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ASTA HOLDINGS, CORP. - 10-K - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULT 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. Factors that could cause or contribute to such differences include, but are not limited to those discussed below and elsewhere in this Annual Report. 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 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. Our net loss for the fiscal year ended July 31, 2014 was $29,059 compared to a net loss of $331 for the period from Inception (June 12, 2013) to July 31, 2013. During fiscal year ended July 31, 2014, we generated $3,300 in revenue. During the fiscal year ended July 31, 2014, we incurred expenses of $32,359 compared to $331 incurred during the period from Inception (June 12, 2013) to July 31, 2013. LIQUIDITY AND CAPITAL RESOURCES As of July 31, 2014 our current assets were $10,010 compared to $7,594 in current assets at July 31, 2013. As of July 31, 2014, our current liabilities were $10,100 compared to $425 in current liabilities at July 31, 2013. Stockholders' deficit was $90 as of July 31, 2014 compared to stockholders' equity of $7,169 as of July 31, 2013. 6 -------------------------------------------------------------------------------- Cash Flows from Operating Activities We have not generated positive cash flows from operating activities. For the year ended July 31, 2014, net cash flows used in operating activities was $29,384. Net cash flows used in operating activities was $6 for the period from inception (June 12, 2013) to July 31, 2013. The variance between the two periods arises largely due to the increase in net loss between the two periods. Cash Flows from (used in) Investing Activities We neither generated cash from, nor used cash in investing activities during the year ended July 31, 2014 or the period from Inception (July 12, 2013) to July 31, 2013. Cash Flows from Financing Activities We have financed our operations primarily from the sale of shares of or common stock or by way of loan from our principal shareholder. For the year ended July 31, 2014, net cash flow from financing activities was $31,800, $21,800 was received from proceeds from the sale of shares of common stock and $10,000 by way of loan from our principal shareholder. For the period from inception (June 12, 2013) to July 31, 2013, net cash provided by financing activities was $7,600, $7,500 was received from proceeds from the sale of shares of common stock and $100 by way of loan from our principal shareholder. 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) developmental expenses associated with a start-up business and (ii) 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. 7 --------------------------------------------------------------------------------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 July 31, 2014 and July 31, 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. |