ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS
AMANASU TECHNO HOLDINGS CORPORATION
CONSOLIDATED BALANCE SHEETS
(Unaudited)
| | March 31, | | | December 31, | |
| | 2022 | | | 2021 | |
ASSETS | | | | | | |
Current Assets: | | | | | | |
Cash | | $ | 65 | | | $ | 269 | |
Due from affiliate | | | 44,493 | | | | 39,166 | |
| | | | | | | | |
Total current assets | | | 44,558 | | | | 39,435 | |
| | | | | | | | |
Operating lease right-of-use assets | | | 21,634 | | | | 25,084 | |
| | | | | | | | |
Total Assets | | $ | 66,192 | | | $ | 64,519 | |
| | | | | | | | |
LIABILITIES & STOCKHOLDERS’ DEFICIT | | | | | | | | |
Current Liabilities: | | | | | | | | |
Accrued expenses – stockholders and officers | | $ | 300,039 | | | $ | 287,498 | |
Accrued expenses – other | | | 3,000 | | | | - | |
Operating lease liabilities – current | | | 14,242 | | | | 14,065 | |
Deposit on stock purchase | | | 61,030 | | | | 61,030 | |
Loans from stockholders and officers | | | 515,000 | | | | 499,350 | |
| | | | | | | | |
Total current liabilities | | | 893,311 | | | | 861,943 | |
| | | | | | | | |
Operating lease liabilities | | | 7,392 | | | | 11,019 | |
| | | | | | | | |
Total Liabilities | | | 900,703 | | | | 872,962 | |
| | | | | | | | |
Commitments and contingencies | | | | | | | | |
| | | | | | | | |
Stockholders’ Deficit: | | | | | | | | |
| | | | | | | | |
Common Stock: authorized 100,000,000 shares of $0.001 par value;46,956,300 shares issued and outstanding | | | 46,956 | | | | 46,956 | |
Additional paid in capital | | | 1,552,891 | | | | 1,552,891 | |
Accumulated deficit | | | (2,434,358 | ) | | | (2,408,290 | ) |
| | | | | | | | |
Total stockholders’ deficit | | | (834,511 | ) | | | (808,443 | ) |
| | | | | | | | |
Total Liabilities and Stockholders’ Deficit | | $ | 66,192 | | | $ | 64,519 | |
The accompanying notes are an integral part of these consolidated financial statements.
AMANASU TECHNO HOLDINGS CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
| | For the Three Months Ended March 31, | |
| | 2022 | | | 2021 | |
Revenue | | $ | - | | | $ | - | |
Cost of goods sold | | | - | | | | - | |
Gross profit | | | - | | | | - | |
| | | | | | | | |
General and administrative expenses | | | 20,465 | | | | 20,628 | |
| | | | | | | | |
Operating loss | | | (20,465 | ) | | | (20,628 | ) |
| | | | | | | | |
Other expense: | | | | | | | | |
Interest expense – stockholders and officers | | | (5,603 | ) | | | (4,897 | ) |
| | | | | | | | |
Loss before income taxes | | | (26,068 | ) | | | (25,525 | ) |
| | | | | | | | |
Income taxes | | | - | | | | - | |
| | | | | | | | |
Net loss | | $ | (26,068 | ) | | $ | (25,525 | ) |
| | | | | | | | |
Loss per share - Basic and Diluted | | $ | (0.00 | ) | | $ | (0.00 | ) |
| | | | | | | | |
Weighted average number of common shares outstanding – Basic and Diluted | | | 46,956,300 | | | | 46,956,300 | |
The accompanying notes are an integral part of these consolidated financial statements.
