Director Compensation
For the three months ended May 31, 2022, the company incurred $0 of director compensation expense compared to $48,000 for the three months ended May 31, 2021. During the prior period we issued common stock to two of our directors for total non-cash stock compensation of $48,000.
Other Income/Expense
We had no other income or expense for three months ended May 31, 2022. For the three months ended May 31, 2021, we recognized a gain of forgiveness of debt of $66,747.
Net Loss
For the three months ended May 31, 2022, we had a net loss of $38,401 compared to $18,648 for the three months ended May 31, 2021.
Liquidity and Capital Resources
Operating Activities
For the three months ended May 31, 2022, the company used $27,314 in operating activities compared to $52,277 for the three months ended May 31, 2021.
Financing Activities
During the three months ended May 31, 2022, we neither received nor used any funds for financing activities. During the three months ended May 31, 2021, we received $240,000 from the sale of common stock, a cash advance from our CEO of $3,000 and $39,994 from members of the prior management. We also received $3,581 from another party to assist with general operating expenses.
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 investors.
Critical Accounting Policies
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Note 2 to the Financial Statements describes the significant accounting policies and methods used in the preparation of the Financial Statements. Estimates are used for, but not limited to, contingencies and taxes. Actual results could differ materially from those estimates. The following critical accounting policies are impacted significantly by judgments, assumptions, and estimates used in the preparation of the Financial Statements.
Recent Accounting Pronouncements
We have reviewed other recently issued accounting pronouncements and plan to adopt those that are applicable to us. We do not expect the adoption of any other pronouncements to have an impact on our results of operations or financial position.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.
We are a smaller reporting company as defined by Rule 12b-2 of the Exchange Act and, as such, are not required to provide the information under this Item.