K92 Mining Inc. — Audit Report / Information 2021

Jun 9, 2023

WORLD OUTFITTERS CORPORATION SAFARI NORDIK

Financial Statements

November 30, 2021 and 2020

(expressed in Canadian Dollars)

SHIM & Associates LLP Chartered Professional Accountants Suite 900 – 777 Hornby Street Vancouver, B.C. V6Z 1S4 T: 604 559 3511 | F: 604 559 3501

S H I M

INDEPENDENT AUDITOR’S REPORT

To the Shareholders of World Outfitter Corporation Safari Nordik

Opinion

We have audited the accompanying financial statements of World Outfitter Corporation Safari Nordik (the “Company”), which comprise the statement of financial position as at November 30, 2021 and 2020, and the statements of loss and comprehensive loss, changes in equity and cash flows for the years then ended, and notes to the financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Company as at November 30, 2021 and 2020, and its financial performance and cash flows for the years then ended in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (IFRS).

Basis for Opinion

We conducted our audits in accordance with Canadian generally accepted auditing standards. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in Canada, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Material Uncertainty Related to Going Concern

We draw attention to Note 1 of the financial statements, which indicates that a material uncertainty exists that may cast significant doubt on the Company’s ability to continue as a going concern. Our opinion is not modified in respect of this matter.

Other Information

Management is responsible for information other than the financial statements and our audit report thereon.

Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information, and in doing so, consider whether the other information is materially inconsistent with the financial statements, or our knowledge obtained in the audit or otherwise appears to be materially misstated.

If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We are not aware of any other information at this time.

Responsibilities of Management and Those Charged with Governance for the Financial Statements

Management is responsible for the preparation and fair presentation of the financial statements in accordance with IFRS, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Company’s financial reporting process.

SHIM & Associates LLP Chartered Professional Accountants

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Canadian generally accepted auditing standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

The engagement partner on the audit resulting in this independent auditor’s report is Dong H. Shim.

“SHIM & Associates LLP”

CHARTERED PROFESSIONAL ACCOUNTANTS

Vancouver, Canada 2 February 2023

World Outfitters Corporation Safari Nordik Statements of Financial Position

As at November 30, 2021 and 2020

(Expressed in Canadian dollars)

World Outfitters Corporation Safari Nordik tatements of Financial Position s at November 30, 2021 and 2020 Expressed in Canadian dollars)
Note 2021 $	2020 $
TOTAL ASSETS -	-
LIABILITIES AND EQUITY Current liabilities Accounts payable and other liabilities 58,465 Loan 5 17,500	27,874 -
75,965	27,874
Equity Share capital 6 1,852,782 Deficit (1,928,747)	1,852,782 (1,880,656)
(75,965)	(27,874)
TOTAL LIABILITIES AND EQUITY -	-

Reporting entity, nature of operations and going concern (Note 1)

On behalf of the Board of Directors:

"Creenagh Flynn" Creenagh Flynn, Director

"Mikael Lundgren"

Mikael Lundgren, Director

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World Outfitters Corporation Safari Nordik Statements of Loss and Comprehensive Loss

For the years ended November 30, 2021 and 2020 (Expressed in Canadian dollars)

World Outfitters Corporation Safari Nordik tatements of Loss and Comprehensive Loss or the years ended November 30, 2021 and 2020 Expressed in Canadian dollars)
2021 $	2020 $
Operating expenses Professional fees 45,591 Filing fees 2,500	15,524 -
Net loss and comprehensive loss (48,091)	(15,524)
Lossper share - basic and diluted (0.004)	(0.001)
Weighted average number of common shares outstanding - basic and diluted 12,500,000	12,500,000

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World Outfitters Corporation Safari Nordik Statements of Changes in Equity

For the years ended November 30, 2021 and 2020

(Expressed in Canadian dollars)