AMANASU TECHNO HOLDINGS CORPORATION
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ DEFICIT
(Unaudited)
| | Common Stock | | | Additional Paid In | | | Accumulated | | | | |
| | Shares | | | Amount | | | Capital | | | Deficit | | | Total | |
Balance, January 1, 2022 | | | 46,956,300 | | | $ | 46,956 | | | $ | 1,552,891 | | | $ | (2,408,290 | ) | | $ | (808,443 | ) |
Net loss | | | - | | | | - | | | | - | | | | (26,068 | ) | | | (26,068 | ) |
Balance, March 31, 2022 | | | 46,956,300 | | | $ | 46,956 | | | $ | 1,552,891 | | | $ | (2,434,358 | ) | | $ | (834,511 | ) |
| | Common Stock | | | Additional Paid In | | | Accumulated | | | | |
| | Shares | | | Amount | | | Capital | | | Deficit | | | Total | |
Balance, January 1, 2021 | | | 46,956,300 | | | $ | 46,956 | | | $ | 1,552,891 | | | $ | (2,328,320 | ) | | $ | (728,473 | ) |
Net loss | | | - | | | | - | | | | - | | | | (25,525 | ) | | | (25,525 | ) |
Balance, March 31, 2021 | | | 46,956,300 | | | $ | 46,956 | | | $ | 1,552,891 | | | $ | (2,353,845 | ) | | $ | (753,998 | ) |
The accompanying notes are an integral part of these consolidated financial statements.
AMANASU TECHNO HOLDINGS CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
| | For the Three Months Ended March 31, | |
| | 2022 | | | 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES | | | | | | |
Net loss | | $ | (26,068 | ) | | $ | (25,525 | ) |
| | | | | | | | |
Changes in Assets and Liabilities: | | | | | | | | |
Increase in accrued expenses – other | | | 3,000 | | | | 4,500 | |
Increase in accrued expenses – stockholders and officers | | | 12,541 | | | | 5,425 | |
Net Cash Used in Operating Activities | | | (10,527 | ) | | | (15,600 | ) |
| | | | | | | | |
CASH FLOWS FROM FINANCING ACTIVITIES | | | | | | | | |
Proceeds from loans from stockholders and officers | | | 15,650 | | | | 19,050 | |
Due from affiliate | | | (5,327 | ) | | | (2,900 | ) |
Net Cash Provided by Financing Activities | | | 10,323 | | | | 16,150 | |
| | | | | | | | |
Net (decrease) increase in cash | | | (204 | ) | | | 550 | |
| | | | | | | | |
Cash balance, beginning of period | | | 269 | | | | 859 | |
Cash balance, end of period | | $ | 65 | | | $ | 1,409 | |
| | | | | | | | |
Supplemental disclosures of cash flow information: | | | | | | | | |
| | | | | | | | |
Cash paid for interest | | $ | - | | | $ | - | |
Cash paid for income taxes | | $ | - | | | $ | - | |
The accompanying notes are an integral part of these consolidated financial statements.
AMANASU TECHNO HOLDINGS CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2022
(Unaudited)
1. BASIS OF PRESENTATION
The unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and the rules and regulations of the Securities and Exchange Commission. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, the accompanying unaudited financial statements contain all adjustments (consisting of normal recurring accruals) necessary to present fairly the financial position of the Company as of March 31, 2022, the results of operations for the three months ended March 31, 2022 and 2021, and cash flows for the three months ended March 31, 2022 and 2021. These results are not necessarily indicative of the results to be expected for the full year or any other period. The December 31, 2021 balance sheet included herein was derived from the audited financial statements included in the Company’s Annual Report on Form 10-K as of that date. Accordingly, the financial statements included herein should be reviewed in conjunction with the financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021, as filed with the Securities and Exchange Commission (“SEC”) on April 5, 2022.
2. GOING CONCERN
The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. As shown in the consolidated financial statements, the Company had a working capital deficiency of $848,753 and an accumulated deficit of $2,434,358 at March 31, 2022, and a record of continuing losses. These factors, among others, raise substantial doubt about the ability of the Company to continue as a going concern. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.
The Company’s present plans, the realization of which cannot be assured, to overcome these difficulties include, but are not limited to, a continuing effort to investigate business acquisitions and joint ventures. The Company will also continue to investigate and develop technologies, which the Company believes have great market potential. As such, the Company may need to pursue additional sources of financing or will have to rely on loans from stockholders and officers to support operations. There can be no assurances that the Company can secure additional financing.
