UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 or 15D of the Securities Exchange Act of 1934 for the quarterly period ended SEPTEMBER 30, 2021March 31, 2022.

☐ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the transition period from to .FROM _____TO_____.

Commission file number: 0-30695

ARVANA INC.

(Exact name of registrant as specified in its charter)

299 S. Main Street, 13th Floor, Salt Lake City, Utah 84111

(Address of principal executive offices) (Zip Code)

(801) 232-7395

(Registrant’s telephone number, including area code)

n/a

(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ☒  No ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes ☐  No ☒

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company”, and “emerging growth company” in Rule 12b-2 of the Exchange Act.

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☒  No ☐

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date. The number of shares outstanding of the issuer’s common stock, $0.001 par value (the only class of voting stock), at November 19, 2021,May 18, 2022, was 34,148,518.

TABLE OF CONTENTS

ITEM 1. FINANCIAL STATEMENTS

As used herein, the terms “Company,” “we,” “our,” “us,” “it,” and “its” refer to Arvana Inc., a Nevada corporation, unless otherwise indicated. In the opinion of management, the accompanying unaudited condensed financial statements included in this Form 10-Q reflect all adjustments (consisting only of normal recurring accruals) necessary for a fair presentation of the results of operations for the periods presented. The results of operations for the periods presented are not necessarily indicative of the results to be expected for the full year.

Arvana Inc.
Condensed Interim Balance Sheets

(Unaudited)

The accompanying notes are an integral part of these condensed interim financial statements.

Arvana Inc.
Condensed Interim Statements of Operations and Comprehensive LossIncome (Loss)

(Unaudited)

The accompanying notes are an integral part of these condensed interim financial statements.

Arvana Inc.

Condensed Interim Statements of Cash Flows

(Unaudited)

The accompanying notes are an integral part of these condensed interim financial statements.

Arvana Inc.

Supplemental Disclosure of Cash Flow Information

(Unaudited)

The accompanying notes are an integral part of these condensed interim financial statements.

Arvana Inc.

Statements of Stockholders' Deficiency

(Unaudited)

The accompanying notes are an integral part of these condensed interim financial statements.

Arvana Inc.

Notes to Condensed Interim Financial Statements

September 30,March 31, 2021

(Unaudited)

1. Nature of Business and Ability to Continue as a Going Concern

The Company was incorporated in the State of Nevada on June 16, 1977, as “Turinco, Inc.”, and on July 24, 2006, changed its name to Arvana Inc. to reflect the acquisition of a telecommunications business. We discontinued efforts related to our telecommunications business as of December 31, 2009. The Company is presently focused on evaluating business opportunities for merger or acquisition sufficient to support operations and increase stockholder value.

We entered intoOn March 17, 2016, the Company signed a non-binding memorandum of understanding on March 17, 2016, with the intent ofon acquiring a fresh food manufacturer and distributor. On November 11, 2020, we notified the acquisitionintended target that the Company was no longer interested in pursuing the acquisition of its business givendue to the delays attendant to the prospective transaction.

On May 21, 2021, the Company entered intosigned a non-binding term sheet with the intention ofintent on acquiring a multi-media platform and prospectively other businesses.platform. The term sheet required that the owner of the acquisition target first secure voting control of the Company as a pre-condition to his facilitating a transaction. The owner effectively secured voting control on June 30, 2021. On October 26, 2021, the Company entered intosigned a recission agreement and mutual release with the owner of the intended acquisition, due to beingas the parties were unable to agree on the structure of the prospective transaction.

These condensed interim financial statements have been prepared on a going concern basis, which assumes the realization of assets and the settlement of liabilities in the normal course of business.

For the nine-monththree-month period ended September 30, 2021,March 31, 2022, the Company recognized a net loss of $8,830 as a result of general administrative expenses, professional fees and realizedinterest expenses. The Company had a working capital deficiency which deficiency raisesof $110,415 as of March 31, 2022. These conditions raise substantial doubt about itsthe Company’s ability to continue as a going concern.

The World Health Organization declared coronavirus COVID-19 a global pandemic in March 2020. COVID-19 is a contagious disease that has adversely affected workforces, economies, and financial markets around the world. The Company can neither predict the duration or the magnitude of adverse results connected to COVID-19, nor can it predict the effect, if any, COVID-19 will continuehave on its search to identify a business opportunity or its ability to attract sufficient capital to sustain operations.

