Form 10-Q Tribal Rides Internation For: Jun 30

September 28, 2021 7:37 AM EDT

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Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

(Mark One)

 

x   QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
     
    For the quarterly period ended June 30, 2021

 

Or

 

  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934
     
    For the transition period from _______________________to___________________________

 

Commission File Number: 333-200344

 

Tribal Rides International Corp.

(Exact name of registrant as specified in its charter)

 

Nevada 37-1758469
(State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.)
   
26060 Acero, Mission Viejo, CA 92691
(Address of principal executive offices) (Zip Code)

 

(949) 434-7259

(Registrant’s telephone number, including area code)

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes  No 

  

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes  No 

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

  Large accelerated filer Accelerated filer
  Non-accelerated filer Smaller reporting company
      Emerging growth company

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes  No 

 

Securities registered pursuant to section 12(b) of the Act:

 

Title of Each Class   Trading Symbol(s)   Name of each exchange on which registered
Not applicable   Not applicable   Not applicable

 

The number of shares outstanding of the registrant’s common stock on September 27, 2021 was 36,057,500.

 

 

   

 

 

TABLE OF CONTENTS

 

PART I - FINANCIAL INFORMATION 2
Item 1.   Financial Statements. 2
Item 2.   Management's Discussion and Analysis of Financial Condition and Results of Operations. 12
Item 3.   Quantitative and Qualitative Disclosures About Market Risk. 17
Item 4.   Controls and Procedures. 17
   
PART II—OTHER INFORMATION 18
Item 5.   Other Information. 18
Item 6.   exhibits. 18
SIGNATURES 19

 

 

 

 2 

 

 

PART I - FINANCIAL INFORMATION

 

Item 1. Financial Statements.

 

Consolidated Financial Statements

 

Tribal Rides International Corp.

 

 

    Page
Balance Sheets as of June 30, 2021 (unaudited) and December 31, 2020   4
     
Statements of Operations (unaudited) for the six months ended June 30, 2021 and 2020   5
     
Statements of Stockholders’ Deficit (unaudited) for the six months ended June 30, 2021 and 2020   6
     
Statements of Cash Flows (unaudited) for the six months ended June 30, 2021 and 2020   7
     
Notes to the Unaudited Financial Statements   8

 

 

 

 

 3 

 

 

TRIBAL RIDES INTERNATIONAL CORP.

(formerly XINDA INTERNATIONAL CORP.)

BALANCE SHEETS

(Unaudited)

 

 

   June 30,
2021
  

December 31,

2020

 
ASSETS          
Current assets:          
Cash  $3,700   $ 
Total current assets   3,700     
Equipment, net   1,207     
Patents, net   4,312    3,273 
Total Assets  $9,219   $3,273 
           
LIABILITIES AND STOCKHOLDERS’ DEFICIT          
Current liabilities:          
Accounts payable and accrued liabilities  $27,926   $26,584 
Notes payable   45,000    40,000 
Due to related party   58,301    23,857 
Total current liabilities   131,227    90,441 
Total Liabilities   131,227    90,441 
           
Commitments and contingencies        
           
Stockholders’ deficit:          
Common stock, $0.0001 par value, 50,000,000 shares authorized; 36,057,500 shares issued and outstanding at June 30, 2021 and December 31, 2020   3,606    3,606 
Additional paid-in capital   87,979    87,979 
Accumulated deficit   (213,593)   (178,753)
Total Stockholders’ Deficit   (122,008)   (87,168)
Total Liabilities and Stockholders’ Deficit  $9,219   $3,273 

 

See accompanying Notes to the unaudited Financial Statements

 

 

 

 4 

 

 

TRIBAL RIDES INTERNATIONAL CORP.

(formerly XINDA INTERNATIONAL CORP.)

STATEMENTS OF OPERATIONS

(unaudited)

 

 

   For the Three Months Ended
June 30, 2021
   For the Three Months Ended
June 30, 2020
   For the Six Months Ended
June 30, 2021
   For the Six
Months Ended
June 30, 2020
 
                 
Operating expenses:                    
Selling and marketing expense  $1,700   $1,220   $2,200   $3,220 
General and administrative expense   13,556    7,073    31,585    11,581 
Total operating expense   15,256    8,293    33,785    14,801 
                     
Operating loss   (15,256)   (8,293)   (33,785)   (14,801)
                     
Other income (expense):                    
Interest expense   (555)   (500)   (1,055)   (1,000)
Total other income (expense)   (555)   (500)   (1,055)   (1,000)
                     
Loss before provision for income taxes   (15,811)   (8,793)   (34,840)   (15,801)
                     
Provision for income taxes                
                     
Net loss  $(15,811)  $(8,793)  $(34,840)  $(15,801)
                     
Weighted average shares basic and diluted   36,057,500    36,057,500    36,057,500    34,683,874 
                     
Weighted average basic and diluted loss per common share  $(0.00)  $(0.00)  $(0.00)  $(0.00)

 

See accompanying Notes to the unaudited Financial Statements

 

 

 

 5 

 

 

TRIBAL RIDES INTERNATIONAL CORP.