The Company’s operations may be affected by the recent and ongoing outbreak of the coronavirus disease 2019 (COVID-19) which in March 2020, was declared a pandemic by the World Health Organization. The ultimate disruption which may be caused by the outbreak is uncertain; however, it may result in a material adverse impact on the Company’s financial position, operations and cash flows. Possible areas that may be affected include, but are not limited to, disruption to the Company’s ability to obtain funding and performing further research on certain projects.
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
New Accounting Pronouncements
During the three months ended March 31, 2022, there have been no material changes in the Company’s significant accounting policies to those previously disclosed in the Annual Report.
No recently issued accounting pronouncements had or are expected to have a material impact on the Company’s consolidated financial statements.
AMANASU TECHNO HOLDINGS CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2022
(Unaudited)
4. RELATED PARTY TRANSACTIONS AND BALANCES
The Company receives periodic loans from its principal stockholders and officers based upon the Company’s cash flow needs. There is no written loan agreement between the Company and stockholders and officers. All loans bear interest at 4.45% and due on demand. No terms for repayment have been established. As a result, the amount is classified as a current liability.
During the three months ended March 31, 2022 and 2021, the Company borrowed $15,650 and $19,050, respectively, from a stockholder.
The balances due as of March 31, 2022 and December 31, 2021 were $515,000 and $499,350, respectively.
Interest expense associated with these loans were $5,603 and $4,897 for the three months ended March 31, 2022 and 2021, respectively. Accrued interest on these loans were $138,255 and $132,652 at March 31, 2022 and December 31, 2021, respectively.
The Company has an arrangement with Lina Maki, a stockholder of the Company, for her management consulting time. The agreement is not written and no payment terms have been established. The fee is $10,000 annually. As of March 31, 2022 and December 31, 2021, amounts due to the stockholder were $72,500 and $70,000, respectively.
The Company leases its office in Vancouver Canada from a stockholder of the Company at a monthly rate $2,500 under a lease agreement that expires October 1, 2023. At March 31, 2022 and December 31, 2021, amounts due to the stockholder were $85,034 and $81,096, respectively including rent and other expenses. The Company shares the space with Amanasu Environmental Corporation (“AEC”), a reporting company under the Securities Exchange Act of 1934. AEC is responsible for 50% of the rent.
The office in New York is rented at the rate of approximately $360 each year and is also shared with AEC. In addition, the Company maintains an office at Suite 905, 1-6-1 Senzoku Taito-Ku Tokyo Japan. The net balances due from AEC as of March 31, 2022 and December 31, 2021 were $44,493 and $39,166, respectively.
5. INCOME TAXES
In accordance with the current tax laws in the U.S., the Company is subject to a corporate tax rate of 21% on its taxable income. No provision for taxes is made for U.S. income tax for the three months ended March 31, 2022 and 2021 as it has no taxable income in the U.S.
Deferred income taxes are recorded to reflect the tax consequences or benefits to future years of any temporary differences between the tax basis of assets and liabilities, and of net operating loss (“NOL”) carryforwards. The Company has experienced losses since its inception. As a result, it has incurred no Federal income tax. In assessing the realization of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. Based on the assessment, management has established a full valuation allowance against all of the deferred tax asset relating to NOLs for every period because it is more likely than not that all of the deferred tax assets will not be realized.
The Company had NOL carryforwards of approximately $1.51 million at March 31, 2022. Approximately $1.23 million will expire in the years 2022 through 2037, and $0.28 million can be carried forward indefinitely.
AMANASU TECHNO HOLDINGS CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2022
(Unaudited)
6. OPERATING LEASE LIABILITY
The Company’s executive offices are located at 244 Fifth Avenue 2nd Floor New York, NY 10001 and Vancouver, British Columbia. The total premises in Vancouver are 2,000 square feet and are leased at a monthly rate of $2,500 under a lease agreement between the Company and the Secretary of the Company’s board of directors who is also the stockholder of the Company, which expires October 1, 2023. The Company shares the space with AEC, a reporting company under the Securities Exchange Act of 1934. Our major stockholder and officer own approximately 81% of AEC’s outstanding shares of common stock. AEC is responsible for 50% of the rent or $1,250 each month. The office in New York is rented at the rate of $360 each year and shares with AEC. In addition, the Company maintains an office at Suite 905, 1-6-1 Senzoku Taito-Ku Tokyo Japan, and the Company pays no rent.