World Outfitters Corporation Safari Nordik Statements of Changes in Equity For the years ended November 30, 2021 and 2020 (Expressed in Canadian dollars)
Number of Shares Share Capital $ Deficit $	Total equity $
Balance, December 1, 2020 12,500,000 1,852,782 (1,880,656) Net loss - - (48,091)	(27,874) (48,091)
Balance, November 30, 2021 12,500,000 1,852,782 (1,928,747)	(75,965)
Number of Shares Share Capital $ Deficit $	Total equity $
Balance, December 1, 2019 12,500,000 1,852,782 (1,865,132) Net loss - - (15,524)	(12,350) (15,524)
Balance, November 30, 2020 12,500,000 1,852,782 (1,880,656)	(27,874)

World Outfitters Corporation Safari Nordik Statements of Changes in Cash Flows

For the years ended November 30, 2021 and 2020 (Expressed in Canadian dollars)

tatements of Changes in Cash Flows or the years ended November 30, 2021 and 2020 Expressed in Canadian dollars)
	Note	2021	2020
		$	$
Operating activities
Net loss for the year		(48,091)	(15,524)
Changes in non-cash working capital
Accounts payable and other liabilities		30,591	15,524
Cash used in operating activities		(17,500)	-
Financing activities
Proceeds from loan	6	17,500	-
Cash provided from financing activities		17,500	-

Cash, beginning and end of the year

- -

World Outfitters Corporation Safari Nordik Notes to the Financial Statements For the years ended November 30, 2021 and 2020 (Expressed in Canadian dollars)

1. REPORTING ENTITY, NATURE OF OPERATIONS AND GOING CONCERN

World Outfitters Corporation Safari Nordik, (“WOC” or “the Company”), was incorporated under the Canada Business Corporations Act on May 30, 1988. The Company terminated its operations in 2011. On July 21, 2011, the company's Securities were delisted from the TSX Venture Exchange and are not currently trading on any exchanges. The Company obtained its certificate of revival on December 10, 2020. The address of the Company’s registered office is 240, Des Fondateurs Street, Ste-Madeleine, Québec, J0H 1S0.

The Company is actively looking for new business opportunities.

Since March 2020, several measures have been implemented in Canada and the rest of the world in response to the increased impact from the novel coronavirus (COVID-19). While the impact of COVID19 is expected to be temporary, the current circumstances are dynamic and the impacts of COVID-19 on business operations cannot be reasonably estimated at this time. The Company anticipates this could have an adverse impact on its business, results of operations, financial position and cash flows in the next 12 months.

Going Concern

These financial statements have been prepared on a going concern basis, which contemplates the realization of assets and discharge of liabilities at their carrying values in the ordinary course of operations for the foreseeable future.

The Company currently is not engaged in any activities and is in the process of getting its filing documents up to date to have its shares relisted and be able to enter into a qualifying transaction to have future operations.

During the year ended November 30, 2021, the Company has an accumulated deficit of $1,928,747. The Company’s ability to continue as a going concern is dependent upon its ability to close a qualifying transaction and raise additional financing which will allow for settlement of debt as detailed above and to have future operations.

The Company's ability to continue as a going concern is dependent upon the continued financial support of shareholders and lenders, its ability to attain profitable operations and generate funds therefrom and/or its ability to continue to obtain equity or debt capital to obtain the necessary financing sufficient to meet current and future obligations. These factors indicate the existence of a material uncertainty that may cast substantial doubt on the ability of the Company to continue as a going concern.

These financial statements do not reflect the adjustments or reclassification of assets and liabilities which would be necessary if the Company were unable to continue as a going concern. Such adjustments could be material.

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World Outfitters Corporation Safari Nordik Notes to the Financial Statements For the years ended November 30, 2021 and 2020 (Expressed in Canadian dollars)

2. BASIS OF PREPARATION

2.1 Statement of compliance

The financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”) and interpretations of the IFRS Interpretations Committee (“IFRIC”).

These financial statements were approved and authorized by the Board of Directors of the Company on February 2, 2023.

2.2 Basis of presentation

The financial statements have been prepared on the historical cost basis. The Company’s reporting and functional currency is Canadian dollars, which is the currency of the primary economic environment in which the Company operates.

2.3 Functional and presentation currency

All figures presented in the financial statements are reflected in Canadian dollars, which is the functional and presentation currency of the Company.