(formerly XINDA INTERNATIONAL CORP.)

STATEMENTS OF STOCKHOLDERS’ DEFICIT

(Unaudited)

 

 

   Common Stock  

Additional

Paid-In

   Accumulated   Total Stockholders’ 
   Shares   Amount   Capital   Deficit   (Deficit) 
Balance – December 31, 2020   36,057,500   $3,606   $87,979   $(178,753)  $(87,168)
Net loss               (19,029)   (19,029)
Balance – March 31, 2021   36,057,500    3,606    87,979    (197,782)   (106,197)
Net loss                  (15,811)   (15,811)
Balance – June 30, 2021   36,057,500   $3,606   $87,979   $(213,593)  $(122,008)

 

 

 

   Common Stock  

Additional

Paid-In

   Accumulated   Total Stockholders’ 
   Shares   Amount   Capital   Deficit   (Deficit) 
Balance – December 31, 2019   11,057,500   $1,106   $86,842   $(139,457)  $(51,509)
Shares issued in connection with Asset Purchase Agreement   25,000,000    2,500    1,137        3,637 
Net loss               (7,008)   (7,008)
Balance – March 31, 2020   36,057,500    3,606    87,979    (146,465)   (54,880)
Net loss                  (8,793)   (8,793)
Balance – June 30, 2020   36,057,500   $3,606   $87,979   $(155,258)  $(63,673)

 

 

See accompanying Notes to unaudited Financial Statements

 

 

 

 

 6 

 

 

TRIBAL RIDES INTERNATIONAL CORP.

(formerly XINDA INTERNATIONAL CORP.)

STATEMENTS OF CASH FLOWS

(unaudited)

 

  

For the Six

Months Ended

June 30,

2021

  

For the Six

Months Ended

June 30,

2020

 
Cash flows from operating activities:          
Net loss  $(34,840)  $(15,801)
Adjustment to reconcile net loss to net cash used in operating activities:          
Amortization   263    182 
Changes in operating assets/liabilities:          
Accounts payable and accrued liabilities   1,341    2,200 
Due to related party   34,445    13,419 
Net cash provided by operating activities   1,209     
           
Cash flows from investing activities:          
Capital expenditures   (2,509)    
Net cash used in investing activities   (2,509)    
           
Cash flows from financing activities:          
Proceeds from issuance of note payable   5,000     
Net cash provided by financing activities   5,000     
           
Net change in cash   3,700     
Cash, beginning of period        
Cash, end of period  $3,700   $ 
           
Supplemental disclosures of cash flow information          
Cash paid during the period for:          
Interest  $   $ 
Taxes  $   $ 
           
Supplemental disclosures of non-cash investing and financing activities:          
Shares issued for Asset Purchase Agreement  $   $3,637 

 

 

See accompanying Notes to the unaudited Financial Statements

 

 

 

 7 

 

 

TRIBAL RIDES INTERNATIONAL CORP.

(formerly XINDA INTERNATIONAL CORP.)

NOTES TO FINANCIAL STATEMENTS

(unaudited)

 

 

1. Organization and Business

 

Organization and Business

 

We were incorporated on May 19, 2014 in the State of Nevada as Trimax Consulting, Inc. with an initial business plan of providing real estate consulting services and purchasing tax liens. On March 16, 2017, Newfield Global Holdings Limited acquired 25.0 million shares of our common stock representing 96.3% of our then outstanding shares. Upon election of a new Board of Directors and appointment of new management, we altered our business plan to provide end-to-end Human Resource services including recruitment, executive search, campus recruitment, training, and a complete range of Human Resource outsourcing solutions to clients. On May 8, 2017, we filed an Amendment to our Articles of Incorporation changing our name to Xinda International Corp. On February 24, 2021, we filed an Amendment to our Articles of Incorporation changing our name to Tribal Rides International Corp. Our ticker symbol is XNDA.

