Item 2. Management's Discussion and Analysis or Plan of Operation.
FORWARD-LOOKING STATEMENTS
This quarterly report contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These statements relate to future events or our future financial performance. In some cases, you can identify forward-looking statements by terminology such as "may", "should", "expects", "plans", "anticipates", "believes", "estimates", "predicts", "potential" or "continue" or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors, including the risks in the section entitled "Risk Factors", that may cause our or our industry's actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements.
Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. Except as required by applicable law, including the securities laws of the United States, we do not intend to update any of the forward-looking statements to conform these statements to actual results.
Our financial statements are stated in United States Dollars (US$) and are prepared in conformity with generally accepted accounting principles in the United States of America for interim financial statements. The following discussion should be read in conjunction with our financial statements and the related notes that appear elsewhere in this quarterly report.
As used in this quarterly report, the terms "we", "us", "our company", and "Jetblack" mean Jetblack Corp., unless otherwise indicated. All dollar amounts refer to US dollars unless otherwise indicated.
General
Our Business
We were incorporated on April 17, 2002, under the laws of the State of Nevada under the name Tortuga Mexican Imports Inc. Effective March 15, 2010, the Company changed its name to Jetblack Corp., by way of a merger with the Company’s wholly owned subsidiary Jetblack Corp., which was formed solely for the change of name.
We have commenced limited operations, and have generated revenue of $7,569 to date. We are still a development stage corporation.
Since March, 2012 our business focus has been developing an online
reservation system to access numerous private jet aircraft, airports worldwide and a network of pre-approved, safety-checked operators. We intend to develop a booking engine, which will provide real-time availability of small jets available for charter in certain areas and select the best option from the inventory of aircraft.
Results of Operations
Three months ended February 28, 2014 and 2013
During the three months ended February 28, 2014, we generated no revenue and incurred expenditures of $12,769 and posted losses of $12,769. During the three months ended February 28, 2013, we generated no revenue and incurred expenditures of $11,159 and posted losses of $11,159. The increase was due to increase in accounting and audit fees in 2014.
Six months ended February 28, 2014 and 2013
During the six months ended February 29, 2014, we generated no revenue and incurred expenditures of $17,437 and posted losses of $17,437. During the six months ended February 28, 2013, we generated no revenue and incurred expenditures of $15,960 and posted losses of $15,960. The increase was due to increase in filing, accounting and audit fees in 2014.
Financial Condition, Liquidity and Capital Resources
Our principal capital resources have been through issuance of common stock and shareholder loans.
At February 28, 2014, we had a working deficit of $28,079.
At February 28, 2014, our current and total asset was cash of $739 and our current and total liabilities were $28,818.
On March 19, 2014 the Company issued a promissory note to the director of the Company for cash proceeds of $40,000 at simple annual interest rate of 10%. The promissory note is unsecured and payable upon demand.
Plan of Operation and Funding
Over the next twelve months we believe we will need $50,000 to carry out our ongoing operations and to expand our operations which will come from funds currently available and additional financing.
We intend to raise the capital required through equity and/or debt financing. We have no agreements in place to do this at this time.
There are no assurances that we will be able to obtain additional funds required for our continued operations. In such event that we do not raise sufficient additional funds, we will consider alternative financing options, if any, or be forced to scale down or perhaps even cease our operations.
Recent Accounting Pronouncements
Management does not anticipate that the recently issued but not yet effective accounting pronouncements will materially impact the Company’s financial statements.
Off-balance Sheets Arrangements
As of the date of this Quarterly 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
We have funded our initial operations through the issuance of 67,352,000 shares of capital stock for net proceeds of $193,795 and advance from shareholder of $3,072. Due to the uncertainty of our ability to generate sufficient revenues from our operating activities and/or to obtain the necessary financing to meet our obligations and repay our liabilities arising from normal business operations when they come due, in their report on our financial statements for the fiscal year ended August 31, 2013, our registered independent auditors included additional comments indicating substantial doubt about our ability to continue as a going concern. Our financial statements contain additional note disclosures describing the circumstances that led to this disclosure by our registered independent auditors. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.
Management plans to continue to seek financing on favorable terms; however, there is no assurance that such financing can be obtained on favorable terms. If we are unable to generate sufficient revenue or obtain additional funds for our working capital needs, we may need to cease or curtail operations.