During the six months ended June 30, 2021, net cash provided by financing
activities was $24,100 compared to $18,568 during the six months ended June 30,
2020. During the six months ended June 30, 2021, the Company received $24,100
for advancement from the Company's Director for paying operating expenses.
During the six months ended June 30, 2020, the Company received $18,568 for
proceeds from issuance of convertible note.
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Going Concern
As of June 30, 2021, we had an accumulated deficit of $128,768,375. We believe
that its existing capital resources may not be adequate to enable it to execute
its business plan. These conditions raise substantial doubt as to our Company's
ability to continue as a going concern. Our Company is currently exploring
different options of further developing and marketing our web hosting and data
storage services. The accompanying financial statements do not include any
adjustments that might be necessary should we be unable to continue as a going
concern. If we fail to generate positive cash flow or obtain additional
financing, when required, we may have to modify, delay, or abandon some or all
of our business plans.
Off-Balance Sheet Arrangements
We have no 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 stockholders.
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