The Company’s lease does not provide an implicit rate, and therefore the Company uses an estimated incremental borrowing rate as the discount rate when measuring operating lease liabilities. The incremental borrowing rate represents an estimate of the interest rate the Company would incur at lease commencement to borrow an amount equal to the lease payments on a collateralized basis over the term of a lease. The Company uses an incremental borrowing rate of 5% for operating leases.
On October 1, 2019, the Company commenced a lease with a stockholder from October 1, 2019 to September 30, 2021 with a monthly payment of approximately $1,250. As such, the Company recorded $28,492 of right-of-use assets and related operating leases liabilities on October 1, 2019. This asset was fully amortized as of September 30, 2021.
On October 1, 2021, the Company commenced a new lease with the same stockholder from October 1, 2021 to September 30, 2023 with a monthly payment of approximately $1,250. As such, the Company recorded $28,492 of right-of-use assets and related operating leases liabilities on October 1, 2021. For the three months ended March 31, 2022 and 2021, the Company amortized $3,450 and $3,627 of right-of-use assets, respectively.
The following table reconciles the undiscounted future minimum lease under the non-cancelable operating leases with terms of more than one year to the total lease liabilities recognized on the consolidated balance sheet as of March 31, 2022:
2022 – remaining nine months | | $ | 11,250 | |
2023 | | | 11,250 | |
Total undiscounted future minimum lease payments | | | 22,500 | |
Less: Difference between undiscounted lease payments and discounted lease liabilities | | | (866 | ) |
Total operating lease liabilities | | | 21,634 | |
Less current portion | | | (14,242 | ) |
Long-term lease liabilities | | $ | 7,392 | |
Total rent expense under operating leases for the three months ended March 31, 2022 and 2021 were $3,750 and $3,750, respectively.
7. COMMITMENTS AND CONTINGENCIES
From time to time, the Company may be involved in litigation relating to claims arising out of its operations in the normal course of business. There are no pending or threatened lawsuits that could reasonably be expected to have a material effect on the results of its operations and there are no proceedings in which any of the Company’s directors, officers, or affiliates, or any registered or beneficial stockholder, is an adverse party or has a material interest adverse to the Company’s interest.
8. SUBSEQUENT EVENTS
The Company evaluated subsequent events, which are events or transactions that occurred after March 31, 2022 through the issuance of the accompanying financial statements and determined that no significant subsequent event need to be recognized or disclosed.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
This quarterly report on Form 10-Q and other reports filed by Amanasu Techno Holdings Corporation and its wholly owned subsidiaries, collectively the “Company”, “we”, “our”, and “us”) from time to time with the U.S. Securities and Exchange Commission (the “SEC”) contain or may contain forward-looking statements and information that are based upon beliefs of, and information currently available to, the Company’s management as well as estimates and assumptions made by Company’s management. Readers are cautioned not to place undue reliance on these forward-looking statements, which are only predictions and speak only as of the date hereof. When used in the filings, the words “anticipate,” “believe,” “estimate,” “expect,” “future,” “intend,” “plan,” or the negative of these terms and similar expressions as they relate to the Company or the Company’s management identify forward-looking statements. Such statements reflect the current view of the Company with respect to future events and are subject to risks, uncertainties, assumptions, and other factors, including the risks contained in the “Risk Factors” section of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021, as filed with the Securities and Exchange Commission (“SEC”) on April 5, 2022 (the “Annual Report”), relating to the Company’s industry, the Company’s operations and results of operations, and any businesses that the Company may acquire. Should one or more of these risks or uncertainties materialize, or should the underlying assumptions prove incorrect, actual results may differ significantly from those anticipated, believed, estimated, expected, intended, or planned.
Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, the Company cannot guarantee future results, levels of activity, performance, or achievements. Except as required by applicable law, including the securities laws of the United States, the Company does not intend to update any of the forward-looking statements to conform these statements to actual results.