2.4 Use of management estimates, judgments and measurement uncertainty

The preparation of these financial statements requires management to make judgments and estimates and form assumptions that affect the reported amounts of assets and liabilities at the date of these financial statements and reported amounts of revenues and expenses during the reporting period. Such estimates primarily relate to unsettled transactions and events as at the date of these financial statements. On an ongoing basis, management evaluates its judgments and estimates in relation to assets, liabilities, revenues, and expenses. Management uses historical experience and various other factors it believes to be reasonable under the given circumstances as the basis for its judgments and estimates. Actual outcomes may differ from these estimates under different assumptions and conditions. Significant estimates and judgments made by management in the preparation of these financial statements are outlined below:

a) The following area requires management’s critical judgment:

Going concern

The evaluation of the Company's ability to continue as a going concern, to raise additional financing in order to cover its operating expenses and its obligations for the upcoming year requires significant judgment-based assumptions including the probability that future events are considered reasonable according to the circumstances. Please refer to Note 1 for further information.

Recognition of deferred tax assets and measurement of income tax expense

The estimation of income taxes includes evaluating the recoverability of deferred tax assets based on assessment of the Company's ability to use the underlying future tax deductions against future taxable income prior to expiry of those deductions. Management assesses whether it is probable that some or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income. If changes were made to management's assessment regarding the Company’s ability to use future tax deductions, the Company could be required to recognize more or fewer deferred tax assets, and future income tax provisions or recoveries could be affected.

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World Outfitters Corporation Safari Nordik Notes to the Financial Statements For the years ended November 30, 2021 and 2020 (Expressed in Canadian dollars)

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The principal accounting policies applied in the preparation of these financial statements are set out below.

3.1 Equity

The Company’s common shares are classified as equity instruments. Incremental costs directly related to the issue of new shares, warrants or options are shown in equity as a deduction, net of tax, from the proceeds.

3.2 Financial Instruments

A) Financial Assets:

i. Recognition and initial measurement

Trade receivables are initially recognized when they are originated. All other financial assets and financial liabilities are initially recognized when the Company becomes a party to the contractual provisions of the instrument.

A trade receivable without a significant financing component is initially measured at the transaction price. All other financial asset and financial liabilities are initially measured at fair value plus or minus, for an item not at fair value through profit or loss, transaction costs that are directly attributable to its acquisition or issue.

ii. Classification and subsequent measurement

On initial recognition, financial assets are classified and measured based on the business model in which they are held and the characteristics of their contractual cash flows. The primary measurement categories for financial assets are: measured at amortized cost, fair value through other comprehensive income (“FVTOCI”) and fair value through profit or loss (“FVTPL”).

A financial asset is measured at amortized cost if it meets both of the following conditions and is not designated as at FVTPL:

– it is held within a business model whose objective is to hold assets to collect contractual cash flows; and

– its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

All financial assets not classified as measured at amortized cost, as described above, or at FVOCI are measured at FVTPL. This includes all derivative financial assets.

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World Outfitters Corporation Safari Nordik Notes to the Financial Statements For the years ended November 30, 2021 and 2020 (Expressed in Canadian dollars)

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

The Company recognizes a loss allowance for the expected credit losses associated with its financial assets, other than financial assets measured at fair value through profit or loss. Expected credit losses are measured to reflect a probability-weighted estimate of credit losses, the time value of money, and reasonable and supportable information regarding past events, current conditions and forecasts of future economic conditions.

The Company assesses whether a financial asset is credit-impaired at the reporting date. Regular indicators that a financial instrument is credit-impaired include significant financial difficulties as evidenced through borrowing patterns or observed balances in other accounts and breaches of borrowing contracts such as default events or breaches of borrowing covenants. For financial assets assessed as credit-impaired at the reporting date, the Company continues to recognize a loss allowance equal to lifetime expected credit losses.

For financial assets measured at amortized cost, loss allowances for expected credit losses are presented in the statement of financial position as a deduction from the gross carrying amount of the financial asset. Given the limited exposure of the Company to credit risk, no loss allowance has been recognized as management believes any such impairment will not have a significant impact on the financial statements.

Financial assets are written off when the Company has no reasonable expectations of recovering all or any portion thereof.

The Company had no financial assets at November 30, 2021 and 2020.

B) Financial liabilities – Classification, subsequent measurement and gains and losses

Financial liabilities are classified as measured at amortized cost or FVTPL.

