TMCnet News
GILAX, CORP. - 10-K - Management's Discussion and Analysis of Financial Condition and Results of Operations(Edgar Glimpses Via Acquire Media NewsEdge) 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. 4 RESULTS OF OPERATIONS We have incurred recurring losses to date. 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. We expect to raise additional capital through, among other things, the sale of equity or debt securities. FISCAL YEAR ENDED APRIL 30, 2014 COMPARED TO FISCAL YEAR ENDED APRIL 30, 2013. Our net loss for the fiscal year ended April 30, 2014 was $108,101 compared to a net loss of $28,750 for the fiscal year ended April 30, 2013. During fiscal year ended April 30, 2014, the Company did not generate any revenue. During the fiscal year ended April 30, 2014, we incurred general and administrative expenses of $108,101 compared to $28,750 in general and administrative expenses incurred during the fiscal year ending April 30, 2013. Expenses incurred during fiscal year ended April 30, 2014 compared to the fiscal year ended April 30, 2013 increased primarily due to the increased scale and scope of business operations. General and administrative expenses generally include corporate overhead, financial and administrative contracted services, marketing, and consulting costs. The weighted average number of shares outstanding was 3,230,000 for the fiscal year ended April 30, 2014 compared to 2,785,616 for the fiscal year ended April 30, 2013. LIQUIDITY AND CAPITAL RESOURCES FISCAL YEAR ENDED APRIL 30, 2014 As of April 30, 2014, our current assets were $276 and our total liabilities were $113,069. As of April 30, 2014, current assets were entirely of $276 in cash. As of April 30, 2014, total liabilities were comprised of $17,871 from an advance from a former director, $81,840 in a loan from a shareholder, $2,000 in accounts payable related party, and $11,358 in accounts payable. Stockholders' deficit was $112,793 as of April 30, 2014. Cash Flows from Operating Activities We have not generated positive cash flows from operating activities. For the fiscal year ended April 30, 2014, net cash flows used in operating activities was $88,943 consisting of a net loss of $108,101, decrease in prepaid expenses of $6,000, increase in accounts payable related party of $2,000, and accounts increase in accounts payable of $11,158. Net cash flows used in operating activities was $123,835 for the period from inception to ended April 30, 2014. Cash Flows from Financing Activities We have financed our operations primarily from either advancements or the issuance of equity and debt instruments. For the fiscal year ended April 30, 2014 net cash provided by financing activities was $88,937, received from proceeds from shareholder loan and proceeds from advances from a former director. For the year ended April 30, 2013, net cash provided by financing activities was $32,100 received from proceeds from issuance of common stock and proceeds from related party. 5 PLAN OF OPERATION AND FUNDING We expect that working capital requirements will continue to be funded through a combination of our existing funds and further issuances of securities. Our working capital requirements are expected to increase in line with the growth of our business. Existing working capital, further advances and debt instruments, and anticipated cash flow are expected to be adequate to fund our operations over the next six months. We have no lines of credit or other bank financing arrangements. Generally, we have financed operations to date through the proceeds of the private placement of equity and debt instruments. In connection with our business plan, management anticipates additional increases in operating expenses and capital expenditures relating to: (i) acquisition of inventory; (ii) developmental expenses associated with a start-up business; and (iii) marketing expenses. We intend to finance these expenses with further issuances of securities, and debt issuances. Thereafter, we expect we will need to raise additional capital and generate revenues to meet long-term operating requirements. 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. MATERIAL COMMITMENTS As of the date of this Annual Report, we do not have any material commitments. PURCHASE OF SIGNIFICANT EQUIPMENT We do not intend to purchase any significant equipment during the next twelve months. OFF-BALANCE SHEET ARRANGEMENTS As of the date of this Annual Report, we do not have any 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. GOING CONCERN The independent auditors' report accompanying our April 30, 2014 and April 30, 2013 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 our assets and satisfy our liabilities and commitments in the ordinary course of business. |