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
YEAR ENDED
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
The Company received income from
Operating expenses went from
The Company recorded a net operating loss for the twelve month period ended
The other expenses went from
The Company recorded a net loss for the twelve month period ended
of
LIQUIDITY AND CAPITAL RESOURCES
The Company’s cash and cash equivalents cash equivalents have increased from
To
The turnover of the Company for the twelve months ended
The Company had no cash flow from investing activities for the twelve months ended
The Company’s cash flows from financing activities for the twelve months ending
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
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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