AS IP TECH: MANAGEMENT DISCUSSION AND ANALYSIS OR OPERATING PLAN. (form 10-K)

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PREVIEW

The Company maintains a low cost structure as it has no employees, contracting management and support services as needed. Due to the low cost structure, the Company expects that proceeds from share issuances and income from sales of services and systems will be sufficient to meet the operating and capital needs of the Company for approximately 12 months.

RESULTS AND PLAN OF OPERATIONS

The Company had accumulated losses from its inception until June 30, 2021 of
$ 14,195,118. The main components of the loss include costs of raising capital, consulting and management costs, engineering costs and operating costs. The Company may incur significant additional expenses in the context of the development of the BizjetMobile and fflya programs. The Company’s ability to continue its operations depends on receiving funds through its anticipated sources of funding, including capital raising, borrowings and operating income.

YEAR ENDED JUNE 30, 2021 COMPARED TO THE ENDED YEAR JUNE 30, 2020

During fiscal year 2021, the Company’s programs were severely affected by the Covid19 pandemic, with virtually all business aircraft customer programs on hold. To ensure the continued viability of the company and to further improve and implement the fflya airline program, all payments to executives and associated engineering and support services have been reduced by 50%, on the basis of base that they would be back.

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to normal by May 2021. While Covid19 has always had an operational impact, sales of business aircraft systems have recovered, although service revenues remain sluggish. On the airline side, the first airline installation was carried out on Wizz Air in February 2021.

The Company received income from $ 73,837 of its BizjetMobile activity during the financial year June 30, 2021, compared to $ 36,205 in the year ended June 30, 2020. BizjetMobile service fee revenue decreased by $ 19,387 To $ 11,964 and sales of BizjetMobile systems increased by $ 16,818 To $ 61,873 in the past years
June 30, 2020 and June 30, 2021 respectively. The company was able to increase system sales with the introduction of a very low cost system in the third quarter of 2020.

Operating expenses went from $ 653,841 for the completed twelve month period
June 30, 2020 To $ 733,962 for the completed twelve month period June 30, 2021 mainly due to increased marketing costs.

The Company recorded a net operating loss for the twelve month period ended June 30, 2021 of $ 660,125, compared to a loss of $ 617,636 for the completed twelve month period June 30, 2020.

The other expenses went from $ 147,548 in the year ended June 30, 2020, To
$ 710,703 in the year ended June 30, 2021, due to the higher interest charges, the loss on the issuance of shares for the settlement of the liabilities and the amortization of the advantageous conversion function.

The Company recorded a net loss for the twelve month period ended June 30, 2021
of $ 1,370,828, compared to a loss of $ 765,184 for the completed twelve month period
June 30, 2020.

LIQUIDITY AND CAPITAL RESOURCES

The Company’s cash and cash equivalents cash equivalents have increased from $ 8,958
To June 30, 2020 To $ 157,601 To June 30, 2021.

The turnover of the Company for the twelve months ended June 30, 2021 was $ 73,837, compared to $ 36,205 in the period of twelve months to June 30, 2020. Operating expenses increased for the period July 1, 2020 To June 30, 2021 mainly due to increased marketing costs. After loss on issuance of shares, amortization of the advantageous conversion feature, issuance of shares for interest, increase in related party debts and issuance of common stock for related party debts , the Company recorded a net cash outflow of $ 417,053 operating activities for the period from July 1, 2020 To June 30, 2021, compared to a net cash outflow from operating activities of $ 332,533 for the period of July 1, 2019 To June 30, 2020.

The Company had no cash flow from investing activities for the twelve months ended June 30, 2021, and June 30, 2020 respectively.

The Company’s cash flows from financing activities for the twelve months ending June 30, 2021 was derived from the issuance of common shares and loan proceeds. During the past twelve months June 30, 2020, the financing activities came from the subscription of ordinary shares.

The Company’s business plan is based on the development of the BizjetMobile business as well as the expansion into the airline sector with its fflya program. This plan may require significant capital from the Company for marketing and technical and product support. The Company may not have sufficient funds to finance its operations, in which case it will have to seek additional capital. The Company may raise additional capital through the sale of its equity securities, through an offering of debt securities or loans. The Company has no policy on the amount of borrowings or debts that the Company may contract.

The Company has no investment expenditure commitments in the near future.


OUTLOOK


The following statements are forward-looking statements and should be read in conjunction with the forward-looking statement in Part I of this Form 10-K.

The Company’s current revenue was derived from service fees and system sales generated by BizjetMobile. Revenue was based on sales of Bluetooth systems hardware, as well as revenue

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service charges for providing connectivity. The Company then contracted ASiQ to provide and support the Bizjet program. Covid damaged the Bizjet market by bringing all aircraft to a standstill, and the impact on ASiQ, the Company’s industrial partner, was severe.

In order to retain the services of Ron Chapman and ASiQ and continue to support the fflya Enterprises program. Effective October 1, 2021, the company’s income on BizjetMobile will be in the form of commissions only from ASiQ, on a case-by-case basis. This informal arrangement will be reviewed in december 2021
when the position of ASiQ and Covid is much clearer.

ASiQ provides airline facilities, systems and support services funded as needed on a nominal month-to-month basis by the Company.

The main focus of the company over the past 12 months has been the development of fflya to support its Wizz Air program.

The fflya business model is based on offering free paid messaging through general and destination-specific advertising. In the post-Covid environment, in which airlines rely more on their applications for boarding passes and other flight information, passengers of client airlines will be able to access the fflya system for messaging as well as for reservations for tours and attractions. Under the fflya program, an airline will receive the system on the basis of revenue sharing under terms to be agreed. Since the cost of the equipment is a fraction of a Wi-Fi platform, the company needs minimum commissions to justify the cost of the hardware. The Company believes that LCAs will be attracted to this business model.



REVENUE RECOGNITION



The Company recognizes revenue from the sale of goods and services in accordance with ASC 606 by applying the following steps: (1) identifying the contract with a customer; (2) identify the performance obligations in the contract; (3) determine the price of the transaction; (4) assign the transaction price to each performance obligation of the contract; and (5) recognize revenue when each performance obligation is satisfied. .Revenues are recognized on the basis of the net income received from the Company’s representatives, after deduction of commissions.


GOING CONCERN


The financial statements appearing elsewhere in this report have been prepared on the assumption that the Company will continue to operate. As such, they do not include adjustments relating to the recoverability of the amounts of assets recognized and the classification of assets and liabilities recognized. The accompanying financial statements have been prepared on the assumption that the Company will continue to operate. The Company has suffered recurring operating losses which raise significant doubts as to its ability to continue operating. Management’s plans with respect to these matters are described in Note 1 to the financial statements. The financial statements do not include any adjustment that could result from the outcome of this uncertainty.

The Company’s ability to continue its operations depends on its raising of capital through debt or equity financing to meet its operating needs. These conditions raise substantial doubt as to the Company’s ability to continue as a going concern, and if substantial additional funding is not acquired or alternative sources developed, management will be required to reduce its activities.

The Company may raise additional capital by selling its equity securities, by offering debt securities or by borrowing from a financial institution. The Company has no policy on the amount of borrowings or debts that the Company may contract. Management believes that the steps being taken to obtain additional funds provide the Company with an opportunity to continue to operate.

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