The Company’s present intention is to identify, evaluate and secure a business opportunity to create value for its stockholders. During this search the Company will require continued financial support from stockholders and creditors until it is able to generate its ownnet cash flow from operations.

While the Company is confident that a business opportunity will be identified, the insufficiency of its financial resources casts substantial doubt on whether it will be able to fulfill this objective.

Failure to obtain the ongoing support of stockholders and creditors may indicate that the preparation of these financial statements on a going concern basis is inappropriate, in which case the Company’s assets and liabilities would need to be recognized at their liquidation values. The Company’s financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts and liabilities that might arise from this uncertainty.

Arvana Inc.

Notes to Condensed Interim Financial Statements

September 30,March 31, 2021

(Unaudited)

2. Summary of Significant Accounting Policies

a) Basis of presentation

The Company is in the process of evaluating business opportunities and has minimal operating expenses. OurThe Company’s fiscal year end is December 31. The accompanying condensed interim financial statements of Arvana Inc. for the three and nine months ended September 30,March 31, 2022, and 2021, and 2020, have been prepared in accordance with accounting principles generally accepted in the United States (“US GAAP”) for financial information with the instructions to Form 10-Q and Regulation S-X. The condensed interim financial statements and notes appearing in this report should be read in conjunction with our audited financial statements and related notes thereto, together with Management’s Discussion and Analysis of Financial Condition and Results of Operations, contained in our Annual Report on Form 10-K for the fiscal year ended December 31, 2020,2021, as filed with the Securities and Exchange Commission (“Commission”) on April 9, 2021.21, 2022. Results are not necessarily indicative of those which may be achieved in future periods.

b) Estimates

The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. These estimates include the recognition of deferred tax assets based on the change in unrecognized deductible temporary tax differences.

c) Financial instruments

The Company uses the following methods and assumptions to estimate the fair value of each class of financial instruments for which it is practicable to estimate such values:

Cash - the carrying amount approximates fair value because the amounts consist of cash held at a bank.

Accounts payable and accrued liabilities, convertible loan, loans payable and amounts due to related parties - the carrying amount approximates fair value due to the short-term nature of the obligations.

The estimated fair values of the Company's financial instruments as of September 30, 2021March 31, 2022, and December 31, 20202021, are as follows:

Arvana Inc.

Notes to Condensed Interim Financial Statements

September 30,March 31, 2021

(Unaudited)

2. Summary of Significant Accounting Policies (continued)

c) Financial instruments (continued)

The following table presents information about the assets that are measured at fair value on a recurring basis as of September 30, 2021,March 31, 2022, and indicates the fair value hierarchy of the valuation techniques the Company utilized to determine such fair value. In general, fair values determined by Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets. Fair values determined by Level 2 inputs utilize data points that are observable such as quoted prices, interest rates and yield curves. Fair values determined by Level 3 inputs are unobservable data points for the asset or liability, and included situations where there is little, if any, market activity for the asset:

The fair value of cash is determined through market, observable, and corroborated sources.

d) Recent accounting pronouncements

New and amended standards adopted by the Company

The followingwere no new and amended standards were adopted by the Company for the first time in this reporting period.

In June 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Updates ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, requiring certain changes to the recognition and measurement as well as disclosure of incurred and expected credit losses. In November 2018, the FASB issued ASU 2018-19 to clarify certain aspects of the new current expected credit losses impairment model in ASU 2016-13. ASU 2018-19 points out that operating lease receivables are within the scope of ASC 842 rather than ASC 326. The standard became effective for the Company beginning January 1, 2020. The adoption of this standard did not have a material impact on the Company’s results of operations, financial condition, cash flows, and financial statement disclosures.

In August 2018, the Financial Accounting Standards Board (FASB) issued Accounting Standards Updates ASU 2018-13, which changes the fair value measurement disclosure requirements of ASC 820. The standard became effective for the Company beginning January 1, 2020. The amendments in this ASU are the result of a broader disclosure project called FASB Concepts Statement, Conceptual Framework for Financial Reporting — Chapter 8: Notes to Financial Statements. The adoption of this standard did not have a material impact on the Company’s results of operations, financial condition, cash flows, and financial statement disclosures.

Arvana Inc.