Our unaudited consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). These accounting principles require us to make certain estimates, judgments and assumptions. We believe that the estimates, judgments and assumptions upon which we rely are reasonable based upon information available to us at the time that these estimates, judgments and assumptions are made. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities as of the date of the consolidated financial statements as well as the reported amounts of revenues and expenses during the periods presented. Our consolidated financial statements would be affected to the extent there are material differences between these estimates and actual results. In many cases, the accounting treatment of a particular transaction is specifically dictated by GAAP and does not require management’s judgment in its application. There are also areas in which management’s judgment in selecting any available alternative would not produce a materially different result. The following discussion should be read in conjunction with our consolidated financial statements and notes thereto appearing elsewhere in this report.
The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. As shown in the consolidated financial statements, the Company had a working capital deficiency of $848,753 and an accumulated deficit of $2,434,358 at March 31, 2022, and a record of continuing losses. These factors, among others, raise substantial doubt about the ability of the Company to continue as a going concern. The consolidated financial statements do not include adjustments relating to the recoverability of assets and classification of liabilities that might be necessary should the Company be unable to continue in operation.
The Company’s present plans, the realization of which cannot be assured, to overcome these difficulties include, but are not limited to, a continuing effort to investigate business acquisitions and joint ventures. The Company will also continue to investigate and develop technologies, which the Company believes have great market potential. As such, the Company may need to pursue additional sources of financing or will have to rely on loans from stockholders and officers to support operations. There can be no assurances that the Company can secure additional financing.
Company Overview
The Company was incorporated in the State of Nevada on December 1, 1997. Its operations to date have been limited to obtaining the license to various environmental and other technologies, conducting preliminary marketing efforts and seeking financing. The Company’s principal offices are at 244 Fifth Avenue, 2nd Floor, New York, NY 10001 Telephone: 604-790-8799. The Tokyo branch is located at Suite 905, 1-6-1 Senzoku Taito-Ku Tokyo Japan. Telephone: 03-5808-3663.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued)
General
Management’s discussion and analysis of results of operations and financial condition is intended to assist the reader in the understanding and assessment of significant changes and trends related to the results of operations and financial position of the Company together with its subsidiary. This discussion and analysis should be read in conjunction with the consolidated financial statements and accompanying financial notes, and with the Critical Accounting Policies noted below.
Plan of Operations
The Company is a development stage corporation. It has not commenced its planned operations of manufacturing and marketing. Its operations to date have been limited to conducting various tests on its technologies and seeking financing.
The Company’s present plans, the realization of which cannot be assured, to overcome its difficulties include, but are not limited to, a continuing effort to investigate business acquisitions and joint ventures. The Company will also continue to investigate and develop technologies, which the Company believes have great market potential. As such, the Company may need to pursue additional sources of financing or will have to rely on loans from stockholders and officers to support operations. There can be no assurances that the Company can secure additional financing.
The Company will continue to investigate and develop technologies, which the Company believes have great market potential. The first technology is an automated personal waste collection and cleaning machine Haruka (formerly “Heartlet”), developed by Nanomax Corporation in Japan. The Haruka is a machine used in retirement homes, hospitals, and even in private residences. The Haruka allows the patient maximum comfort. The Haruka lowers the burden on the caretaker with an automated cleaning system. This machine is the only machine in its class to have a 90% government rebate, which the company believes makes the technology, extremely competitive even in the current global economic crisis. The company obtained sales and manufacturing rights to the Haruka brand and is now seeking, manufacturing partners.
The second technology is Thoughts Routine Mechanism (“RUNE”) developed by the Company. We plan to develop this operating software to be used on electronic devices, such as smart phones, PC’s and gaming machines. We have secured technology and human resources that extend this technology to other applications outside the gaming sector. The Company has developed an alliance with Valhalla Game Studios (“VGS”) to jointly conduct game development and application development on “fate diagnosis based statistical theory, and “fate diagnosis” game service on mobile phones, smart phones, and tablets. We believe the collaboration between the Company and VGS may contribute to the future growth of the Company. Currently, Mr. Maki offers a wide range of advice as a special advisor, and this business continues to be evaluated and developed. In addition, cartoons, movies and games play a large role and influence world views and we believe that this technology be a very effective tool in this area.