A financial liability is classified as at FVTPL if it is classified as held-for-trading, it is a derivative or it is designated as such on initial recognition. Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any interest expense, are recognized in profit or loss.

Other financial liabilities are subsequently measured at amortized cost using the effective interest method. Interest expense and foreign exchange gains and losses are recognized in profit or loss. Any gain or loss on derecognition is also recognized in profit or loss.

3.3 Taxation

Income tax expense consisting of current and deferred tax expense is recognized in profit or loss.

Current tax

Current tax expense is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at the end of the reporting period, adjusted for amendments to tax payable with regards to previous years. Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted by the date of the statement of financial position.

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World Outfitters Corporation Safari Nordik Notes to the Financial Statements For the years ended November 30, 2021 and 2020 (Expressed in Canadian dollars)

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Deferred tax

Deferred tax assets and liabilities and the related deferred income tax expense or recovery are recognized for deferred tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using the enacted or substantively enacted tax rates expected to apply when the asset is realized, or the liability settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that substantive enactment occurs.

A deferred tax asset is recognized to the extent that it is probable that future taxable income will be available against which the asset can be utilized. To the extent that the Company does not consider it probable that a deferred tax asset will be recovered, the deferred tax asset is reduced.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority and the Company intends to settle its current tax assets and liabilities on a net basis.

3.4 Basic and diluted loss per share

The basic loss per share is computed by dividing the net loss for the period by the weighted average number of common shares outstanding during the period. The diluted loss per share reflects the potential dilution of common share equivalents, such as outstanding stock options or warrants and contingent share consideration, in the weighted average number of common shares outstanding during the period, if dilutive. The “treasury stock method” is used for the assumed proceeds upon the exercise of the options that are used to purchase common shares at the average market price during the year. Shares to be issued have been considered outstanding from the date of their issuance for the purposes of basic loss per share calculations.

Standards and interpretations not yet adopted

Certain new standards, interpretations and amendments to existing standards issued by the IASB or the International Financial Reporting Interpretations Committee (IFRIC) that are not yet effective up to the date of issuance of the Company’s financial statements are listed below.

Amendments to IAS 1, Presentation of Financial Statements

IAS 1 Presentation of Financial Statements has been amended for annual reporting periods beginning on or after January 1, 2023 with earlier application permitted. The amendments clarify the requirements on determining if a liability is current or non-current. As part of its amendments, the IASB has removed the requirement for a right to be unconditional and instead, now requires that a right to defer settlement must have substance and exist at the end of the reporting period, and has clarified that a right to defer exists only if the entity complies with conditions specified in the loan agreement at the end of the reporting period, even if the lender does not test compliance until a later date. The amendments also state that settlement of a liability includes transferring an entity’s own equity instruments to the counterparty.

This new requirement may change how companies classify their debt. The Company is assessing the impact of adopting this amendment, which is to be applied retrospectively, on its financial statements.

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World Outfitters Corporation Safari Nordik Notes to the Financial Statements For the years ended November 30, 2021 and 2020 (Expressed in Canadian dollars)

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Amendments to IAS 1 and IFRS Practice Statement 2, Disclosure of Accounting Policy Information IAS 1 Presentation of Financial Statements and IFRS Practice Statement 2 Making Materiality Judgements have been amended to help entities provide accounting policy disclosures that are more useful to primary users of financial statements by:

• Replacing the requirement to disclose “significant” accounting policies under IAS 1 with a requirement to disclose “material” accounting policies. Under this, an accounting policy would be material if, when considered together with other information included in an entity’s financial statements, it can reasonably be expected to influence decisions that primary users of general purpose financial statements make on the basis of those financial statements.

• Providing guidance in IFRS Practice Statement 2 to explain and demonstrate the application of the four-step materiality process to accounting policy disclosures.

The amendments shall be applied prospectively. The amendments to IAS are effective for annual periods beginning on or after January 1, 2023, with earlier application permitted. The Company is assessing the impact of adopting this amendment on its financial statements.

