LUX AMBER, CORP. MANAGEMENT’S REVIEW AND ANALYSIS OF FINANCIAL POSITION AND RESULTS OF OPERATIONS (Form 10-Q)
The following discussion and analysis of the financial condition and results of operations of the Company should be read in conjunction with its unaudited condensed interim consolidated financial statements and the accompanying notes included in this quarterly report on Form 10-Q and the audited financial statements and related notes as of and for the year ended
The discussion contained in this document contains “forward-looking statements” that involve risks and uncertainties. These statements can be identified by the use of terminology such as “believes”, “expects”, “could”, “should” or anticipates “or by expressing such terminology negatively or similar expressions or by discussion on strategy. Form 10-Q should be read as applicable to all related forward-looking statements, wherever they appear in this Form 10-Q. The actual results of the Company could differ materially from those discussed in this report.
ACTIVITY AND PLAN OF OPERATION
· Chemicals to protect surfaces in asphalt handling equipment · Chemicals to control the reproduction of pests · Military Chemical, Biological, Radiological, Nuclear, and Explosives (CBRNE) sites · Commercial nuclear power plants and nuclear-powered ships · Hazardous toxic industrial chemical and toxic industrial material clean-up
The Company’s business telephone number is 972-214-9764. The Company’s stock symbol is LXAM.
LAC has three (3) wholly owned subsidiaries (collectively with LAC, the “Company”):
The company’s products use all-natural and renewable resources, contain no hazardous chemicals or additives, and offer “green” solutions to its customers. ICS’s product line includes asphalt release agents, industrial cleaners, environmental sanitizing gels, odor control agents and user-friendly cleaners for a wide range of uses, including construction, environmental remediation, cleaning of hazardous materials, nuclear decommissioning, industrial cleaning and odor control. SPE products are designed for the elimination and control of pests.
LIQUIDITY AND CAPITAL RESOURCES
During the three month period ended
The company made other acquisitions of products and assets. Since this acquisition, assets have been judicially added which, combined, provide basic application equipment and rolling stock to support revenue significantly above the revenue generated in May, June and July of the previous year. During the current quarter, these combined assets generated revenues of forty-six
 percent more than in the previous quarter. In June 2021, the company’s ability to increase revenue was enhanced by the addition of a company president who has a broad network within the industries served by the company; therefore, management believes that the growth rate of revenues and asset base margins will be sustained.
The increase in total assets is mainly due to its increase in accounts receivable and inventory due to slower customer payment times due to cash flow issues across the industry due to COVID-19 and a build-up of inventory to cope with increased sales.
RESULTS OF OPERATIONS
Comparison of the completed three-month period
For the three-month period ended
Cost of goods sold decreased as a percentage of revenue due to a change in the mix of products sold during the period and increases in gross selling prices on all products offered by the Company. The selling price increase was thirty-five  percent to hundred  percent.
For the three-month period ended
in general and administrative expenses,
in depreciation of assets. For the three-month period ended
The decrease is mainly due to 1) lower travel costs due to more efficient use of mobile assets; 2) shift the burden of delivery costs to the customer; 3) Improvement of cost accounting processes; 4) Improving purchasing processes by sourcing raw materials from multiple suppliers and purchasing in larger quantities.
19 GOING CONCERN
The accompanying consolidated financial statements are presented on a going concern basis. The Company’s financial situation raises substantial doubts as to its ability to continue operating. The Company has limited liquidity, its current liabilities exceed its current assets
OFF-BALANCE SHEET ARRANGEMENTS
There are no transactions, arrangements, obligations (including any obligations) or other off-balance sheet relationships with non-consolidated entities or other persons that have or could have a material effect on the financial condition, changes in the financial condition, income or expenses, results of operations, liquidity, capital expenditures or capital resources of the Company.
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