MANAGEMENT DISCUSSION AND ANALYSIS
THE FOLLOWING DISCUSSION SHOULD BE READ IN CONJUNCTION WITH OUR AUDITED
CONSOLIDATED FINANCIAL STATEMENTS AND NOTES THERETO INCLUDED HEREIN.
THIS DISCUSSION CONTAINS FORWARD-LOOKING STATEMENTS, SUCH AS STATEMENTS RELATING TO OUR FINANCIAL CONDITION, RESULTS OF OPERATIONS, PLANS, OBJECTIVES, FUTURE PERFORMANCE AND BUSINESS OPERATIONS. THESE STATEMENTS RELATE TO EXPECTATIONS CONCERNING MATTERS THAT ARE NOT HISTORICAL FACTS. THESE FORWARD-LOOKING STATEMENTS REFLECT OUR CURRENT VIEWS AND EXPECTATIONS BASED LARGELY UPON THE INFORMATION CURRENTLY AVAILABLE TO US AND ARE SUBJECT TO INHERENT RISKS AND UNCERTAINTIES. ALTHOUGH WE BELIEVE OUR EXPECTATIONS ARE BASED ON REASONABLE ASSUMPTIONS, THEY ARE NOT GUARANTEES OF FUTURE PERFORMANCE AND THERE ARE A NUMBER OF IMPORTANT FACTORS THAT COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE EXPRESSED OR IMPLIED BY SUCH FORWARD-LOOKING STATEMENTS. BY MAKING THESE FORWARD-LOOKING STATEMENTS, WE DO NOT UNDERTAKE TO UPDATE THEM IN ANY MANNER EXCEPT AS MAY BE REQUIRED BY OUR DISCLOSURE OBLIGATIONS IN FILINGS WE MAKE WITH THE SECURITIES AND EXCHANGE COMMISSION UNDER THE FEDERAL SECURITIES LAWS. OUR ACTUAL RESULTS MAY DIFFER MATERIALLY FROM OUR FORWARD-LOOKING STATEMENTS.
THE INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM'S REPORT ON THE COMPANY'S
FINANCIAL STATEMENTS AS OF
PLAN OF OPERATIONS
Auto Parts Division:
The auto parts business is a phenomena that must be well understood before plan of operation is discussed. Auto parts are bought or sold when there is a need for them. Reducing price or encouraging customers to "buy one and get one free" is not applicable in this line of business. Thus the list price of the parts are more or less firm and if they are priced/listed in line with the prices quoted by other competitors they do sell at the listed price. The only uncertain element like in pharmaceutical industry is that they are sold when needed but must be readily available when need emerges. These auto parts do not have any shelf life, these are neither subject to change in fashion nor are perishable and they do eventually sell.
Keeping the above fact in mind, the management has discovered that the greater
the inventory than the greater is the probability that it would generate sales.
An in-house analysis by management has revealed that approximately 25% of the
inventory in hand sells on an annual basis. It was therefore imperative that the
inventory be increased to MSRP cruising level of
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the book value of
FFLO has raised its bar to build inventory to MSRP of
During the year 2021, there were not enough automobiles available for dismantling as the prices of end of life and wrecked vehicles have shot up significantly. Almost by 100% while the price of used parts have remained the same.
Having received the letter of intent from a bonafide buyer the Company began sourcing scrap metal for export and after nearly six month of vigorous efforts concluded that none of the existing processors were prepared to offer the shredded steel. The Company was already processing scrap metal but in very limited quantities which were not enough for export trade.
The management began to work on expanding its own scrap metal processing
capabilities and upon getting a reconfirmation of zoning from the
Upon the news being made public, the Company has received from other qualified
buyer abroad "expression of interest" to purchase scrap metal. The annual sales
of scrap metal are expected to exceed
RESULTS OF OPERATIONS
FOR THE YEAR ENDED
During the year ended
During the year ended
During the year ended
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LIQUIDITY
At
At
SHORT TERM
On a short-term basis, the Company has generated marginal revenues sufficient to cover operations. For long term needs the Company will be dependent on receipt, if any, from the growth in sales.
CAPITAL RESOURCES
The Company's capitalization is 100,000,000 common shares with a par value of
NEED FOR ADDITIONAL FINANCING
The Company does not have capital sufficient to meet its expansion Capital needs. The Company will have to seek loans or equity placements to cover such cash needs.
No commitments to provide additional funds have been made by the Company's management or other stockholders. Accordingly, there can be no assurance that any additional funds will be available to the Company to allow it to cover the Company's expansion budget.
The Company has completed of a Private Placement Memorandum (PPM) under rule 506
(c) of the SEC Act of 1933 for a sum of Nineteen Million Five Hundred Thousand
Dollars
SIGNIFICANT ACCOUNTING POLICIES
REVENUE RECOGNITION
The Company recognizes revenue on arrangements in accordance with
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EARNINGS PER SHARE
The Company has adopted ASC 260-10-50, EARNINGS PER SHARE, which provides for
calculation of "basic" and "diluted" earnings per share. Basic earnings per
share includes no dilution and is computed by dividing net income or loss
available to common shareholders by the weighted average common shares
outstanding for the period. Diluted earnings per share reflect the potential
dilution of securities that could share in the earnings of an entity. Basic and
diluted losses/profits per share were the same at the reporting dates as there
were no common stock equivalents outstanding at
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