Notes to Condensed Interim Financial Statements

September 30, 2021

(Unaudited)

3. Loans Payable

As of September 30, 2021,March 31, 2022, the Company had loans outstandingreceived a loan of $nil $015,500 (December 31, 20202021 - $522,55215,500: €225,000; CAD$ 60,000; $199,600)) from stockholders; loansa stockholder and a loan of $200300 (December 31, 20202021 – $130,677300: CAD$ 27,600; $109,000)) from a related party and loans of $nil 0 (December 31, 2020 – $74,664: CAD$ 10,000; $66,810) from unrelated third parties.party. The majority of the historical loans borecurrent stockholder loan outstanding bears interest at 65% per annum while $92,935 of the loans were non-interest bearing. The historical loans were made in 3 different currencies, Euros, Canadian Dollars and US Dollars.annum. The balance of accrued interest of $nil $0279 and $515,263 85is included in accounts payable and accrued expensesliabilities at September 30, 2021March 31, 2022, and December 31, 2020,2021, respectively. Interest expense recognized on these loansthis loan was $nil $0194 for the three months ended September 30, 2021,March 31, 2022, compared to $10,623 0 nil for the three months ended September 30, 2020,March 31, 2021, respectively. Interest expense recognized on these loans was $16,427 for the nine months ended September 30, 2021, compared to $31,356 for the nine months ended September 30, 2020, respectively.

On March 30, 2020, loans of $60,000 and corresponding accrued interest of $37,104 were settled by the issuance of 971,040 common shares pursuant to three debt settlement agreements dated March 3, 2020, March 4, 2020 and March 4, 2020, respectively.

During the periodyear ended September 30,December 31, 2021, the Company extinguished $50,000 in loans payable to stockholders and corresponding accrued interest of $38,945.

On July 23, 2021, loans payable to stockholders of $480,960, and $74,762, respectively, loans payable to a related party of $130,947, accrued interest of $361,283 on loans payable to stockholders, and accrued interest of $89,124 on loans payable to a related party were settled by the issuance of 21,127,123 common shares pursuant to three debt settlement agreements dated April 1, 2021, and five debt settlement agreements dated June 30, 2021.

On July 23, 2021, accounts payable and accrued liabilities of $262,056 were settled by the issuance of 6,551,392 common shares pursuant to two debt settlement agreements dated June 30, 2021.

4. Stock Options

At September 30, 2021,March 31, 2022, and December 31, 2020,2021, there were 0 stock options outstanding. NaN options were granted, exercised, or expired during the period ended September 30, 2021March 31, 2022, and during the year ended December 31, 2020.

2021.

5. Common stock

During the ninethree months ended September 30,March 31, 2022, the Company issued nil shares. During the year ended December 31, 2021, the Company issued 29,537,848 shares of its restricted common stock with a fair value of $14,065,923 to settle $662,251 in accounts payable and accrued liabilities, $107,800 in convertible loans, $480,960 in loans payable to stockholders, $130,947in loans payable to related party, $74,762 in loans payable, and $149,124in amounts due to related parties (Notes 3, 7, 8, 9, 10).

During the nine months ended September 30, 2020, the Company issued 971,040 shares of its common stock valued at $0.10 a share to settle $60,000 in loans and $37,104 in interest (Note 3). During the year ended December 31, 2020, the Company issued 3,576,640 common shares.

Arvana Inc.

Notes to Condensed Interim Financial Statements

September 30,March 31, 2021

(Unaudited)

6. Segmented Information

The Company has no reportable segments.

7. Related Party Transactions and Amounts Due to Related Parties

At September 30, 2021,March 31, 2022, and December 31, 2020,2021, the Company had amounts due to related parties of $35,29837,038 and $352,65134,194, respectively.

A company controlled by our chief executive officer was owed $35,29837,338 at September 30, 2021,March 31, 2022, and $3,48734,494 at December 31, 2020.2021. The amount due bears no interest, is unsecured, and hshas no fixed terms for repayment. The Company incurred consultingadvisory fees of $55,4612,844 (2020(March 31, 2021 - $11,8884,569) that accrued to thata company controlled by our chief executive officer during the ninethree months ended September 30, 2021.

March 31, 2022.

A former chief executive officer and director was owed $nil 0 at September 30, 2021, and $60,000 at December 31, 2020, for services rendered during 2007, that was settled on July 23, 2021 by the issuance of 1,500,000 common shares withassigned to a fair valuerelated corporation an unpaid amount of $714,300161,234 resulting in a loss on debt settlement(CAD $202,759) as of $654,300, pursuant toMarch 31, 2022, as per a debt settlementassignment agreement dated effective June 30, 2021.

