FELLAZO CORP Discussion and analysis by management of the financial position and operating results. (form 10-K)


The following summary of our operating results should be read in conjunction with our financial statements included elsewhere in this annual report.

Like a August 31, 2021, the Company has a working capital deficit of $ 1,415,589
and has not yet established a stabilized source of revenue sufficient to cover operating costs for the foreseeable future. These factors, among others, may raise significant doubts as to the Company’s ability to continue as a going concern.

Our financial statements have been prepared on the assumption that we will continue to operate and, therefore, do not include adjustments related to the recoverability and realization of assets and classification of liabilities that may be necessary if we are not able to continue our activities. We anticipate that we will need additional capital to meet our long-term operating needs. We plan to raise additional capital through, among other things, the sale of stocks or debt securities.

Comparison of completed years August 31, 2021 and, 2020

                                            Years Ended
                                            August 31,
                                        2021          2020         Change        %
Revenue                               $ 246,861     $  65,848     $ 181,013     275%
Cost of Goods Sold                      182,306        49,511       132,795     268%

General and administrative expenses 391 378 325 399 65 979 20% Net loss

                              $ 326,823     $ 309,062     $  17,761       6%

For the year ended August 31, 2021, we had income from $ 246,861 and the cost of revenue from $ 182,306, compared to $ 65,848 and $ 49,511 for the same period in 2020. The Company has started marketing raw bird nests since fiscal 2020 and this is a first step in our operations. Due to the Covid-19 epidemic and a lockdown imposed by the government, we have ceased our activities mid-January 2020, and have not yet fully recovered, even with partial release of the lockout.

Our general and administrative costs were $ 391,378 for the year ended August 31, 2021, with an increase of $ 65,979 compared to $ 325,399 for the same period in 2020. The increase in general and administrative expenses is mainly attributable to the increase in management and travel expenses.

Liquidity and capital resources

Working Capital

                              August 31,       August 31,
                                 2021             2020           Change         %
Current assets               $      7,361     $     14,393     $   (7,032 )   (49%)
Current liabilities          $  1,422,950     $  1,103,389     $  319,561       29%
Working capital deficiency   $ (1,415,589 )   $ (1,088,996 )   $ (326,593 )     30%

The Company’s current assets consist of cash from $ 7,361 at August 31, 2021, with a decrease in $ 7,032 compared to the species of $ 6,665 and prepaid expenses and deposit of $ 7,728 at August 31, 2020. The decrease is mainly attributable to a decrease in prepaid expenses and deposits.

Like a August 31, 2021, current liabilities consist of accounts payable and accrued liabilities of $ 13,721 and due to a related party of $ 1,409,229, compared to August 31, 2020 current liabilities consist of accounts payable and accrued liabilities of $ 30,137 and due to a related party of $ 1,073,252. The increase in current liabilities of $ 319,561 is mainly due to operating expenses paid by the related party.


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Cash Flows

                                                    Years Ended
                                                    August 31,
                                                2021          2020         Change

Cash flow generated by operating activities $ 68,935 $ 8,804 $ 60,131
Cash used in fundraising activities

               (68,163 )     (57,218 )     (10,945 )

Effects of currency fluctuations (76) 612 (688) Net change in cash

                            $     696     $ (47,802 )   $  48,498

Cash flow from operating activities

Cash flow from operations was $ 68,935 during the year ended August 31, 2021, compared to $ 8,804 during the same period in 2020. The increase in
$ 60,131 is mainly due to the increase in expenses paid by related parties.

Cash flow from financing activities

The cash flows used in financing activities were $ 68,163 during the year ended August 31, 2021. These are advances from related parties of $ 15,555 and reimbursement to a related party of $ 83,718. The cash flows used in financing activities were $ 57,218
during the year ended August 31, 2020. These are advances from related parties of $ 309,249, expenses paid on behalf of a related party of $ 362,099 and reimbursement to a related party of $ 4,368.

Operation plan and financing

We expect that working capital requirements will continue to be funded through further issuance of our securities and loans from our officers and major shareholders, including Joseph ho. Our working capital requirement is expected to increase as our business grows.

Existing working capital, other advances and debt instruments, and expected cash flows are not expected to be sufficient to fund our operations and potential acquisitions over the next twelve months. We do not have any lines of credit or other bank financing arrangements. Generally, we have funded our operations to date with the proceeds of the private placement of equity and debt instruments. As part of our business plan, management anticipates further increases in operating and capital expenditures related to: (i) the acquisition of businesses in the healthcare sector; (ii) the acquisition of stocks; (iii) development expenses associated with starting a business; and (iv) marketing costs. We intend to fund these expenditures through further issuance of equity securities and debt instruments. Going forward, we anticipate that we will need to raise additional capital and generate income to meet long-term operating needs. Additional issuance of shares or convertible debt securities will result in dilution for our current shareholders. In addition, these securities may have rights, preferences or privileges greater than our common shares. Additional financing may not be available on acceptable terms, if at all. If adequate funds are not available or are not available on acceptable terms, we may not be able to take advantage of potential new business efforts or opportunities, which could significantly and materially restrict our business operations.

We will also seek funds from potential investors to finance the purchases of raw materials necessary to support our operations and surpluses for potential buyers.

We believe that our business plan will create significant growth potential for the Company which would generate more than sufficient income and cash to support the Company over the next twelve months and significant future growth.

Off-balance sheet provisions

As of the date of this Annual Report, we have no off-balance sheet arrangements that have or that are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, income or expenses, operating results, cash flow, capital expenditures or capital resources that are important to investors.


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Going Concern

The accompanying consolidated financial statements have been prepared on the assumption that the Company will continue to operate, which contemplates the realization of assets and the discharge of liabilities in the ordinary course of business for the foreseeable future.

From August 31, 2021, the Company had an accumulated deficit of $ 1,403,624 and net loss of $ 326,823 for the year ended August 31, 2021. The losses occurred primarily as a result of the substantial resources required for general and administrative costs associated with our operations. The continued operation of the Company is dependent on continued financial support from its shareholders or on external funding. Management believes that existing shareholders will provide additional liquidity to meet the Company’s obligations as they come due. However, there can be no assurance that the Company will be successful in raising sufficient funds to support operations.

These conditions raise substantial doubt as to the Company’s ability to continue operating. These financial statements do not include any adjustment to reflect the possible future effect on the recoverability and classification of assets or the amounts and classifications of liabilities that may result from the outcome of these uncertainties. Management believes that the actions currently taken to obtain additional funds and implement its strategic plan provide the opportunity for the Company to continue operating.

Critical accounting policies

We have identified the following policies below as essential to our business and results of operations. Our published results are affected by the application of the following accounting policies, some of which require management to make subjective or complex judgments. These judgments involve making estimates on the effect of matters that are inherently uncertain and may have a material impact on quarterly or annual operating results. For all of these policies, management cautions that future events rarely turn out exactly as expected and that best estimates regularly require adjustment. The specific risks associated with these critical accounting policies are described in the following paragraphs.

Use of Estimates

The preparation of financial statements in accordance with we GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements as well as the reported amount of income and expenses during the year. the reporting period. Actual results could differ from these estimates.

Recent accounting positions

Our company has implemented all the new accounting positions and does not believe that there are any other accounting positions that could have a material impact on its financial statements.

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