This Management's Discussion and Analysis ("MD&A") is intended to provide an
understanding of our financial condition, results of operations and cash flows
by focusing on changes in certain key measures from year to year. This
discussion should be read in conjunction with the Condensed Consolidated
Unaudited Financial Statements contained in this Quarterly Report on Form 10-Q
and the Consolidated Financial Statements and related notes and MD&A of
Financial Condition and Results of operations appearing in our Annual Report on
Form 10-K as of and for the years ended
Cautionary Statement Regarding Forward Looking Statements
This Quarterly Report on Form 10-Q, Financial Statements and Notes to Financial Statements contain forward-looking statements that discuss, among other things, future expectations and projections regarding future developments, operations and financial conditions. All forward-looking statements are based on management's existing beliefs about present and future events outside of management's control and on assumptions that may prove to be incorrect. If any underlying assumptions prove incorrect, our actual results may vary materially from those anticipated, estimated, projected or intended. We undertake no obligation to publicly update or revise any forward-looking statements to reflect actual results, changes in expectations or events or circumstances after the date this Quarterly Report on Form 10-Q is filed.
When this report uses the words "we," "us," "our," or "FICAAR" and the
"Company," they refer to
Company History and Summary
The Company's fiscal year end is
On
Plan of Operations BUSINESS DESCRIPTION
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The quality of our product is achieved through a proprietary manufacturing process. A reverse osmosis filtering system and patent-protected infusion process ensures efficacy, purity, and taste. The efficacy of hydrogen water is backed by over 1,000 published peer reviewed studies demonstrating that hydrogen positively impacts fitness, health, lifestyle, recovery, and wellness.
Our sales strategy involves a diversified, multi-channel approach. Our products are currently on shelves in approximately 5,000+ retail stores across 20 chains in addition to our growing ecommerce presence. Our company prides itself on having a low carbon footprint, primarily due to our eco-conscious packaging and free mail-in recycling program through our partnership with Teracycle.
Our mission statement is to build a brand and corporate culture that, at its
essence, exhibits strength in oneself and in one's community. We promote a
foundation of "doing well by doing good". This foundation enables
Comparison of Three Months EndedMarch 31, 2022 to Three Months EndedMarch 31, 2021 Results of Operations Three Months ended March 31, Percent 2022 2021 Change Change Revenues$ 595,623 $ -$ 595,623 100% Gross profit 319,907 - 319,907 100% Operating expenses (931,214 ) (7,033 ) (924,181 ) 13,141% Other income (expense) (195,566 ) (2,201 ) (193,365 ) 8,785% Net loss$ (806,873 ) $ (9,234 ) $ (797,639 ) 8,638%
Net revenues for the three months ended
Gross profit for the three months ended
Total operating expenses were
Other income (expense) was
For the three months ended
Liquidity and Capital Resources
As of
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The Company does not believe its current cash balance will be sufficient to allow the Company to fund its planned operating activities for the next twelve months. The ability of the Company to continue as a going concern is dependent on the Company obtaining adequate capital to fund operating losses until it becomes profitable. If the Company is unable to obtain adequate capital, it could be forced to cease operations or substantially curtail some or all of its planned activities. These conditions raise substantial doubt as to the Company's ability to continue as a going concern. The accompanying financial statements do not include any adjustments relating to the recoverability and classification of recorded assets and classification of liabilities should the Company be unable to continue as a going concern.
As the Company continues to incur losses, achieving profitability is dependent on achieving a level of revenues adequate to support the Company's cost structure. The Company may never achieve profitability, and unless and until it does, the Company will continue to need to raise additional capital. Management intends to fund future operations through additional private or public equity offering and may seek additional capital through arrangements with strategic partners of from other sources. There can be no assurances, however, that additional funding will be available on terms acceptable to the Company, or at all. Any equity financing may be dilutive to existing shareholders, which dilution may be significant depending on the terms of the transactions.
Operating Activities:
For the three months ended
Investing and Financing Activities:
Net cash flows provided by (used) in investing and financing activities for the
three months ended
Liquidity and Capital Resource Measures:
The Company's primary source of liquidity has been from convertible loans and third party and related party loans.
Going Concern
The Company has experienced a net loss and had an accumulated deficit of
Transaction with Related Parties:
None Critical Accounting Policies
Refer to Note 2 in the Consolidated Financial Statements for a summary of recently adopted and recently issued accounting standards and their related effects or anticipated effects on our consolidated results of operations and financial condition.
Off-Balance Sheet Arrangements
We did not have any off-balance sheet arrangements that are reasonably likely to have a current or future material effect on our financial condition, revenue or expenses, results of operations, liquidity, capital expenditures or capital resources.
Inflation and Changing Prices
We do not believe that inflation nor changing prices for the three months
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