Item 2. Management's Discussion and Analysis
of Financial Condition or Plan of Operation
FORWARD-LOOKING STATEMENTS
This quarterly report contains forward-looking
statements. These statements relate to future events or our future financial performance. In some cases, you can identify forward-looking
statements by terminology such as “may”, “should”, “expects”, “plans”, “anticipates”,
“believes”, “estimates”, “predicts”, “potential” or “continue” or the
negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks,
uncertainties and other factors that may cause our or our industry's actual results, levels of activity, performance or achievements
to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these
forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable,
we cannot guarantee future results, levels of activity, performance or achievements. Except as required by applicable law, including
the securities laws of the United States, we do not intend to update any of the forward-looking statements to conform these statements
to actual results.
Our unaudited financial statements are stated
in United States Dollars (US$) and are prepared in accordance with United States Generally Accepted Accounting Principles. The
following discussion should be read in conjunction with our financial statements and the related notes that appear elsewhere in
this quarterly 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 quarterly report.
Unless otherwise specified in this quarterly
report, all dollar amounts are expressed in United States dollars and all references to “common stock” refer to shares
of our common stock.
As used in this quarterly report, the terms
“we”, “us”, “our” and “our company” mean ME Renewable Power Corporation., unless
otherwise indicated.
Corporate History
ME Renewable Power Corporation (the "Company")
was incorporated in the State of Nevada under the name Jarex Solutions Corp. on October 28, 2014 ("Inception") and originally
intended to commence operations in the business of Automatic Number Plate Recognition (“ANPR’) software development
for businesses which have parking zones or access control on their sites. Jarex Solutions Corp. intended to develop software based
on the ANPR technologies in Latvia.
On May 31, 2016, our board of directors approved
an agreement and plan of merger to merge with our wholly-owned subsidiary ME Renewable Power Corporation, a Nevada corporation,
to effect a name change from Jarex Solutions Corp. to ME Renewable Power Corporation. Our company will remain the surviving company.
ME Renewable Power Corporation was formed solely for the change of name.
Articles of Merger to effect the merger and
change of name were filed with the Nevada Secretary of State on June 7, 2016, with an effective date of June 14, 2016.
The name change became effective with the Over-the-Counter
Bulletin Board at the opening of trading on June 21, 2016. In addition to the change of name, our trading symbol changed to
MEPW. Our CUSIP number is 552745 101.
Our principal office address is located at:
Vista del vaque #13
la charcas Santiago, Dominican Republic
On January 31, 2020, one of the Company’s
shareholders made a motion and application to be appointed as custodian of the Company based on prior management abandoning its
responsibilities to continue making filings at the Nevada Secretary of State’s office and for failing to hold a shareholders’
meeting in over 4 years and otherwise failing to keep current in its obligations to the Company. Upon motion and application
to the District Court, Clark County Nevada, the Court granted the shareholder’s request and the shareholder was appointed
as custodian for the Company (“Custodian”). As Custodian of the Company, the shareholder was ordered to file an amendment
to the Company’s articles of incorporation which was filed in conformity with N.R.S. 78.347(4) and the shareholder was ordered
to have the Company’s charter reinstated in Nevada, to notice and hold a shareholder meeting; to provide a report to the
Court of the actions taken at the shareholder meeting; to identify and name a new registered agent in the State of Nevada; to reinstate
the Company in the State of Nevada; and the Custodian. In addition to the aforementioned items set forth in the Order Appointing
the Custodian, the Custodian was given the power and authority to take any action it deemed reasonable and for the benefit of the
Company and its shareholders. The Custodian is now in the process of meeting all of the requirements set forth in the Court
Order and filing a motion to terminate its services. Upon granting the motion, the Court will issue an Order acknowledging
that the Custodian has performed all of the duties that had been required of it and the management of the Company will revert exclusively
to the officers and directors appointed by the Custodian. As of the date of this filing the motion has been granted.On May 20,
2020, the Custodian as an interim officer acting on behalf of the Company, appointed Karina Garcia Peralta as President, Principal
Executive Officer, Principal Financial Officer, Director and Sole officer of the Company.
Current Business
After June 14, 2016, the Company merged with
its wholly-owned subsidiary ME Renewable Power Corporation, a Nevada corporation, and changed its name from Jarex Solutions Corp.
to ME Renewable Power Corporation. The Company intended to distribute green energy-saving and reusable equipment and materials.The
Company subsequently ceased these plans and is not currently engaged in any business operations. The Company is seeking to
consummate a merger or acquisition.
Results of Operations
Three months ended September 30, 2020 compared
to the three months ended September 30, 2019.
Our operating expenses for the three month
period ended September 30, 2020 and September 30, 2019 are outlined in the table below:
|
|
Three
|
|
Three
|
|
|
months
|
|
months
|
|
|
ended
|
|
ended
|
|
|
September 30,
|
|
September 30,
|
|
|
2020
|
|
2019
|
Revenue
|
|
$
|
0
|
|
|
$
|
0
|
|
General and Administrative Expenses
|
|
$
|
325
|
|
|
$
|
300
|
|
Professional fees
|
|
$
|
1,334
|
|
|
$
|
1,000
|
|
Net Operating Loss
|
|
$
|
(1,759
|
)
|
|
$
|
(1,300
|
))
|
Operating Revenues
No revenues were recorded for the three months
ended September 30, 2020 and September 30, 2019.
Operating Expenses and Net Loss
Operating expenses for the three months ended
September 30, 2020 were $1,759, compared with $1,300 for the three months endedSeptember 30, 2019. The increase in expenses for
the current period was due to an increase in operating expenses. The operating expensesincluded,general and administrative expenses
and professional fees.
