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DINAMO CORP - 10-K - Management's Discussion and Analysis of Financial Condition and Results of Operations(Edgar Glimpses Via Acquire Media NewsEdge) The following discussion should be read in conjunction with our financial statements, including the notes thereto, appearing elsewhere in this annual 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. Our audited financial statements are stated in United States Dollars and are prepared in accordance with United States Generally Accepted Accounting Principles. RESULTS OF OPERATIONS We have incurred recurring losses to date. Our financial statements have been prepared assuming that we will continue as a going concern and, accordingly, do not include adjustments relating to the recoverability and realization of assets and classification of liabilities that might be necessary should we be unable to continue in operation. We expect we will require additional capital to meet our long term operating requirements. We expect to raise additional capital through, among other things, the sale of equity or debt securities. FISCAL YEAR ENDED APRIL 30, 2014 COMPARED TO THE PERIOD FROM MARCH 25, 2013 (DATE OF INCEPTION) TO APRIL 30, 2014. Revenue We recognized no revenue during the twelve months ended April 30, 2014 and for the period from March 25, 2013 (Inception) to April 30, 2013. Operating expenses We incurred operating expenses of $14,458 during the twelve months ended April 30, 2014 compared to $451 of operating expenses in the period from March 25, 2013 (Inception) to April 30, 2013. Our operating expenses consisted of bank service charges, professional fees and business license and permits. Expenses incurred during the fiscal year ended April 30, 2014 as compared to period ended April 30, 2013 increased primarily due to the increased scale and scope of business operations. Net Losses Our net loss for the fiscal year ended April 30, 2014 was $14,458 compared to a net loss of $451 during the period from March 25, 2012 (Inception) to April 30, 2013 due to the factors discussed above. LIQUIDITY AND CAPITAL RESOURCES As of April 30, 2014, our total assets were $20,791 comprised of cash and cash equivalents $5,736 and prepaid expenses of $ 15,055 and our total liabilities were $8,200 comprised solely of loans from director. As of April 30, 2013, our total assets were $5,549 comprising cash and our total liabilities were $500 comprised solely of a loan form director. 9 --------------------------------------------------------------------------------Shareholders' equity increased from $4,049 as of April 30, 2013 to $12,591 as of April 30, 2014 due to issuance of common stock for cash largely offset by the losses incurred in the year The Company has incurred a loss since Inception (March 25, 2013) resulting in an accumulated deficit of $14,909 as of April 30, 2014 and further losses are anticipated in the development of its business. Accordingly, there is substantial doubt about the Company's ability to continue as a going concern. The ability to continue as a going concern is dependent upon the Company generating profitable operations in the future and, or, obtaining the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due. Management intends to finance operating costs over the next twelve months with existing cash on hand, loans from directors and, or, the private placement of common stock. Because of the Company's history of losses, its independent auditors, in the reports on the financial statements for the year ended April 30, 2014 and for the period from Inception (March 25, 2013) to April 30, 2013, expressed substantial doubt about the Company's ability to continue as a going concern. The accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which contemplate continuation of the Company as a going concern. The financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that could result from the outcome of this uncertainty. Management anticipates that the Company will be dependent, for the near future, on additional investment capital to fund operating expenses The Company intends to position itself so that it may be able to raise additional funds through the capital markets. In light of management's efforts, there are no assurances that the Company will be successful in this or any of its endeavors or become financially viable and continue as a going concern. Cash Flows from Operating Activities We have not generated positive cash flows from operating activities. For the fiscal year ended April 30, 2014, net cash flows used in operating activities was $29,513. For the period from March 25, 2013 (Inception) to April 30, 2013, net cash flows used in operating activities were $451. Cash Flows from Investing Activities We neither used nor generated cash from investing activities. Cash Flows from Financing Activities We have financed our operations primarily from the sale of shares of our common stock or by way of loan from our director. For the fiscal year ended April 30, 2014, net cash from financing activities was $30,700 consisting of $23,000 of proceeds received from the sale of shares of our common stock and $7,700 by way of loan from a director. For the period from inception (March 25, 2013) to April 30, 2013, net cash provided by financing activities was $5,000 consisting of $4,500 of proceeds from the sale of shares of our common stock and $500 by way of loan from a director. PLAN OF OPERATION AND FUNDING We expect that working capital requirements will continue to be funded through a combination of our existing funds and further issuances of securities. Our working capital requirements are expected to increase in line with the growth of our business 10 --------------------------------------------------------------------------------Existing working capital, further advances and debt instruments, and anticipated cash flow are expected to be adequate to fund our operations over the next six 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 software; (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. MATERIAL COMMITMENTS As of the date of this Annual Report, we do not have any material commitments. PURCHASE OF SIGNIFICANT EQUIPMENT We have not purchased any significant equipment during the last - twelve months. OFF-BALANCE SHEET ARRANGEMENTS As of the date of this Annual Report, we do not have any 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 investors. GOING CONCERN The independent auditors' report accompanying our April 30, 2014 and April 30, 2013 financial statements contains an explanatory paragraph expressing substantial doubt about our ability to continue as a going concern. The financial statements have been prepared "assuming that we will continue as a going concern," which contemplates that we will realize our assets and satisfy our liabilities and commitments in the ordinary course of business. SIGNIFCANT ACCOUNTING POLICIES Income Taxes Income taxes are computed using the asset and liability method. Under the asset and liability method, deferred income tax assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities and are measured using the currently enacted tax rates and laws. A valuation allowance is provided for the amount of deferred tax assets that, based on available evidence, are not expected to be realized. |