Cautionary Statement Regarding Forward-Looking Statements
Certain statements contained in this Quarterly Report constitute "forward-looking statements." These statements, identified by words such as "plan," "anticipate," "believe," "estimate," "should," "expect" and similar expressions include the Company's expectations and objectives regarding its future financial position, operating results and business strategy. Forward-looking statements involve known and unknown risks, uncertainties, assumptions and other factors that may cause its actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, general economic conditions particularly related to demand for the Company's products and services, changes in business strategy, competitive factors (including the introduction or enhancement of competitive services), pricing pressures, changes in operating expenses, fluctuation in foreign currency exchange rates, inability to attract or retain consulting, sales and/or development talent, changes in customer requirements, and/or evolving industry standards, as well as those factors discussed in the section titled "Part II, Item 1A. Risk Factors" in this Quarterly Report.
Forward looking statements are based on a number of material factors and assumptions, including the availability and final receipt of required government licenses, that sufficient working capital is available to complete the proposed activities, that contracted parties provide goods and/or services on the agreed time frames. While the Company considers these assumptions may be reasonable based on information currently available to it, they may prove to be incorrect. Actual results may vary from such forward-looking information for a variety of reasons, including but not limited to risks and uncertainties disclosed in the section titled "Risk Factors" in this Quarterly Report.
The Company intends to discuss in its Quarterly Reports and Annual Reports any
events or circumstances that occurred during the period to which such documents
relate that are reasonably likely to cause actual events or circumstances to
differ materially from those disclosed in this registration statement. New
factors emerge from time to time, and it is not possible for management to
predict all of such factors and to assess in advance the impact of each such
factor on its business or the extent to which any factor, or combination of such
factors, may cause actual results to differ materially from those contained in
any forwarding looking statement. You are advised to carefully review the
reports and documents that the Company files from time to time with the
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OVERVIEW
The Company is a development stage, technology company involved in the entertainment industry. Currently developing SPRT MTRX, management is positioning the Company to take advantage of the exciting and rapidly growing Sports and Gaming sectors.
PLAN OF OPERATIONS SPRT MTRX
SPRT MTRX is a gaming app, available in both iPhone and Android versions, in which players bid on the final scores of NHL, NBA and NFL games. The events are organized as "Challenges" and cover multiple games over one day. A cash prize is awarded to the player who receives the most points for correctly bidding on the final scores of the games included in the Challenge. The system for bidding on the final scores is unique in the gaming industry.
Business Model. The business model entails offering cash prizes to introduce and attract players to the game, developing a large contingent of users and delivering advertisements. This model, free to play (F2P), has proven popular among gamers as the lure of free money is a very attractive inducement.
Development. SPRT MTRX is currently Active. The Company will continue to develop and enhance the SPRT MTRX through 2021 by adding additional functionality and more sports such as MLB and EPL but does not anticipate generating any significant revenue from SPRT MTRX in fiscal 2021.
Boxing.com FEDERATION
The Company terminated developing
The Company does not believe it has the necessary cash requirements for the next 12 months without having to raise additional funds.
RESULTS OF OPERATIONS
The following selected financial data was derived from the Company's unaudited
condensed interim consolidated financial statements for the periods ended
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Three months ended Percentage Increase/ March 31, 2021 March 31, 2020 (Decrease) Operating expense (income) Domain content and registration $ 3,072 $ 3,037 1.2 General and administrative 12,110 15,932 (24.0 ) Interest expense 51 51 0.0 Management fees 32,315 32,841 (1.6 ) Marketing 34,459 13,470 155.8 Professional fees 7,404 15,120 (51.0 ) Transfer agent and regulatory 1,560 4,140 (52.3 ) Website development 958 1,480 (35.3 ) Stock based compensation 95,722 - n/a Total operating expenses $ 187,651 86,071 118.2 Fair value change of equity investments 138,226 (66,403 ) 278.7 Gain on sale of license - (351,134 ) n/a Gain on domain name sale (913,246 ) - n/a Net income for the period $ 587,369 $ 331,466 473.7 Results of Operation Revenue
The Company did not recognize recurring revenues during the three-month period
ended
At
Operating Expenses
Operating expenses for the three-month period ended
The Company recorded a net gain of
On
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Liquidity and Capital Resources
At
The Company anticipates that the costs of developing SPRT MTRX will be significantly greater than its current financial resources. The Company does not believe that it has the necessary cash requirements for the next 12 months without having to raise additional funds.
The Company does not anticipate purchasing any plant or significant equipment in the immediate future.
OFF-BALANCE SHEET ARRANGEMENTS
The Company has no significant off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on its financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to shareholders.
CRITICAL ACCOUNTING POLICIES
The Company reviews individual domain names in the portfolio for potential impairment throughout the fiscal year in determining whether a particular URL should be renewed. Impairment is recognized for names that are not renewed. The Company performs a qualitative assessment of the portfolio of domain names in the fourth quarter of each year, to determine whether it is more likely than not that the fair market value of a domain name is less than its carrying amount. As part of the assessment, certain qualitative factors are considered, including macro-economic conditions, industry and market conditions, non-renewal of names, as well as other factors. If there are indications of impairment following the qualitative impairment testing, further quantitative impairment testing would be necessary. When it is determined that the fair value of a domain name is less than it's carrying amount, impairment is recognized.
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RECENT ACCOUNTING PRONOUNCEMENTS
There are no new accounting pronouncements that materially impact the Company's condensed consolidated interim financial statements.
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