XTREME FIGHTING CHAMPIONSHIPS: DISCUSSION AND ANALYSIS BY MANAGEMENT OF FINANCIAL SITUATION AND RESULTS OF OPERATIONS. (form 10-Q)


Forward-looking statements

This section and other parts of this Quarterly Report of Form 10-Q include “forward-looking statements”, which involve risks and uncertainties. All statements other than statements of historical fact included in this Form 10-Q that deal with activities, events or developments that we anticipate or anticipate will or may occur in the future, including things such as future capital expenditures (including the amount and nature thereof), business strategy and strategy implementation measures, competitive strength, goals, expansion and growth of our business and our operations, plans, references to future successes, references to intentions with respect to future matters and other such matters are forward-looking statements. In some cases, you can identify forward-looking statements by words such as “may”, “will”, “should”, “expects”, “plans”, “anticipates”, “believes”, “believes”, “Predicted,” “potential” or “continue”, or the negative of those terms or other comparable terminology. These statements are only predictions. Actual events or results may differ materially. These statements are based on certain assumptions and analyzes that we have made in light of our experience and our perception of historical trends, current conditions and expected future developments as well as other factors that we deem appropriate in the circumstances. However, the compliance of actual results and developments with our expectations and forecasts is subject to a number of risks, uncertainties and other factors, many of which are beyond our control.

Although we believe that the expectations reflected in forward-looking statements are reasonable, we cannot guarantee future results, activity levels, performance or achievements. Further, we assume no responsibility for the accuracy and completeness of these forward-looking statements. We are under no obligation to update any forward-looking statements after the date of this report to conform such statements to actual results.


Overview


Xtreme Fighting Championship, Inc. (the “Company”, “we” or “us”) was incorporated under the laws of State of nevada to May 3, 2006.

Certain statements contained below are forward-looking statements (rather than historical facts) that are subject to risks and uncertainties that could cause actual results to differ materially from those described in forward-looking statements.

Our auditors have issued a going concern opinion in the financial statements for the year ended December 31, 2020.



RESULTS OF OPERATIOMS



Working Capital


                              March 31,                December 31,
                                2021                       2020
               Current Assets              $    70,249  $    78,049
               Current Liabilities        $  1,346,640    $ 775,405
               Working Capital (Deficit) $(1,294,391 )   $(697,356)




Cash Flows


                             March 31,                        March 31,
                               2021                              2020
        Cash Flows from (used in) Operating Activities  $(7,800)  $(15,620
        Cash Flows from (used in) Financing Activities           $  15,620
        Net Increase (decrease) in Cash During Period   $(7,800)  $      -


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Operating Revenues


We generated revenue of $ 36,270 for the three months ended March 31, 2021
and $ 0 for the three months ended March 31, 2020.

Operating expenses and net loss

Operating expenses for the three months ended March 31, 2021 were $ 912,296
compared to $ 200 for the three months ended March 31, 2020. Operating expenses for the three months ended March 31, 2021 composed of the general and administrative costs of $ 622,302 compared to $ 200 for the three months ended
March 31, 2020 and general expenses and depreciation and amortization of
$ 289,994 compared to $ 0 for the three months ended March 31, 2020 .

During the three months ended March 31, 2021, the Company recorded a net loss of ($ 887,029) compared to the net loss of ($ 200) for the three months ended March 31, 2020.

Liquidity and capital resources

Like a March 31, 2021, the Company’s cash balance was $ 5,249 compared to the cash balance of $ 13,049 To June 30, 2020. From March 31, 2021, the Company’s total assets were $ 12,046,310 compared to the total assets of $ 12,344,104 like a June 30, 2020.

From March 31, 2021, the Company had a total liability of $ 1,364,640 compared to the total liabilities of $ 775,405 To December 31, 2020. Liabilities for the three months ended March 31, 2021 composed of accounts payable and accrued liabilities of $ 49,062 compared to $ 37,330 from December 31, 2020; due to a related party of $ 17,987 compared to $ 17,070 from December 31, 2020; convertible debt, net of discount of $ 579,118 compared to $ 579,118 from December 31, 2020; share subscription payable from $ 17,987 compared to $ 17,987 from December 31, 2020; and unearned income from $ 700,486 compared to $ 123,900 like December 31, 2020.

Cash flow from operating activities

During the three months ended March 31, 2021 the company used $ 7,800 cash flow for operating activities compared to the use of $ 15,620 of cash for operating activities during the three months ended March 31, 2020.

Cash flow from financing activities

During the three months ended March 31, 2021 the Company received cash from the financing activities of $ 0 compared to $ 15,620 for the three months ended
March 31, 2020.



Subsequent Developments



None

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Going Concern


We have not had profitable operations and depend on the continued financial support of our shareholders, the ability to raise equity or debt financing, and the completion of profitable operations from our future operations. These factors raise significant doubts about our ability to continue to operate.

Off-balance sheet provisions

We have no material off-balance sheet arrangement that has or is reasonably likely to have a current or future effect on our financial condition, changes in financial condition, income or expenses, results of operations, liquidity , capital expenditures or capital resources that are important to shareholders.



Future Financing



The Company will consider selling securities in the future to finance its operations. There can be no assurance that we will make additional sales of equity securities or arrange for borrowing or other financing to finance our operations and other activities. 16



Critical Accounting Policies



Our consolidated financial statements and the accompanying notes have been prepared in accordance with United States generally accepted accounting principles applied consistently. The preparation of financial statements in accordance with we Generally accepted accounting principles require management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities as of the date of the consolidated financial statements, and the reported amounts of income and expenses. during reporting periods.

We regularly review the accounting policies and estimates we use to prepare our consolidated financial statements. A complete summary of these policies is included in the notes to our consolidated financial statements. In general, management’s estimates are based on historical experience, information from professional third parties and various other assumptions that are considered reasonable given the facts and circumstances. Actual results could differ from estimates made by management.

Recently published accounting position papers

The Company has implemented all the new accounting positions in force. These positions did not have a material impact on the financial statements, unless otherwise indicated, and the Company does not believe that there are any other new accounting positions that could have a material impact on its financial position or its operations. operating results.

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