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Item 2. Managements Discussion and Analysis of Financial Conditions and Results of Operations
Note Regarding Forward Looking Statements.
This quarterly report on Form 10-Q of Tomichi Creek Outfitters for the period ended April 30, 2015 contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbors created thereby. To the extent that such statements are not recitations of historical fact, such statements constitute forward-looking statements which, by definition, involve risks and uncertainties. In particular, statements under the Sections; Description of Business, Management's Discussion and Analysis of Financial Condition and Results of Operations contain forward-looking statements. Where, in any forward-looking statement, the Company expresses an expectation or belief as to future results or events, such expectation or belief is expressed in good faith and believed to have a reasonable basis, but there can be no assurance that the statement of expectation or belief will result or be achieved or accomplished.
The following are factors that could cause actual results or events to differ materially from those anticipated, and include but are not limited to: general economic, financial and business conditions; changes in and compliance with governmental regulations; changes in tax laws; and the costs and effects of legal proceedings.
You should not rely on forward-looking statements in this quarterly report. This quarterly report contains forward-looking statements that involve risks and uncertainties. We use words such as anticipates, believes, plans, expects, future, intends, and similar expressions to identify these forward-looking statements. Prospective investors should not place undue reliance on these forward-looking statements, which apply only as of the date of this report. Our actual results could differ materially from those anticipated in these forward-looking statements for many reasons, including the risks faced by Tomichi Creek Outfitters, Financial information provided in this Form 10-Q, for periods subsequent to April 30, 2015, is preliminary and remains subject to audit. As such, this information is not final or complete, and remains subject to change, possibly materially.
Plan of Operation
We are a development stage company with a plan of operation to provide clients with an opportunity to harvest a trophy size elk or deer or to enjoy a guided scenic tour on the western slopes of the Rocky Mountains. Our operations are located in Sargents, Colorado which is approximately four hours southwest from Denver. We are located just west of the continental divide surrounded by 12,000 to 14,000 foot mountain peaks. This territory is remote yet accessible with diverse wildlife which is adjacent to the 1.86 million acre Rio Grande National Forest.
On March 2, 2015, the registrant entered into a Business Acquisition Agreement under which the registrant acquired the business and assets of Grasshopper Staffing in exchange for $82,500 represented by 250,000 shares of common stock. The assets purchased include the logo and website, office supplies and office furniture.
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Grasshopper Staffing was founded in 2015 by Melanie Osterman, Melanie Osterman, Barbara Ianne, and Cheryl Zanotelli, as a solution to the staffing needs presented in the blossoming cannabis industry in Colorado. Grasshopper Staffing is an agency that serves the Colorado's cannabis employment needs by providing employee recruiting, training, securing proper credentials and ensuring compliance with the ever-changing local and state laws. Grasshopper Staffing specializes in providing budtenders, trimmers, janitorial, security, payroll, armored transport, edible production, infusion specialists, grow consultants, irrigation, retail sales, IT solutions, web design, and event services.
Results of Operations
The three and nine month periods ended April 30, 2015 and 2014
The Company generated revenue through its staffing subsidiary. Revenues for the three and nine month periods ended April 30, 2015 and 2014 were $32,716, $0, $32,716 and $0, respectively. For the same periods, April 30, 2015 and 2014, cost of revenue was $32,716, $0, $32,716 and $0, respectively.
For the three and nine month periods ended April 30, 2015 and 2014, the registrant recognized operating expenses of $6,119, $1,750, $16,200 and $6,688, respectively. Expenses for the year were comprised of costs mainly associated with professional fees, general and administrative expenses, accounting and office in fulfillment of compliance reporting of the public entity.
Net income (loss) for the three and nine month periods ended April 30, 2015 and 2014 was $14,446, ($1,750), $4,365 and ($6,688), respectively.
Liquidity and Capital Resources
The Company has financed its expenses and costs thus far through an equity investment by one of its shareholders. Tomichi Creek Outfitters received a Notice of Effectiveness on its filing Form S-1 from the Securities and Exchange Commission on February 3, 2014 to offer on a best-efforts basis 3,000,000 shares of its common stock at a fixed price of $0.01 per share. Tomichi Creek Outfitters closed its offering on July 3, 2014 and raised $30,000 by placing 3,000,000 common shares through its offering.
Management supported operations through advances and loans. If we continue to generate profits, we will increase our marketing and sales activity accordingly.
The Company as a whole may continue to operate at a loss for an indeterminate period thereafter, depending upon the performance of its business. In the process of carrying out its business plan, the Company will continue to identify new financial partners and investors. However, it may determine that it cannot raise sufficient capital in the future to support its business on acceptable terms, or at all. Accordingly, there can be no assurance that any additional funds will be available on terms acceptable to the Company or at all. The company is authorized to issue 200,000,000 shares of common stock.
We have no known demands or commitments and are not aware of any events or uncertainties as of June 15, 2015 that will result in or that are reasonably likely to materially increase or decrease our current liquidity.
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Critical Accounting Policies
We prepare our financial statements in conformity with GAAP, which requires management to make certain estimates and apply judgments. We base our estimates and judgments on historical experience, current trends and other factors that management believes to be important at the time the financial statements are prepared. Due to the need to make estimates about the effect of matters that are inherently uncertain, materially different amounts could be reported under different conditions or using different assumptions. On a regular basis, we review our critical accounting policies and how they are applied in the preparation of our financial statements.
While we believe that the historical experience, current trends and other factors considered support the preparation of our financial statements in conformity with GAAP, actual results could differ from our estimates and such differences could be material.
For a full description of our critical accounting policies, please refer to Item 7, Managements Discussion and Analysis of Financial Condition and Results of Operations in our 2014 Annual Report on Form 10-K.