A former director and related entities were owed $nil 0 at September 30, 2021, and $579,088 at December 31, 2020 for loans, services rendered, accrued interest, and accounts payable and accrued liabilities.

January 1, 2012.

During the periodyear ended September 30,December 31, 2021, $220,071 ($130,947 in loans payable to related party and $89,124 in accrued interest on loans) was settled on July 23, 2021, by the issuance of 436,492 shares with a fair value of $207,857207,421 resulting in a gain on debt settlement of $12,21312,650, pursuant to a debt settlement agreement dated April 1, 2021

2021.

During the periodyear ended September 30,December 31, 2021, amounts due to the thea former director and related entities of $369,888 (2020 - $Nil$ 0) Nil) were forgiven pursuant to two debt forgiveness agreements dated June 30, 2021, that forgave $206,302 (Note 9) and $163,586 (Note 9) respectively that was recorded as other income.

Arvana Inc.

Notes to Condensed Interim Financial Statements

September 30, 2021

(Unaudited)

8. Convertible Loans

On May 18, 2016, the Company issued a convertible promissory note to CaiEa lender that accrued 10% per annum, in exchange for $50,000, initially due on November 17, 2017.2017. The note was convertible into the Company’s common stock, in whole or in part, at any time prior to maturity at the option of the holder, at $0.20 per share. Since the conversion price was lower than the closing share price on the issuance date, a beneficial conversion feature was recognized as a discount against the debt. The maturity date of the note was extended by amendment, to March 31, 2021,, while all other terms of the note remained unchanged. The Company and CaiEthe lender agreed to a debt settlement agreement to extinguish these loans and accrued interest by the issuance of common shares. During the three and nine months ended September 30,March 31, 2022, and 2021, and 2020, 0 discount was amortized as interest expense. Interest expense recognized on this loan was $nil 0 for the three months ended September 30, 2021,March 31, 2022, compared to $1,250 for the three months ended September 30, 2020. Interest expense recognized on this loan was $1,250 for the nine months ended September 30, 2021, compared to $3,750 for the nine months ended September 30, 2020.March 31, 2021. As at September 30, 2021,of March 31, 2022, and December 31, 2020,2021, the balance of the note was $nil and $nil, respectively. 0 and $50,000, respectively.

On October 12, 2018, the Company issued a convertible note to CaiEa lender that accrued 10% per annum, in exchange for a series of loans that totaled $57,800 initially due on October 11, 2019. The note was convertible into the Company’s common stock, in whole or in part, at any time prior to maturity at the option of the holder at $0.20 per share. Since the conversion price was lower than the closing share price on the issuance date, a beneficial conversion feature was recognized as a discount against the debt. The maturity date of the note was extended by amendment, to March 31, 2021, while all other terms of the note remained unchanged. The Company and CaiEthe lender agreed to a debt settlement agreement to extinguish these loans and accrued interest by the issuance of common shares. During the three months ended September 30,March 31, 2022, and 2021, and 2020, $nil 0 and $14,450 of the discount was amortized as interest expense and during the nine months ended September 30, 2021 and 2020, $nil 0 and $43,350 of the discount was amortized as interest expense. Interest expense recognized on this loan was $nil 0 for the three months ended September 30, 2021,March 31, 2022, compared to $1,445 for the three months ended September 30, 2020. Interest expense recognized on this loan was $1,445 for the nine months ended September 30, 2021, compared to $4,335 for the nine months ended September 30, 2020.March 31, 2021. As at September 30, 2021of March 31, 2022 and December 31, 2020,2021, the balance of the note was $nil and $nil, respectively. 0 and $57,800, respectively.

On July 23, 2021, CaiE settled a total of $146,712 corresponding to convertible loans of $107,800, and accrued interest on convertible loans of $38,912 by the issuance of 359,333 common shares pursuant to a debt settlement agreement dated April 1, 2021.

