U.S. LIGHTING GROUP, INC. Administration’s Dialogue and Evaluation of Monetary Situation and Outcomes of Operations. (kind 10-Q)

This Administration’s Dialogue and Evaluation of Monetary Situation and Outcomes of
Operations consists of a variety of forward-looking statements that replicate
Administration’s present views with respect to future occasions and monetary
efficiency. You may determine these statements by forward-looking phrases akin to
“might,” “will,” “anticipate,” “anticipate,” “consider,” “estimate” and “proceed,” or
comparable phrases. These statements embrace statements relating to the intent, perception
or present expectations of us and members of our administration group in addition to the
assumptions on which such statements are primarily based. Potential traders are
cautioned that any such forward-looking statements are usually not ensures of future
efficiency and contain danger and uncertainties, and that precise outcomes might
differ materially from these contemplated by such forward-looking statements.
Readers are urged to fastidiously evaluate and take into account the assorted disclosures made
by us on this report and in our different studies filed with the
Trade Fee
precise outcomes to vary materially from these in forward-looking statements. We
undertake no obligation to replace or revise forward-looking statements to
replicate modified assumptions, the prevalence of unanticipated occasions or modifications
sooner or later working outcomes over time. We consider that our assumptions are
primarily based upon affordable knowledge derived from and recognized about our enterprise and
operations. No assurances are made that precise outcomes of operations or the
outcomes of our future actions is not going to differ materially from our
assumptions. Components that would trigger variations embrace, however are usually not restricted
to, anticipated market demand for our merchandise, fluctuations in pricing for
supplies, and competitors.
Basic Overview
of Florida
Firm acquired all the issued and excellent capital inventory of
Group, Inc.
Wyoming
to the
industrial LED lighting, each for retrofits and new development.
Via supplying Authentic Tools Producers (OEM’s) with digital
parts the Firm was launched to the Leisure Car (RV) Business.
Administration recognized a quick rising and underserved area of interest of small, tow-behind
absolutely molded fiberglass journey trailers. The Firm began creating a brand new
marketing strategy to create a luxurious 17′ Journey Camper to enchantment to younger
professionals working remotely in addition to retirees and different customers intrigued
by the travelling life-style.
On
an entirely owned subsidiary, to function its new model of modern journey
trailers. In the course of the second a part of 2021 the Firm closely invested in
Analysis and Improvement in addition to manufacturing planning for the 17′ Camper with
the aim of beginning camper deliveries in early 2022.
The Firm plans to develop its manufacturing footprint, improve manufacturing
methods, and develop extra merchandise within the RV, marine, composite housing, and
electronics sectors.
Outcomes of Operations for the Three Months Ended
Three Months Ended
Gross sales
Complete gross sales from persevering with operations for the three months ended the
2022
a rise of
our Cortes Campers subsidiary. In the course of the present interval all gross sales income was
from Cortes Campers subsidiary, whereas most of
discontinued and introduced as a part of discontinued operations.
11 Price of Items Bought
Price of products offered from persevering with operations for the three months ended the
the Firm’s Cortes Campers subsidiary, whereas most of
discontinued and introduced as a part of discontinued operations.
Working Bills
Promoting, common and administrative bills (“SG&A”) from persevering with
operations had been
to
or 9%. The lower over the prior 12 months could be primarily attributed to decreased
unhealthy debt expense of
We had no product improvement prices for the three months ended the
2022
lower of
RV, marine, composite housing, and electronics sectors. We’re presently a
distributer and never a producer.
Different Earnings / Expense
In the course of the three months ended the
months ended the
different revenue of
investments, and curiosity expense of
Internet Loss
We had a internet loss from persevering with operations of
ended
30, 2021
the unrealized loss on our investments within the present interval in comparison with the
unrealized achieve within the prior interval. For the three months ended
we additionally had
Outcomes of Operations for the Six Months Ended
Months Ended
Gross sales
Complete gross sales from persevering with operations for the six months ended the
2022
a rise of
via our Cortes Campers subsidiary. In the course of the present interval all gross sales
income was from Cortes Campers subsidiary, whereas most of
are discontinued and introduced as a part of discontinued operations.