Amendments to IAS 8, Definition of Accounting Estimates IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors has been amended for annual reporting periods beginning on or after January 1, 2023, with earlier application permitted. The update is to introduce a new definition of “accounting estimates” to replace the definition of “change in accounting estimates” and also include clarifications intended to help entities distinguish changes in accounting policies from changes in accounting estimates. Changes in accounting policies and corrections of errors are generally retrospectively accounted for, whereas changes in accounting estimates are generally accounted for on a prospective basis. The Company is assessing the impact of adopting this amendment on its financial statements.

4. CAPITAL MANAGEMENT

The Company manages its common shares and accumulated deficit as capital. The Company’s objectives when managing capital are to safeguard the Company’s ability to continue and to maintain a flexible capital structure which optimizes the costs of capital at an acceptable risk, as there are no external restrictions on it.

The Company manages the capital structure and makes adjustments to it in light of changes in economic conditions. To maintain or adjust the capital structure, the Company may attempt to issue new shares, issue new debt, acquire or dispose of assets in order to adjust the amount of cash on its balance sheet.

In order to facilitate the management of its capital requirements, the Company may prepare expenditure budgets that are updated as necessary depending on various factors, including successful capital deployment and general industry conditions.

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World Outfitters Corporation Safari Nordik Notes to the Financial Statements For the years ended November 30, 2021 and 2020 (Expressed in Canadian dollars)

5. LOAN

On February 8, 2021, the Company signed a loan agreement of $17,500, bearing no interest, maturing on February 8, 2022. Any amount owing, including principal, which is not paid when due will be deemed in arrears, and will bear interest while outstanding until repaid at the annual rate of ten percent (10%) from the date due until repaid. Interest on such arrears is compounded monthly and payable on demand.

6. SHAREHOLDER’S EQUITY

The following details the share capital of World Outfitters Corporation Safari Nordik.

a) Share Capital Authorized

The Company is authorized to issue an unlimited number of common shares without par value. All issued shares were fully paid.

b) Movements in the company’s share capital are as follows:

During the years ended November 30, 2021 and 2020, the Company did not have any share capital transactions.

7. INCOME TAXES

Income tax recovery differs from the amount that would be computed by applying the Canadian statutory income tax rate to income before taxes. The reasons for the differences are as follows:

Loss before taxes Statutory tax rate	Year ended November 30, 2021 $ Year ended November 30, 2020 $
	(48,091) (15,524) 26.50% 26.51%
Expected income recovery Change in statutory tax rate Unrecognized deductible temporary differences	(12,744) (4,115) - 1 12,744 4,114
Current tax expense	- -

The significant components of deferred income tax assets and liabilities are as follows:

Non-capital losses carried forward Unrecognized deferredincome taxassets	Year ended November 30, 2021 $ Year ended November 30, 2020 $
	20,131 7,387 (20,131) (7,387)
Net deferred income tax asset	- -

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World Outfitters Corporation Safari Nordik Notes to the Financial Statements For the years ended November 30, 2021 and 2020 (Expressed in Canadian dollars)

7. INCOME TAXES (continued)

As at November 30, 2021, the Company has non-capital losses carried forward of $27,874, which are available to offset future years’ taxable income. These losses expire as follows:

	$
2039	12,350
2040	15,524
2041	48,091
	75,965

8. FINANCIAL INSTRUMENTS – FAIR VALUE AND RISK MANAGEMENT

The Company does not acquire, hold or issue derivative financial instruments for trading purposes. The following table presents the classification, measurement subsequent to initial recognition, carrying values and fair values (where applicable) of financial assets and liabilities.

Classification Measurement Carrying Value Fair Value Carrying Value Year ended November 30, 2021 Year ended November 30, 2021 Year ended November 30, 2020 $ $ $	Fair Value Year ended November 30, 2020 $
Financial Liabilities Accounts payable and other liabilities Amortized cost 38,465 38,465 27,874 Loan Amortized cost 17,500 17,500 -	27,874 -
55,965 55,965 27,874	27,874

Short-term financial instruments, comprising accounts payable and other liabilities are carried at amortized cost which, due to their short-term nature, approximates their fair value.

Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in satisfying its financial obligations. The Company manages its liquidity risk by forecasting it operations and anticipating its operating and investing activities. The Company currently has no assets and is unable to discharge its liabilities until financing is obtained.

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