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 Securities and
Trade Fee. Essential components presently recognized to Administration may trigger
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

US Lighting Group, Inc. (the “Firm”) was initially included within the State
of Florida on October 17, 2003, below the identify Luxurious Journey Corp., The
Firm acquired all the issued and excellent capital inventory of US Lighting
Group, Inc. (based in 2013 in accordance with the legal guidelines of the State of
Wyoming) on July 13, 2016, and the company identify was modified on August 9, 2016,
to the US Lighting Group, Inc. On the time the Firm designed and manufactured
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 January 11, 2021, the Firm shaped Cortes Campers, LLC (“Cortes Campers”),
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 June 30, 2022 In comparison with the
Three Months Ended June 30, 2021

Gross sales

Complete gross sales from persevering with operations for the three months ended the June 30,
2022 had been $49,000, in comparison with $1,000 for the three months ended June 30, 2021,
a rise of $48,000. The rise in gross sales is attributed to new gross sales via
our Cortes Campers subsidiary. In the course of the present interval all gross sales income was
from Cortes Campers subsidiary, whereas most of June 30, 2021, gross sales are
discontinued and introduced as a part of discontinued operations.

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Price of Items Bought

Price of products offered from persevering with operations for the three months ended the
June 30, 2022 had been $44,000, in comparison with $2,000 for the three months ended the
June 30, 2021. The June 30, 2022 value of products offered pertains to camper gross sales from
the Firm’s Cortes Campers subsidiary, whereas most of June 30, 2021 gross sales are
discontinued and introduced as a part of discontinued operations.

Working Bills

Promoting, common and administrative bills (“SG&A”) from persevering with
operations had been $325,000 for the three months ended the June 30, 2022, in contrast
to $358,000 for the three months ended the June 30, 2021, a lower of $33,000,
or 9%. The lower over the prior 12 months could be primarily attributed to decreased
unhealthy debt expense of $40,000 offset partially by elevated payroll expense of
$5,000.

We had no product improvement prices for the three months ended the June 30,
2022, in comparison with $6,000 for the three months ended the June 30, 2021, a
lower of $6,000. The lower is as a result of Firm altering its focus to the
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 June 30, 2022, we had complete different bills of
$80,000, together with: different revenue of $79,000, acknowledged a realized lack of
$49,000 and an unrealized lack of $117,000 from investments, curiosity revenue of
$1,000 associated to investments, and curiosity expense of $7,000. In the course of the three
months ended the June 30, 2021, we had complete different revenue of $204,000. We had
different revenue of $15,000, acknowledged an unrealized achieve of $204,000 from
investments, and curiosity expense of $24,000.

Internet Loss

We had a internet loss from persevering with operations of $400,000 for the three months
ended June 30, 2022, in comparison with $161,000 for the three months ended the June
30, 2021. Our total internet loss from persevering with operations elevated primarily to
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 June 30, 2021,
we additionally had $3,915,000 of revenue from the sale of discontinued operations and a
$301,000 internet loss from discontinued operations.

Outcomes of Operations for the Six Months Ended June 30, 2022 In comparison with the Six
Months Ended June 30, 2021

Gross sales

Complete gross sales from persevering with operations for the six months ended the June 30,
2022 had been $125,000, in comparison with $2,000 for the six months ended June 30, 2021,
a rise of $123,000. The rise in gross sales is attributed to new gross sales
via our Cortes Campers subsidiary. In the course of the present interval all gross sales
income was from Cortes Campers subsidiary, whereas most of June 30, 2021, gross sales
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 June
30, 2022 had been $112,000, in comparison with $3,000 for the six months ended the June 30,
2021. The June 30, 2022 value of products offered pertains to camper gross sales from the
Firm’s Cortes Campers subsidiary, whereas most of June 30, 2021 gross sales are
discontinued and introduced as a part of discontinued operations.