The Company will also be concentrating its efforts on capital raising efforts to fund the development and marketing of these technologies.
As stated above, the Company cannot predict whether or not it will be successful in its capital raising efforts and, thus, be able to satisfy its cash requirements for the next 12 months. If the Company is unsuccessful in raising at least $150,000, it may not be able to complete its plan of expanding operations as discussed above. The Company is expecting to gain the capital from issuing and selling the shares of the Company. The Company has been able to fund its existing operations from the proceeds of loans from a stockholder.
The Company’s operations may be affected by the recent and ongoing outbreak of the coronavirus disease 2020 (COVID-19) which in March 2020, was declared a pandemic by the World Health Organization. The ultimate disruption which may be caused by the outbreak is uncertain; however, it may result in a material adverse impact on the Company’s financial position, operations and cash flows. Possible areas that may be affected include, but are not limited to, disruption to the Company’s ability to obtain funding and performing further research on certain projects.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued)
Results of Operations
There were no revenues for the three months ended March 31, 2022 and 2021.
General and administrative expenses decreased $163 (0.8%) to $20,465 for the three months ended March 31, 2022, as compared to $20,628 for the three months ended March 31, 2021 as a result of lower professional fees offset mostly by higher insurance costs and internet fees as well as higher state registration expenses.
As a result of the above, the Company incurred a loss from operations of $20,465 for the three months ended March 31, 2022 as compared to a loss from operations of $20,628 for the three months ended March 31, 2021.
For the three months ended March 31, 2022, interest expense increased $706 to $5,603 as compared to $4,897 for the three months ended March 31, 2021, as a result of the increased interest associated with additional loans from stockholders.
As a result of the above, the Company incurred a net loss of $26,068 for the three months ended March 31, 2022 as compared to $25,525 for the three months ended March 31, 2021.
Liquidity and Capital Resources
Total assets as of March 31, 2022 were $66,192, compared to $64,519 as of December 31, 2021. The increase is primarily due to an increase in amounts due from affiliate. Total liabilities as of March 31, 2022 were $900,703 compared to $872,962 at December 31, 2021, primarily as a result of an increase in loans from stockholders and officers and accrued expenses - stockholders and officers of the Company.
The Company’s minimum cash requirements for the next twelve months are estimated to be $60,250, including rent, audit fees, office expenses, interest and professional fees. The Company does not have sufficient cash on hand to support its overhead for the next twelve months and there are no material commitments for capital at this time other than as described above. The Company will need to issue and sell shares to gain capital for operations or arrange for additional stockholder or related party loans. There is no current commitment for either of these fund sources.
Our working capital deficit increased $26,245 to $848,753 at March 31, 2022 as compared to $822,508 at December 31, 2021 primarily due to an increase in loans from stockholders and officers and accrued expenses-related parties and other.
On March 31, 2022, the Company had a cash balance of $65. The Company’s principal sources and uses of funds were as follows:
Cash used in operating activities. For the three months ended March 31, 2022, the Company used $10,527 in cash for operations as compared to using $15,600 in cash for operations for the three months ended March 31, 2021, primarily as a result of the increase in accrued expenses – stockholders and officers.
Cash provided by financing activities. Net cash provided by financing activities for the three months ended March 31, 2022 was $10,323 as compared to $16,150 for the three months ended March 31, 2021 primarily as a result of the decrease in proceeds from loans from stockholders and officers.
OFF-BALANCE SHEET ARRANAGEMENTS
The Company has no off-balance sheet arrangements.
CRITICAL ACCOUNTING POLICIES
The Company prepares its financial statements in accordance with accounting principles generally accepted in the United States of America. Preparing financial statements in accordance with generally accepted accounting principles requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenue and expenses during the reported period.
Our critical accounting policies are described in the Notes to the Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2021, as filed with the SEC on April 5, 2022 (the “Annual Report”). There have been no changes in our critical accounting policies.
RECENTLY ISSUED ACCOUNTING STANDARDS
No recently issued accounting pronouncements had or are expected to have a material impact on the Company’s consolidated financial statements.