9. Other IncomeSubsequent Events

The Company evaluated its March 31, 2022, financial statements for subsequent events through the date the financial statements were issued. The Company is not aware of any subsequent events which would require recognition or disclosure in the financial statements except as provided below:

During the period ended September 30, 2021,On April 19, 2022, the Company recognized other income in the amountsecured a loan of $458,83320,244 corresponding to: (1) debt forgiveness of $206,302 includedpursuant to a credit agreement dated November 15, 2021, as amended, and issued a credit note in amounts dueeven amount that was provided to related parties (Note 7); (2) debt forgiveness of $163,586 included in accounts payable and accrued liabilities (Note 7); and (3) extinguishment of $88,945 (Note 3) in loans and accrued interest expense.

the lender.

Item 2.  Management's Discussion and Analysis of Financial Condition and Results of Operations.

FORWARD LOOKING STATEMENTS

This Management’s Discussion and Analysis of Financial Condition and Results of Operations and other parts of this quarterly report contain forward-looking statements that involve risks and uncertainties. Forward-looking statements can also be identified by words such as “anticipates,” “expects,” “believes,” “plans,” “predicts,” and similar terms. Forward-looking statements are not guarantees of future performance and our actual results may differ significantly from the results discussed in the forward-looking statements. Factors that might cause such differences include but are not limited to those discussed in the subsection entitled Forward-Looking Statements and Factors That May Affect Future Results and Financial Condition below. The following discussion should be read in conjunction with our financial statements and notes thereto included in this report. Our fiscal year end is December 31. All information presented herein is based on the three and nine months ended September 30, 2021March 31, 2022, and September 30, 2020.

March 31, 2021.

Overview

The Company was incorporated in the State of Nevada on June 16, 1977, as “Turinco, Inc.” to engage in any legal undertaking. On July 24, 2006, the Company’s changed its name from Turinco, Inc. to Arvana Inc. on closing the acquisition of Arvana Networks, Inc., a telecommunications business. We discontinued efforts related to that business as of December 31, 2009. Our present activities are focused on evaluating business opportunities that are sufficient to support operations and increase stockholder value.

Our office is located at 299 S. Main Street, 13th Floor, Salt Lake City, Utah 84111, and our telephone number is (801) 232-7395. AA Registered Agents, 4869 Nightwood Court, Las Vegas, Nevada 89149, is our registered agent in the State of Nevada.

The Company is registered with the Commission and traded on the OTC Markets Group, Inc.’s Pink Sheets Current Information over the counter market platform under the symbol “AVNI.”

Company

The Company entered intosigned a non-binding term sheet on May 21, 2021, with Mr. Alkiviades Davida prospective seller and our controlling stockholder with the intention of acquiring a multi-media platform and prospectively other businesses owned or controlled by Mr. David.platform. The term sheet required that our controlling stockholder grant voting control over the Company to Mr. Davidthe prospective seller as a pre-condition to histhe seller facilitating athe transaction. On June 30, 2021, Mr. Davidthe seller effectively secured voting control over the Company.control. Due to a disgreementdisagreement over the structure of the intended transaction, the Company entered intosigned a recission agreement and mutual release with Mr. Davidthe seller on October 26, 2021. The agreement to abandon the intentions of the term sheet included Mr. David’sthe seller’s revocation of the proxies granted to him, which action returnedreverted voting control of the Company to our controlling stockholder, and led to the resignation of two Company directors, and the re-appointment of two of our former directors.

On March 17, 2016, we entered intosigned a non-binding memorandum of understanding with CaiE Food Partnership Ltd. (“CaiE”) for the purposeowners of acquiring ita fresh foods manufacturing and distribution business that was identified as a wholly-owned subsidiary. CaiE is in the business of manufacturing and distributing fresh Dim Sum food products from a facility based in Sparks, Nevada. While CaiEprospective acquisition The target loaned the Company $174,610 over nearly five years to sustain our operations itbut was unable to deliver the information necessary to complete the transaction. On November 11, 2020, CaiEthe target was notified that the Company would no longer pursue the acquisition of its business. Effective April 1, 2021, the Company entered into a debt settlement agreement pursuant to which all amounts due to CaiEthe target were extinguished in exchange for shares of the Company’s restricted common stock.

Plan of Operation

Our present activities are focused on evaluatingsecuring a business opportunities that are sufficientready to support operationsthe attendant obligations and increase stockholder value. While this process remains in the discovery phase, the Company will continue to lookopportunities of being a public company. Management looks to its stockholders and creditors for sufficient financial support to sustain operations though wewhile this search is underway. We have no assurance that our stockholders or creditors will respond positively to the Company’sour efforts.

