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Item 6. Management's Discussion and Analysis and Plan of Operation.
On March 28, 2007, our Registration Statement on Form SB-2 was declared effective. The SB-2 registered a minimum of 4,000,000 and a maximum of 8,000,000 common shares for sale through a direct offering at a price of $0.02 per share. From March 28, 2007 to May 15, 2007 we raised $86,195 through the sale of 4,309,750 common shares through this direct offering. There were no direct or indirect payments to directors, officers, affiliates or persons owning more than 10% of us made in connection with issuance of the shares sold in the direct offering. We closed the offering on May 15, 2006 having exceeded the minimum financing amount. We used such proceeds towards our general and administrative expenses.
Item 6. Management's Discussion and Analysis and Plan of Operation.
Overview
We have accumulated net loss of $127,141 since inception to October 31, 2007 and our auditors have issued a going concern opinion. This means that our auditors believe there is substantial doubt that we can continue as an on-going business for the next twelve months unless we can depend on the financial support of our shareholders and we are able to obtain the necessary equity financing to continue our operations.
We anticipate that our business will incur significant operating losses in the future. Our existence is dependent upon management's ability to develop profitable operations. By establishing a profitable market for our products and obtaining additional equity investment, we believe that we will attain profitable status and improve our liquidity
If operations and cash flow improve through future financing efforts, management believes that we can continue to operate. However, no assurance can be given that management's actions will result in profitable operations or the resolution of its liquidity problems.
We intend to spend approximately $145,000 over the course of the next year, mainly in the areas of development, production, administration, legal and accounting.
Results of Operations
These results indicate our operations prior to the merger with China Wind HK. Following the merger which occurred on November 27, 2007, we have adopted the business and financial statements for China Wind HK and have discontinued our dog beverage operations. All of our financial statements following this Annual Report on Form 10-KSB will reflect our operations after the merger.
Revenues
To date, we have generated no revenues from the sales of our dog beverage operations which we have ceased as of November 27, 2007 and no revenues from our management contract with Lian Chuang.
Expenses
During the fiscal year ended October 31, 2007, we incurred total expenses of $98,797 compared to $28,344 for the period from our inception on May 8, 2006 to October 31, 2006. Total expenses for fiscal 2007 included $15,062 in consulting fees, $38,872 in general and administrative costs, $3,209 in production expenses, and $41,654 in professional fees . Our general and administrative expenses consist of bank charges, travel, meals and entertainment, rent, foreign exchange, office maintenance, communication expenses (cellular, internet, fax, and telephone), courier, postage costs and office supplies.