Price of Items Bought
Price of products offered from persevering with operations for the six months ended the
30, 2022
2021
Firm’s Cortes Campers subsidiary, whereas most of
discontinued and introduced as a part of discontinued operations.
Working Bills
Promoting, common and administrative bills (“SG&A”) from persevering with
operations had been
3%. The rise over the prior 12 months could be attributed to elevated personnel
prices related to the Firm’s Cortes Campers Subsidiary.
12
We had no product improvement prices for the six months ended the
in comparison with
marine, composite housing, and electronics sectors. We’re presently a
distributer and never a producer.
Different Earnings / Expense
In the course of the six months ended the
months ended the
different revenue, associated occasion of
Internet Loss
We had a internet loss from persevering with operations of
ended
2021
the unrealized loss on our investments within the present interval. For the six months
ended
discontinued operations and a
Liquidity and Capital Sources
Modifications in Money Flows
Internet money utilized in working actions for the six months ended
was
of
Internet money supplied by investing actions was
ended
ended
securities and
proceeds of
from investments. Within the present interval we obtained
mounted property and
Internet money utilized in financing actions for the six months ended
was
compensation of
financing actions for the six months ended
included proceeds of
associated occasion.
Loans payable for persevering with operations consisted of the next as ofJune 30, 2022 :June 30, 2022 Secured promissory observe (a)$ 261,000 Car loans (b) 118,000 Convertible Notes (c) 58,000 Complete loans payable 437,000 Loans payable, present portion (107,000 )
Loans payable, internet of present portion
a. On
Industrial Capital Corp. within the principal quantity of$266,000 with curiosity at 9.49% each year and due onSeptember 10, 2030 . The mortgage requires 100 nineteen (119) month-to-month funds of$2,322 , with a ultimate balloon fee on the 100 twentieth (120) month, orSeptember 10, 2030 , of$224,835 . The mortgage is assured by the Firm and the Firm's former Chief Government Officer and secured by the Firm's actual property. The mortgage steadiness onDecember 31, 2021 , was$263,000 . In the course of the six months endedJune 30, 2022 , the Firm made principal funds of$2,000 , leaving a complete of$261,000 owed atJune 30, 2022 . 13
b. The Firm purchases automobiles for workers and analysis and improvement
actions. Usually, automobiles are offered or traded in on the finish of the car mortgage interval. The mixture car mortgage steadiness on three automobiles was$105,000 atDecember 31, 2020 , with an authentic mortgage interval of 72 to 144 months, and rates of interest of zero % to 10.99%. In the course of the 12 months endedDecember 31, 2021 , the Firm bought a car for$40,000 , with a 72 month mortgage time period, and an rate of interest of 4.15%, and made complete principal funds of$18,000 on its car loans, leaving an combination mortgage steadiness on three automobiles of$127,000 atDecember 31, 2021 . In the course of the six months endedJune 30, 2022 , the Firm made principal funds of$9,000 , leaving a complete of$118,000 owed atJune 30, 2022 .
c. The Firm issued convertible secured debentures (“Convertible Notes”) to
accredited traders fromDecember 2019 viaJune 2020 , with curiosity at 10% each year, a time period of eighteen months, and secured by all the property of the Firm and its subsidiaries. The Convertible Notes present a conversion proper, by which the principal quantity of the Convertible Notes, along with any accrued however unpaid curiosity, may very well be transformed into the Firm's widespread inventory at a conversion worth at$0.25 per share. The Convertible Notes steadiness onDecember 31, 2021 , together with accrued curiosity of$10,000 , was$60,000 . As ofJune 4, 2021 , the remaining Convertible Observe was not convertible into shares of widespread inventory for the reason that conversion rights expired onJune 4, 2021 , and the observe stopped accruing curiosity on its maturity date onJune 5, 2021 . The Observe has been reclassed from Convertible Observe to Loans Payable on the steadiness sheet.
Important Accounting Insurance policies and Estimates
Discuss with our Type 10-Okay for the 12 months ended
dialogue of our vital accounting insurance policies.
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