Results of Operations

During the three and nine months ended September 30, 2021,March 31, 2022, the Company satisfied periodic public disclosure requirements while it continued itsthe search for a suitable business enterpriseopportunity that might enhance stockholderbring value and executed a non-binding term sheet with Mr. David.

to its stockholders.

Operations for the three and nine months ended September 30,March 31, 2022, and 2021, and 2020, are summarized in the following table.

Net LossesLoss

Net loss for the three-month periodthree months ended September 30, 2021,March 31, 2022, was $12,507,367$8,830 as compared to a net loss of $67,591$2,259 for the three months ended March 31, 2021, an increase of 291%. While general and administrative expenses, professional fees and interest expenses decreased in the current three-month prior period, ended September 30, 2020. Thethe resultant net increase in net loss over the comparative three-month periods can be attributed to loss on debt settlements, and professional fees, offset by a decrease in general administrative expenses, the eliminationlack of interest expense and aany foreign exchange gain overin the period that offset operating expenses in the prior comparable three-month period. The lossgain on debt settlements is due to the settlement values for stock issued that were less than the market value of the stock on the settlement dates, while the increase in professional fees is the result of amounts accruedforeign exchange in the preparation of coincident settlement documentation and in the conduct of requisite due diligence in relation to a prospective acquisition. The elimination of interest expense is the result of the debt settlements, and the transition from foreign exchange loss to foreign exchange gainthree-month period ended March 31, 2021, is due to a decrease in the value of foreign currencies against the US dollar, thatwhich development positively impacts the cost of expenses paidpayable in foreign currencies.

Net loss for the nine-month period ended September 30, 2021, was $12,089,518 as compared to net loss of $109,440 for the nine-month period ended September 30, 2020. The increase in net loss over the comparative nine-month periods can be attributed to loss on debt settlements, professional fees, and interest expense, offset by other income, a decrease in general administrative expenses, and a foreign exchange gain over the comparable prior nine-month period. The loss on debt settlements is due to the settlement values for stock issued that were less than the market value of the stock on the settlement dates, the increase in professional fees is the result of amounts accrued in the preparation of coincident settlement documentation and in the conduct of requisite due diligence in relation to a prospective acquisition, while the interest expense reflects the expense of debt obligations prior to settlement. Other income is the result of debt forgiveness agreements, and the transition from foreign exchange loss to foreign exchange gain is due to a decrease in the value of foreign currencies against the US dollar that impacts the cost of expenses paid in foreign currencies.

The CompanyWe did not generate revenue during either of these periodsthis period and expectsexpect to continue to incur losses over the next twelve months until such time as it is able to secure a business that generates income.

months.

Capital Expenditures

The Company expended no amounts on capital expenditures for the nine-monththree-month period ended September 30, 2021.March 31, 2022.

Liquidity and Capital Resources

Since inception, we have experienced significant changes in liquidity, capital resources, and stockholders’ deficiency.

The Company had assets of $19$3,118 in cash as of September 30, 2021, withMarch 31, 2022, and a working capital deficit of $74,655,$110,415, as compared to assets of $4,994$3,340 in cash as of December 31, 2020, with2021, and a working capital deficit of $2,051,060. Stockholders'$101,585. Net stockholders' deficit in the Company was $74,655 at September 30, 2021,$110,415 as of March 31, 2022, as compared to a net stockholder’s deficit of $2,051,060 at$101,585 as of December 31, 2020.

2021.

Cash Used in Operating Activities

CashNet cash flow used in operating activities for the nine-monththree-month period ended September 30, 2021March 31, 2022, was $21,100$222 as compared to net cash flow used in operating activities of $31,435$4,087 for the nine-monththree-month period ended September 30, 2020. Changes inMarch 31, 2021. Net cash used in operating activities in the current nine-monthprior period can be attributed to a number of book expense items that do not affect the total amount relative to actual cash used, such as unrealized foreign exchange other income, loss on debt settlements and interest expense. Balance sheet accounts that actually affect cash but are not income statement related items that are added or deducted to arrive at net cash used in operating activities, include accounts payable, accrued liabilities and amounts due to related parties.

We expect to continue to use net cash flow in operating activities over the next twelve months or until such time as the Company can generate sufficient revenue to offset the cost of operating activities.

Cash Used in Investing Activities

CashNet cash used in investing activities overfor the nine-monththree-month periods ended September 30,March 31, 2022, and March 31, 2021, and September 30, 2020, was $nil.