ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following discussion should be read in conjunction with our financial statements, including the notes thereto, appearing elsewhere in this annual 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. Our audited financial statements are stated in United States Dollars and are prepared in accordance with United States Generally Accepted Accounting Principles.
Results of Operations
The Company has incurred losses since inception resulting in an accumulated deficit of $2,222,466 as of February 28, 2025. Our financial statements have been prepared assuming that we will continue as a going concern and, accordingly, do not include adjustments relating to the recoverability and realization of assets and classification of liabilities that might be necessary should we be unable to continue in operation.
We expect we will require additional capital to meet our long-term operating requirements, if and when we acquire any assets or a business. We expect to raise additional capital through, among other things, the sale of equity or debt securities.
Fiscal year ended February 28, 2025 compared to the fiscal year ended February 29, 2024
Revenue
We did not recognize any revenue for the years ended February 28, 2025 and February 29, 2024.
Operating Expenses
General and administrative expenses were $203,734 for the year ended February 28, 2025, compared to $199,426 for the year ended February 29, 2024, an increase of only $4,308 or 2.2%. In the current year, we incurred $144,000 of expense from our service agreement with Anvi Global Inc. (previously with Strategic-IT Group Inc) (Note 4), professional fees of $35,792, OTC fees of $15,700, transfer agent fees of $1,300 and other general expenses of $6,942. In the prior period, we incurred $144,000 of expense from our service agreement with Strategic-IT Group Inc, professional fees of $27,614, travel expense of $769, OTC fees of $15,100, transfer agent fees of $1,100 and other general expenses of $10,843.
Other income
For the year ended February 28, 2025, we had no other income or expenses. For the year ended February 29, 2024, we recognized a gain on forgiveness of debt of $14,051.
Net Loss
Our net loss for the year ended February 28, 2025, was $203,734 compared to $185,375 for the year ended February 29, 2024.
Liquidity and Capital Resources
Cash Flows from Operating Activities
We have not generated positive cash flows from operating activities. For the year ended February 28, 2025, net cash flows used in operating activities was $54,591 compared to $69,018 in the prior year.
Cash Flows from Financing Activities
We have financed our operations primarily from advances from our CEO. For the year ended February 28, 2025, we received $54,800 from our CEO compared to $68,785 in the prior year.
Off-Balance Sheet Arrangements
We have not entered into any off-balance sheet arrangements and do not have any holdings in variable interest entities.
Critical Accounting Policies and Estimates
Refer to Note 2 of our financial statements contained elsewhere in this Annual Report for a summary of our critical accounting policies and recently adopted and issued accounting standards.
PLAN OF OPERATION AND FUNDING
We have no lines of credit or other bank financing arrangements capital and generate revenues to meet long-term operating requirements. If and when we commence any operations, 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 do not currently engage in enough business activities that provide cash flow. During the next twelve months we anticipate incurring costs related to:
filing of Exchange Act reports, and
costs relating to developing our business plan
MATERIAL COMMITMENTS
As of the date of this Annual Report, we do not have any material commitments.
GOING CONCERN
The independent auditors' report accompanying our February 28, 2025 and February 29, 2024 financial statements contains an explanatory paragraph expressing substantial doubt about our ability to continue as a going concern. The financial statements have been prepared "assuming that we will continue as a going concern," which contemplates that we will realize assets and satisfy liabilities and commitments in the ordinary course of business.