Working Bills

Promoting, common and administrative bills (“SG&A”) from persevering with
operations had been $591,000 for the six months ended the June 30, 2022, in comparison with
$575,000 for the six months ended the June 30, 2021, a rise of $16,000, or
3%. The rise over the prior 12 months could be attributed to elevated personnel
prices related to the Firm’s Cortes Campers Subsidiary.

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We had no product improvement prices for the six months ended the June 30, 2022,
in comparison with $39,000 for the six months ended the June 30, 2021, a lower of
$39,000. The lower is as a result of Firm altering its focus to the RV,
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 June 30, 2022, we had complete different expense of
$198,000 together with: different revenue of $94,000, acknowledged a realized lack of
$18,000 and unrealized lack of $274,000 from investments, curiosity revenue of
$3,000 associated to investments, and curiosity expense of $16,000. In the course of the six
months ended the June 30, 2021, we had complete different revenue of $187,000. We had
different revenue, associated occasion of $30,000, acknowledged an unrealized achieve of
$204,000 from investments, and curiosity expense, associated occasion of $56,000.

Internet Loss

We had a internet loss from persevering with operations of $776,000 for the six months
ended June 30, 2022, in comparison with $428,000 for the six months ended the June 30,
2021. Our total internet loss from persevering with operations elevated primarily on account of
the unrealized loss on our investments within the present interval. For the six months
ended June 30, 2021, we additionally had $3,915,000 of revenue from the sale of
discontinued operations and a $182,000 internet loss from discontinued operations.

Liquidity and Capital Sources

Modifications in Money Flows

Internet money utilized in working actions for the six months ended June 30, 2022,
was $732,000, as in comparison with internet money supplied by working actions
of $3,845,000, for the six months ended the June 30, 2021, which included
$3,915,000 internet revenue from the sale of discontinued operations.

Internet money supplied by investing actions was $1,202,000 for the six months
ended June 30, 2022, in comparison with internet money used of $3,459,000 for the six months
ended June 30, 2021. Within the prior interval we used $3,800,000 to spend money on buying and selling
securities and $159,000 to buy property and gear. This was offset with
proceeds of $400,000 from the sale of mounted property and $100,000 from proceeds
from investments. Within the present interval we obtained $35,000 from the sale of
mounted property and $988,000 from proceeds from investments..

Internet money utilized in financing actions for the six months ended June 30, 2022,
was $457,000 and included the compensation of $46,000 of loans payable, and
compensation of $411,000 of notes payable to a associated occasion. Internet money utilized in
financing actions for the six months ended June 30, 2021, was $408,000 and
included proceeds of $308,000 obtained from the sale of widespread inventory and
$177,000 from notes payable. Money obtained was offset by the compensation of
$159,000 of loans payable, and compensation of $734,000 of notes payable to a
associated occasion.

Loans payable for persevering with operations consisted of the next as of June
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 $ 330,000

a. On August 26, 2020, the Firm entered right into a mortgage settlement with Apex

    Industrial Capital Corp. within the principal quantity of $266,000 with curiosity at
    9.49% each year and due on September 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, or September 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 on December
    31, 2021, was $263,000. In the course of the six months ended June 30, 2022, the Firm
    made principal funds of $2,000, leaving a complete of $261,000 owed at June
    30, 2022.


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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 at December 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 ended
    December 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 at December 31, 2021. In the course of the six months ended
    June 30, 2022, the Firm made principal funds of $9,000, leaving a complete
    of $118,000 owed at June 30, 2022.

c. The Firm issued convertible secured debentures (“Convertible Notes”) to

    accredited traders from December 2019 via June 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
    on December 31, 2021, together with accrued curiosity of $10,000, was $60,000. As
    of June 4, 2021, the remaining Convertible Observe was not convertible into
    shares of widespread inventory for the reason that conversion rights expired on June 4, 2021,
    and the observe stopped accruing curiosity on its maturity date on June 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 December 31, 2021, for a full
dialogue of our vital accounting insurance policies.

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