COCOLUV INC. Discussion and analysis by management of the financial situation and operating results. (form 10-Q)

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This section of this Form 10-Q includes a number of forward-looking statements that reflect our current views with respect to future events and financial performance. Forward-looking statements are often identified by words such as believe, expect, estimate, anticipate, intend, project and similar expressions, or words which by their nature refer to future events. You should not place undue certainty in these forward-looking statements. These forward-looking statements are subject to certain risks and uncertainties which could cause actual results to differ materially from our expectations.


Business Overview


CocoLuv Inc. (“CocoLuv Inc.“or the” Company “) has been incorporated into the State of nevada. We are a start-up company that plans to start operations as an online retailer offering has been incorporated into the State of nevada as a for-profit company on September 13, 2017 and established a year-end of May 31st. The Company intends to manufacture, market and sell a product line of 5 hair care products derived from Virgin coconut oil. The 5 initial products will be 3 for women and 2 for men.

CocoLuv Inc. is an emerging growth stage company that intends to manufacture, market and sell a proposed product line of 5 hair care products derived from
Virgin coconut oil. We currently have no products to sell, but we intend to create a hair care line that will initially consist of 5 products; 3 for women and 2 for men. Our products offered will be of superior quality in that they will have a basis of Virgin coconut oil. CocoLuv Inc. CocoLuv Inc. expects that it will derive its income from the sale of the products for which it is intended as follows: Hair Shine (for women), Curl Balm (for women), Hair Treatment (for women), Hair Pommade (for men, beards, mustaches) and Hair cream (for men). We do not anticipate any income before entering the retail business. Since we are currently in the development stage of our business, we cannot guarantee that we will be successful in online retail sales.

We have not earned any income to date. Our independent accountant has issued an audit opinion which includes a statement expressing a substantial doubt as to our ability to continue as a going concern.

Operating results Three and six month periods

or the three-month periods ended November 30, 2021 and November 30, 2020, we had no income. Expenses for the completed three-month period November 30, 2021 totaled
$ 24,692 resulting in a net loss of $ 24,962, compared to expenses for the three-month period ended November 30, 2020, totaled $ 9,001 resulting in a net loss of $ 9,001. The net loss for the three-month period ended November 30, 2021
is the result of the office and general expenses of $ 24,962 composed mainly of professional fees of $ 23,500; administration fees $ 655; phone charges from 28 $; rent charges of $ 179; transfer agent fees $ 297; and the bank charges of $ 33. Compared to expenses for the closed quarter November 30, 2020 is the result of the office and general expenses of $ 9,001 composed mainly of professional fees of $ 6,000; administration fees $ 1,833; phone charges from $ 27; rent charge of $ 312; transfer fees $ 796; and the bank charges of
$ 33. The increase in expenses for the three-month period ended November 30, 2021
compared to November 30, 2020 is mainly due to an increase in professional fees of $ 20,000 relating to the Depository trust company Registration fees.

For the completed six-month periods November 30, 2021 and November 30, 2020, we had no income. Expenses for the completed six-month period November 30, 2021 totaled
$ 32,916 resulting in a net loss of $ 32,916, compared to expenditure for the six-month period ended November 30, 2020, totaled $ 15,763 resulting in a net loss of $ 15,763. The net loss for the six-month period ended November 30, 2021
is the result of the office and general expenses of $ 32,916 composed mainly of professional fees of $ 30,145; administration fees $ 1,228; phone charges from $ 55; rent charges of $ 665; transfer agent fees $ 757; and the bank charges of $ 66. Compared to expenses for the closed semester November 30, 2020 is the result of the office and general expenses of $ 15,763 composed mainly of professional fees of $ 12,000; administration fees $ 2,333; phone charges from $ 55; rent charge of $ 513; transfer agent fees $ 796; and the bank charges of $ 66. The increase in expenses for the six-month period ended November 30, 2021 compared to November 30, 2020 is mainly due to an increase in professional fees of $ 20,000 relating to the Depository trust company
Registration fees.



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Capital resources and liquidity

There is substantial doubt that we can continue as a business for the next twelve months unless we raise additional capital. No substantial revenue is expected until we implement our plan of operations. With the exception of cash advances from our sole officer and director, our only source of liquidity at this time is investments by others through private placements. Since its inception, we have raised $ 18,900 through the sale of the Company’s ordinary shares. We need to raise additional funds to implement our strategy and stay in business.

From November 30, 2021, we have had $ 134 money compared to $ 352 of cash from May 31, 2021. We expect that our current cash and cash equivalents and cash generated from financing activities will be insufficient to meet our cash requirements for the next 12 months. To date, the Company has suffered operating losses since the creation of $ 117,058. Like a November 30, 2021, the Company has a working capital deficit of $ 98,168.

The Company requires additional funds to meet its ongoing obligations and to finance expected operating losses. Our auditor has expressed substantial doubts about our ability to continue to operate. The Company’s ability to continue as a going concern depends on raising capital to fund its initial business plan and ultimately achieve profitable operations. These financial statements do not include any adjustment relating to the recoverability and classification of the amounts of assets or the amounts recognized and the classification of liabilities that could result from this uncertainty.

We expect to incur marketing, professional and administrative expenses as well as expenses associated with maintaining our files with the Commission. We will need additional funds during this period and will seek to raise the additional capital required. If we are unable to secure additional financing, we may be required to reduce the scope of our business development activities, which could adversely affect our business plans, financial condition and results. operation. Additional financing may not be available on favorable terms, if at all. The Company intends to continue to finance its operations through equity or debt financing and advances from related parties. Any inability to raise capital as needed would have a material adverse effect on our business, financial condition and results of operations.

If we cannot raise additional funds, we will have to go out of business. As a result, investors in the Company’s common shares would lose their entire investment.

Off-balance sheet provisions

With the exception of the situation described in the section entitled Recourse to Capital and Liquidity, the Company has no off-balance sheet arrangement that has or is reasonably likely to have a current or future effect or change on the financial position, income or expenses of the company, results of operations, cash flow, capital expenditure or capital resources that are important to investors. The term “off-balance sheet arrangement” generally means any transaction, arrangement or other contractual arrangement to which an unconsolidated entity with the company is a party, under which the company has (i) any obligation arising from a guarantee contract, a derivative or variable interest; or (ii) a retained or contingent interest in assets transferred to that entity or to a similar arrangement which supports the credit, liquidity or market risk for those assets

Critical accounting conventions and estimates

The Company has implemented all the new accounting pronouncements that are in effect and that could have an impact on its financial statements and does not believe that there are any other new accounting pronouncements that could have a material impact on its financial statements. its financial condition or results of operations.


Risks


As a “small reporting company” as defined in Rule 12b-2 of the Exchange Act, we are under no obligation to provide the information required by this section.

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