NEXT-CHEMX CORPORATION. MANAGEMENT REPORT AND ANALYSIS OF FINANCIAL POSITION AND OPERATING RESULTS. (Form 10-Q)
Management report and analysis of the financial situation and operating results
Caution Regarding Forward-Looking Information
This Quarterly Report on Form 10-Q, including, without limitation, statements containing the words “believes”, “anticipates”, “expects” and words of similar significance, constitute forward-looking statements. These forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause the actual results, performance or achievements of the Company, or the results of the industry, to be materially different from the results, performance or future achievements expressed or implied by these statements. forward-looking statements.
These factors include, among others, the following: general economic and market conditions at the international, national and local level; demographic changes; the Company’s ability to support, manage or forecast its growth; the Company’s ability to successfully complete and integrate acquisitions; existing government regulations and changes to or failure to comply with government regulations; negative publicity; competition; fluctuations and difficulty in predicting operating results; changes in business strategy or development plans; business interruptions; the ability to attract and retain qualified personnel; and other factors referenced in this and previous filings.
Given these uncertainties, readers of this Form 10-Q and investors are cautioned not to place undue reliance on these forward-looking statements. The Company disclaims any obligation to update these factors or to publicly announce the outcome of any revisions to any of the forward-looking statements contained herein to reflect future events or developments.
The Society was organized on
The company qualifies as an “emerging growth company” under the Jumpstart Our Business Startups Act which came into effect in
Overview of the Business
The membrane technology has been demonstrated in the following applications: to extract lithium from brine solutions or mining leach solutions; extracting fatty acids from vegetable oils as a superior refining process; to extract glycerols from biodiesel as a superior purification process; extracting radioactive ions from nuclear wastewater; to extract specific metal ions from mining leach solutions and waste effluents; and to remove ions from seawater for desalination, among others.
Current activity is mainly focused on: the continuation of the organization and the recruitment of targeted expertise; on the protection of the Company’s intellectual property assets; and the configuration of the most successful commercial pilot plant for lithium extraction, followed by the extraction of radioactive ions from nuclear wastewater and the refining of vegetable oils by removal of fatty acids; on the elimination of glycerols for the purification of biodiesel.
Impact of Events in
The Company’s activity and its basic research are carried out in
In addition, the Company operated offices in
Although the Company may rearrange some of its plans, it is not expected that the conflict in
Results of Operations
The following table summarizes the results of our operations during the three months ended
Three Months Ended March 31, 2022 2021 Change Revenues $ - $ - $ - Operating expenses 374,109 16,650 357,459 Other expense 13,781 - 13,781 Net profit (loss) (387,890 ) (16,650 ) (371,240 )
Earnings (loss) per common share (0.01) (0.00) (0.01)
The increase in operating expenses is the result of the new orientation of the Company’s activities following the acquisition of the Membrane technology on
Cash and capital resources
Our operational activities used
Our cash requirements are mainly for the continued development of the commercial pilot plant with the purchase of equipment and materials as well as operating expenses for the development of the pilot plant systems and its demonstration to customers. potential, as well as our payroll costs. Over the next 6 months, the Company is expected to open new head offices and begin organizing its initial production tool.
Management believes that the Company’s cash will not be sufficient to fund all of the Company’s obligations and commitments for the next twelve months. The Company has reached the stage of its development where it needs significant additional financing to be able to bring the first of its extraction processes into a marketable form. Management believes that the minimum funding necessary to achieve this is
Off-balance sheet arrangements
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 our financial condition, revenues or expenses, results of operations, liquidity or our capital expenditures or resources that are important to an investor in our securities.
Our operating results are not affected by seasonality.
The Company has relied on convertible debt financing as its primary source of funding. In the event of a high inflationary environment, this method of financing may become more expensive and may be less readily available. Our core business and operating results are not materially affected by inflation.
Critical accounting policies
Our financial statements and accompanying notes have been prepared in accordance with GAAP. The preparation of these financial statements requires management to make estimates, judgments and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. We continually evaluate the accounting policies and estimates used to prepare the financial statements. Estimates are based on historical experience and assumptions believed to be reasonable given current facts and circumstances. Actual amounts and results could differ from these estimates made by management. Certain accounting policies that require significant management estimates and are deemed material to our results of operations or financial condition. Our critical accounting estimates are further described in Note 2 to our unaudited financial statements contained herein.
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