NEWPOINT FINANCIAL CORP Management’s Discussion and Analysis of Financial Condition and Results of Operations. (Form 10-K)
The following analysis highlights the major factors that have affected our financial condition and results of operations as well as our liquidity and capital resources for the periods described. This discussion should be read in conjunction with our financial statements and related notes included in this report. This discussion contains forward-looking statements. Please see “Caution Regarding Forward-Looking Statements” for a discussion of the uncertainties, risks and assumptions associated with these forward-looking statements.
Critical Accounting Policies Use of Estimates
The preparation of financial statements in accordance with
Some of the Company’s accounting policies which we believe are most important to the representation of the Company’s financial condition and results of operations and which require management’s subjective judgments are described below to facilitate better understanding of our business activities. Management bases its judgments on its experience and on assumptions it deems reasonable and applicable in the circumstances.
We anticipate that the uncertainty and volatility in financial markets related to the COVID-19 pandemic will continue to impact society. The scope, duration and magnitude of the direct and indirect effects of the COVID-19 pandemic are changing rapidly and are difficult to anticipate.
We are subject to economic factors such as interest rates, inflation, foreign exchange rates, adverse reserve developments, regulations, changes in tax policy, political risks and other market risks that may impact our strategy, operations and results.
4 Revenue Recognition
The Company has not yet generated revenue from its planned activities.
Results of Operations
Comparison of operating results for the years ended
Revenues. The Company did not realize any income during the years ended
General and administrative expenses. The Company incurred general and administrative expenses of
Professional fees. The Company has incurred professional fees of
over the past years
Operating loss. As a result of general and administrative expenses and professional fees of the Company, the Company incurred an operating loss of
Other income (expenses). The Company incurred interest expense of
Net loss. As a result of the above, the Company incurred a net loss of
Cash and capital resources
Net cash provided by (used in) operating activities was
The net cash flows generated by investing activities were
Net cash provided by financing activities was
To date, the Company has been financially supported by related entities which are also owned by the main shareholders of the Company. The Company will continue to be financially supported by related parties until it generates sufficient cash flow to cover its expenditure needs or raises external capital.
Off-balance sheet arrangements
During the year, the company entered into a revolving credit facility with
The Company has entered into a Revolving Credit Facility Agreement (the “RCFA”) with
the Company has additional borrowings available of
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