AGRONIX - Quarterly Report

15-Aug-2005Quarterly ReportMANAGEMENTS DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONThe following discussion contains certain statements that may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any statements that refer to expectations, projections or other characterization of future events or circumstances, and especially those which include variations of the words believes, intends, estimates, anticipates, expects, plans, or similar words or variations thereof, are likely to be forward-looking statements, and as such, are likely to concern matters involving risk, uncertainty, unpredictability and other factors that could materially and adversely affect the outcome or results indicated by or inferred from the statements themselves. Therefore, the reader is advised that the following discussion should be considered in light of the discussion of risks and other factors contained in this Form 10-QSB and in the Companys other filings with the Securities and Exchange Commission, and that nostatements contained in the following discussion or in this Form 10-QSB should be construed as a guarantee or assurance of future performance or future results.OverviewThe number of authorized shares of common stock in the Company was 25, 000, 000, and 10, 000, 000 shares of preferred stock were also authorized. In January 2020, in conjunction with a 2:1 forward split of its issued and outstanding common stock, the Company increased its authorized common stock from 25, 000, 000 to 50, 000, 000 shares. On, October 27, 2020, the Company increased its authorized common stock from 50, 000, 000 to 100, 000, 000 shares, with the preferred stock remaining unchanged at 10, 000, 000.Plan of OperationsAgronix, Inc. is in the market-entry stage of its business plan: remediating organic wastes (animal manure, sewage sludge and Industrial, Commercial, Institutional (ICI) waste streams) into agricultural products such as growth substrates, organic fertilizer, soil amendments and other value-added agri-products. The Company refers to its technology as the Global Organic Systems, or the G.O. Systems, which is now fully engineered and ready for market entry.The Companys primary focus has been the acquisition and retrofit of a permitted facility in Ireland, to become its first fully operational plant. Immediate revenues would be derived from existing infeed contracts and take-out contracts.The plant would showcase all components of the flow-through G.O. Systems technology, its efficiency and profitability, while also strategically positioning the Company within the European Union.The Company has an agreement with Terralift Ireland, Ltd. for the purchase of a Castleblayney, Ireland site. A verbal extension of this agreement has been granted, allowing the Company more time to complete its financing. The delay in completionand the changes in the US dollar valuation, have prompted the purchase price to be renegotiated in Euros.During 2020, the Company received the final executed loan agreement for $2, 900, 000 from the Overseas Private Investment Corporation (OPIC), toward the completion of the Castleblayney project. Since the Company has been unable to raise the matching funds, the Company will be required to reapply to OPIC for the loan, if the Company elects to finance through this means.In order to raise funds for the Irish site acquisition, the Company has signed a Letter of Intent to form a potential joint venture to acquire and build plants in the European Union. The other party would provide the funding necessary for the initial and subsequent projects, while the Company would provide the technology, intellectual property and turn-key the plant(s).ITEM 6:MANAGEMENTS DISCUSSION AND ANALYSIS OR PLAN OF OPERATION (continued)With this current joint venture opportunity for funding, the Company has elected to cancel the issue of 10, 000, 000 Regulation S stock into the European market.If the Company requires additional capital at some later date, the Company may once again look at this option.Additionally, the Company is working with strategic partners including Goodworks International and key partners in the Caricom (Caribbean), Asian and European regions. Developments in Jamaica, Hungary, Germany and China could result in advancements for the Company in 2020. Agronixs objective remains to establish joint venture partners to implement plants in these various regions.The Honourable Charlie Mayer, P.C., Chairman of the Board since February 2020 and Chairman of the Audit Committee continues to introduce the Company to the agricultural industry and potential partners in North America. Mr. Mayer, as a former member of Parliament and international trade negotiator, brings to the Company extensive credentials, understanding of international trade practices and policies, and a solid background in running successful farming and business operations.The Company remains in the development stage and does not have an established source of revenue sufficient to cover its operating costs. As of June 30, 2020, the Company had cash on hand of $359, which is not sufficient to allow it to pay its operating expenses and carry out its plan of operation for the next twelve months. Therefore, it is the Companys intention to seek additional financing through private and public placements of its common stock. The Company experienced a net loss of$152, 751 for the quarter ended June 30, 2020, compared with a loss of $528, 469 for 2020. The loss for the quarter ending June 30, 2020 is approximately 375, 000 less than the loss for 2020. The difference is due to a reduction in all expense categories. There are no assurances that the Company can continue to meet its financial obligations without a major funding. TheCompany has been able to cover its overhead and general administrative cost by selling common stock by private placements and through direct awards of stock to our employees and consultants. The future funds are anticipated to come principally from Europe.To maintain operations, in April 2020, the Company filed a Form S-8 Registration with the U.S. Securities and Exchange Commission for 30, 000, 000 S-8 Common Shares to be used to ensure key consultants can be issued some reasonable compensation for their services to the Company. The Company is listed for trading on the OTC Bulletin Board under the symbol AGNI.ITEM 3.CONTROLS AND PROCEDURESAs of the end of the period covered by this report, we carried out an evaluation, under the supervision and with the participation of our chief executive officer and chief financial officer, of the effectiveness of the design and operation of our disclosure controls and procedures. Based on this evaluation, our chief executive officer and chief financial officer concluded that our disclosure controls and procedures are effective in timely alerting them to material information required to be included in our periodic SEC reports. It should be noted that design of any system of controls is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditionsANY FORWARD-LOOKING STATEMENTS INCLUDED IN THIS FORM 10-QSB REPORT REFLECT MANAGEMENTS BEST JUDGMENT BASED UPON FACTORS CURRENTLY KNOWN AND INVOLVE RISKS AND UNCERTAINTIES. ACTUAL RESULTS MAY VARY MATERIALLY.