Net loss for the three months ended September
30, 2020were $1,759, compared with $1,300 for the three months ended September 30, 2019. The increase in net loss for the current
period was due to an increase in operating expenses. The operating expenses included,general and administrative expenses and professional
fees.
Nine months ended September 30, 2020 compared
to thenine months ended September 30, 2019.
Our operating expenses for the nine month period
ended September 30, 2020 and September 30, 2019 are outlined in the table below:
|
|
Nine
|
|
Nine
|
|
|
months
|
|
months
|
|
|
ended
|
|
ended
|
|
|
September 30
|
|
September 30,
|
|
|
2020
|
|
2019
|
Revenue
|
|
$
|
0
|
|
|
$
|
0
|
|
General and Administrative Expenses
|
|
$
|
3,149
|
|
|
$
|
900
|
|
Professional fees
|
|
$
|
6.246
|
|
|
$
|
3,000
|
|
Net Operating Loss
|
|
$
|
(9,395
|
)
|
|
$
|
(3,900
|
))
|
Operating Revenues
No revenues were recorded for the nine months
ended September 30, 2020 and September 30, 2019.
Operating Expenses and Net Loss
Operating expenses for the nine months ended
September 30, 2020 were $9,395, compared with $3,900 for the nine months ended September 30, 2019. The increase in expenses for
the current period was due to an increase in operating expenses. The operating expenses included,general and administrative expenses
and professional fees.
Net loss for the nine months ended September
30, 2020 were $9,395, compared with $3,900 for the nine months ended September 30, 2019. The increase in net loss for the current
period was due to an increase in operating expenses and loan from a related party. The operating expenses included,general and
administrative expenses and professional fees.
Liquidity and Capital Resources
Working Capital
|
|
As at
|
|
As at
|
|
|
September,
30
|
|
December 31,
|
|
|
2020
|
|
2019
|
Current Assets
|
|
$
|
0
|
|
|
$
|
0
|
|
Current Liabilities
|
|
$
|
64,467
|
|
|
$
|
62,585
|
|
Working Capital (deficiency)
|
|
$
|
(64,467
|
)
|
|
$
|
(62,585
|
)
|
Cash Flows
|
|
Nine months
|
|
Nine months
|
|
|
Ended
|
|
Ended
|
|
|
September
30,
|
|
September 30,
|
|
|
2020
|
|
2019
|
Net cash used in operating activities
|
|
$
|
0
|
|
|
$
|
0
|
|
Net cash used in investing activities
|
|
$
|
0
|
|
|
$
|
0
|
|
Net cash provided by financing activities
|
|
$
|
0
|
|
|
$
|
0
|
|
Net increase in cash
|
|
$
|
0
|
|
|
$
|
0
|
|
As at September 30, 2020, our total assets were $0 and at the
year ended December 31, 2019, our total assets were $0 .
As at September 30, 2020, we had total
liabilities of $64,467 compared with total liabilities of $62,585 as at December 31, 2019. The increase in total liabilities
was due to professional fees, general and administrative expenses and amounts owed to a related party of in the nine months
ended September 30, 2020.
As at September 30, 2020, we had a working
capital deficit of $64,467 compared with a working capital of $62,585 as at December 31, 2019. The working capital deficit is due
to amounts owed to a related party and increase in professional fees and general and administrative fees in the nine months ended
September 30, 2020.
Cashflow from Operating Activities
During the nine months ended September 30,
2020 and September 30, 2019, $0 in cash was used for operating activities,
Cashflow from Investing Activities
During the nine months ended September 30,
2020 and September 30, 2019, we did not have any investing activities.
Cashflow from Financing Activities
During the nine months ended September 30, 2020 and September 30, 2019, we did not have any financing activities.
|
Going Concern
We have not attained profitable operations
and are dependent upon obtaining financing to pursue any extensive acquisitions and activities. For these reasons, our auditors
stated in their report on our audited financial statements that they have substantial doubt that we will be able to continue as
a going concern without further financing.
Off-Balance Sheet Arrangements
We have no 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 stockholders.
Future Financings
We expect that working capital requirements
will continue to be funded through a combination of our existing funds, further issuances of securities and loans from our principal
shareholder. 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 three 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.
Critical Accounting Policies
Our financial statements and accompanying notes
have been prepared in accordance with United States generally accepted accounting principles applied on a consistent basis. The
preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities
at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods.
We regularly evaluate the accounting policies
and estimates that we use to prepare our financial statements. In general, management's estimates are based on historical experience,
on information from third party professionals, and on various other assumptions that are believed to be reasonable under the facts
and circumstances. Actual results could differ from those estimates made by management. Our fiscal year end is December 31.
Use of
Estimates
The preparation of financial statements in
conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities
and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues
and expenses during the reporting period
Basic Income (Loss) Per Share
Our company computes loss per share in accordance
with "ASC-260", "Earnings per Share" which requires presentation of both basic and diluted earnings per share
on the face of the statement of operations.
Basic loss per share is computed by dividing
net loss available to common shareholders by the weighted average number of outstanding common shares during the period. Diluted
loss per share give effect to all dilutive potential common shares outstanding during the period. Dilutive loss per share excludes
all potential common shares if their effect is anti-dilutive.
For the nine month period ended to September
30, 2020 there were no potentially dilutive debt or equity instruments issued or outstanding and any such shares would have been
excluded from the computation because they would have been anti-dilutive as our company incurred losses in this period.
Recently Issued Accounting Pronouncements
Our company has reviewed all the recently issued,
but not yet effective accounting pronouncements and we do not believe any of these pronouncements will have a material impact on
our company.