This report contains forward-looking statements that involve risks and uncertainties. We use words such as anticipate, believe, plan, expect, future, intend and similar expressions to identify these forward-looking statements. You should not place undue reliance on these forward-looking statements. The Company’s actual results could differ materially from those anticipated in these forward-looking statements for a number of reasons.
Plan of Operation
Legacy Ventures International, Inc. (“Legacy” or the “Company”), was incorporated on March 4, 2014 under the laws of the state of nevada.
Cash and capital resources
From December 31, 2021the Company’s main source of liquidity consisted of
$0 (June 30, 2021 – $22,780) in liquid. The Company has funded its operations through a combination of third party advances and the issuance of secured promissory notes and convertible promissory notes.
At August 13, 2021, the Company has issued a secured promissory note (“secured note”) to an accredited investor. The secured note has an aggregate principal amount of $40,000and is payable on August 13, 2022, (the “Maturity Date”) and bears an interest rate of 4% per annum and a moratorium interest rate of 18% per annum. The amount owing under the secured note is secured by the assets of the Company. The note is convertible, the terms of which are to be negotiated between the Company and the noteholder.
The Company suffered net losses which resulted in a total shareholder deficiency in the December 31, 2021, and is currently experiencing a lack of working capital which raises substantial doubt as to the Company’s ability to continue operations. The Company anticipates a net loss for the year ending June 30, 2022 and with cash requirements anticipated for the coming months, with no additional cash inflows from a corporate transaction, there is substantial doubt as to the Company’s ability to continue operations.
We may seek to obtain additional debt or equity to fund major business development initiatives. There is currently no agreement in place with a source of funding for the Company and there can be no assurance that the Company will be able to raise additional funds, or that such funds will be available on acceptable terms. Funds raised through future equity financing are likely to be significantly dilutive to current shareholders. Lack of additional funds will significantly affect the Company and its business, and may cause the Company to cease operations. Accordingly, shareholders could suffer a loss of their entire investment in the Company.
Net cash used in operating activities
In the six months ended December 31, 2021cash used in operations has been
$62,780 and $33,114 for the six months ended December 31, 2020, respectively. Cash flows used in operating activities resulted mainly from the settlement of accrued liabilities.
Net cash used in investment activities
No cash was used or provided by investing activities for the six months ended December 31, 2021 and 2020.
Net cash provided by financing activity
Liquidity was provided by the financing activity of $40,000 and $65,000respectively for the six months ended December 31, 2021 and 2020, with proceeds received from the issuance of a secured promissory note.
Results of Operations
For the three months ended December 31, 2021
Functionnary costs. Operating expenses for the three months ended December 31, 2021has been $8,344 compared to $12,766 for the three months ended December 31, 2020. Operating expenses decreased in the three months ended December 31, 2021 mainly due to lower professional fees.
Other income (expenses). There was no other income for the three months ended
December 31, 2021compared to other expenses for the three months ended
December 31, 2020.
Net profit (loss). Net loss for the three months ended December 31, 2021has been
$8,344compared to the net loss of $18,682 for the three months ended December 31, 2020.
For the six months ended December 31, 2021
Functionnary costs. Operating expenses for the six months ended December 31, 2021has been $17,504 compared to $27,332 for the six months ended December 31, 2020. Operating expenses decreased during the six months ended December 31, 2021
mainly due to lower professional fees.
Other income (expenses). Other income increased for the six months ended
December 31, 2021compared to other expenses for the half-year ended
December 31, 2020mainly due to gain on cancellation of secured promissory notes and convertible notes, gain on cancellation of interest payable and gain on cancellation of third-party advances and accrued liabilities.
Net profit (loss). Net income for the six months ended December 31, 2021has been
$254,674compared to the net loss of $36,895 for the six months ended December 31, 2020.
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 the Company’s financial position, changes in financial position, revenues or expenses, results of operations , cash, capital expenditures or capital resources that is important to investors.
The Company has no full-time employees, but uses other project-based contract employees to carry out the Company’s business. We use contract staff on an ongoing basis, primarily in connection with the filing of reports with the Security and Exchange Commission that require a high level of specialization for one or more of the service components offered.
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