TWO HANDS CORP MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (form 10-K) – Marketscreener.com

gocart.city
Grocery Originals
Cuore Food Services
Management’s Plan of Operation
The Company plans to continue to expand it reach to additional customers and geographies across Canada and continue to enhance its product offering with fresh, natural and organic foods.
V2 of the gocart.city mobile application will be a subsequent release. The Company plans to further expand the features of the mobile application. Following the completion of V2 of the mobile application, the Company will consider user behaviour and plans to expand the functionality and features of the mobile application on an on-going basis going forward.
The company plans to expand storage and warehousing, expand warehouse staff, add more delivery trucks and expand the delivery area.
Critical Accounting Policies and Estimates
We believe the following critical accounting policies, among others, may be impacted significantly by judgment, assumptions and estimates used in the preparation of the Financial Statements:
RECENT ACCOUNTING PRONOUNCEMENTS
Other recent accounting pronouncements issued by the FASB, including its Emerging Issues Task Force, the American Institute of Certified Public Accountants, and the Securities and Exchange Commission did not or are not believed by management to have a material impact on the Company’s present or future consolidated financial statements.
COMPARISON OF RESULTS FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021
Sales, Cost of goods sold, Gross profit:
Breakdown of sales by branch:
Our total operating expenses for the year ended December 31, 2022 was $17,845,327, compared to $3,267,279 for the year ended December 31, 2021, respectively. The increase in total operating expense is primarily due to an increase in stock-based compensation paid to officers, directors and consultants.
Advertising and travel includes expenses for online advertising, website, meals and entertainment.
Initial derivative expense of $36,521 for the year ended December 31, 2022 represents the difference between the fair value of the total embedded derivative liability of $186,521 and the cash received of $150,000 for the Series E Stock issued on October 6, 2022.
Initial derivative expense of $126,322 for the year ended December 31, 2021 represents the difference between the fair value of the total embedded derivative liability of $351,322 and the cash received of $225,000 for the convertible notes issued on February 23, 2021 and May 27, 2021.
QUARTERLY RESULTS OF OPERATIONS
The following is a summary of selected quarterly information that has been derived from the financial statements of the Company. This summary should be read in conjunction with the consolidated financial statements of the Company.
$ (6,278 ) $ 20,514 $ 19,117 $ 39,808 $ 19,808 $ 18,547 Operating expenses
$ (14,021,263 ) $ (759,913 ) $ (1,270,225 ) $ (693,259 ) $ (446,806 ) $ (856,989 ) Other income (expense)
$ (2,320,020 ) $ (614,198 ) $ (2,155,703 ) $ (7,397,246 ) $ (1,560,110 ) $ (2,052,979 ) Net loss for the period
$ (16,347,561 ) $ (1,353,597 ) $ (3,406,811 ) $ (8,050,697 ) $ (1,987,108 ) $ (2,891,421 ) Basic and diluted net loss per share $ (0.02 ) $ (0.01 )
LIQUIDITY AND CAPITAL RESOURCES
For the year ended December 31, 2022
Cash flows used in operating activities
Net cash used in operating activities (840,745 ) (557,873 ) (282,872) 51
Cash flows used in investing activities
$ % Net cash used in investing activities (10,749 ) (5,425 ) (5,324) 98
Our net cash (used in) provided by investing activities for the year ended December 31, 2022 and 2021 is ($10,749) and ($5,425), respectively. Our investing activities are purchases of a vehicle and computer and office equipment.
Cash flows from financing activities
Net cash from financing activities 350,194 1,072,408 (722,214) (67)
Our net cash provided by financing activities for the year ended December 31, 2022 and 2021 is $350,194 and $1,072,408, respectively.
As of December 31, 2022, we had cash of $17,137, working capital (deficiency) of $(591,376) and total liabilities of $1,924,171.
Our working capital as of December 31, 2022 and 2021 is as follows:
(1) Leases for retail space, equipment and warehousing is currently month to
OPERATING CAPITAL AND CAPITAL EXPENDITURE REQUIREMENTS
Years ended December 31, 2022 and 2021
Promissory Notes – Related Party
The Company is not anticipating any transactions.
CHANGES IN ACCOUNTING POLICIES INCLUDING INITIAL ADOPTION
Refer to Note 2 in the consolidated financial statements for the year ended December 31, 2022 and Note 2 in the consolidated financial statement for the year ended December 31, 2021 for information on accounting policies.
The main risks of the Company’s financial instrument are exposed to are credit risk, market risk, foreign exchange risk, and liquidity risk.
Refer to Note 2 in the consolidated financial statements for the year ended December 31, 2022 and Note 2 in the consolidated financial statements.
As of March 23, 2023, the following securities were outstanding:
Common stock: 193,226,548 shares
Series A Convertible Preferred Stock: 25,000
Series B Convertible Preferred Stock: 4,000
Series C Convertible Preferred Stock: 90,000
OFF-BALANCE SHEET TRANSACTIONS
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