 

As reported in our Form 8-K dated January 18, 2020, we entered into an Asset Purchase Agreement (the “Agreement”) effective January 10, 2020 with Tribal Rides, Inc., a Nevada corporation (“TribalRides”), and the shareholders of TribalRides (the “Shareholders”). Under the Agreement, we agreed to purchase a majority of the assets of TribalRides, consisting of patent and patent pending technologies in the area of digital transformation of transportation, in exchange for the issuance of 25,000,000 shares of our common stock. See Note 3 for further information.

 

As a result of our asset purchase described above, we are now engaged, in the research and development stage, in the business of digital transformation of transportation. The digital transportation enablement and enhancement platform provides fully automated dispatching and bookings management built for taxi companies, limousine companies and ride-sharing service providers. The platform gives customers an app-based experience and provides service providers a range of functions which include customer booking, accounts management, driver tracking, real-time notifications, auto dispatching algorithms, accounting and settlements, corporate account management as well as providing reporting and analytics. The platform has also shown to have a direct application in the B2B space in providing corporations with a more efficient taxi chit solution to combat fraud and excessive administration costs.

 

2. Summary of Significant Accounting Policies

 

Basis of Presentation

 

We have prepared the accompanying unaudited financial statements in conformity with generally accepted accounting principles in the United States of America pursuant to the rules and regulations of the United States Securities and Exchange Commission (“SEC”). In the opinion of management, all adjustments and disclosures necessary for a fair presentation of these financial statements have been included. Our Company’s year-end is December 31.

 

Going Concern Considerations

 

The accompanying financial statements have been prepared in conformity with generally accepted accounting principles in the United States of America, which contemplate continuation of our Company as a going concern. We currently have no revenues, have incurred net losses, and have an accumulated deficit of $213,593 as of June 30, 2021. The continuation of our Company as a going concern is dependent upon our ability to raise equity or debt financing, and the attainment of profitable operations from any future business we may acquire. There are no assurances that we will be successful in obtaining sufficient capital to continue as a going concern. If our working capital needs are not met and we are unable to obtain adequate capital, we could be forced to cease operations.

 

These unaudited condensed consolidated financial statements and notes thereto should be read in conjunction with the Management’s Discussion and the audited financial statements and notes thereto included in the Annual Report on Form 10-K for the fiscal year ended December 31, 2020.

 

 

 

 8 

 

  

The accompanying financial statements do not include any adjustments that might be necessary if our Company is unable to continue as a going concern.

 

Use of Estimates

 

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

 

Intellectual Property 

We have patent and patent pending technologies with a focus on artificial intelligence (“AI”), machine learning with optimization and Smart Deployment algorithms. It involves anticipating demand for passengers and dispatching cars in advance – to reduce wait-time, increasing utilization of vehicles, and decrease cost. It includes new and efficient system for tracking and charging customers with preferred rates, supply and demand rates, and “specific” community engagement.

 

Patent expenses, consisting mainly of patent filing fees, have been capitalized and are shown as an asset on our balance sheet. We amortize our Patent asset over the remaining life of the Patent, which is approximately ten (10) years. 

Fair Value of Financial Instruments

 

Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants as of the measurement date. Applicable accounting guidance provides an established hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in valuing the asset or liability and are developed based on market data obtained from sources independent of our Company. Unobservable inputs are inputs that reflect our Company’s assumptions about the factors that market participants would use in valuing the asset or liability. There are three levels of inputs that may be used to measure fair value:

 

  Level 1 - Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.
  Level 2 - Other inputs that are directly or indirectly observable in the marketplace.
  Level 3 - Unobservable inputs which are supported by little or no market activity.

 

As previously noted, the fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.

  

Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of December 31, 2020 and 2019. The respective carrying value of certain on-balance-sheet financial instruments approximated their fair values. These financial instruments include accounts payable and accrued liabilities and related-party advances. Fair values for these items were assumed to approximate carrying values because of their short-term nature or their status of being payable on demand.

 

Long-lived Assets

 

We follow ASC 360-10-15-3, Impairment or Disposal of Long-lived Assets, which established a “primary asset” approach to determine the cash flow estimation period for a group of assets and liabilities that represents the unit of accounting for a long-lived asset to be held and used.  Long-lived assets to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable.  The carrying amount of a long-lived asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset.  Long-lived assets to be disposed of are reported at the lower of carrying amount or fair value less cost to sell.

 

 

 

 9 

 

 

Income Taxes

 

We account for income taxes in accordance with ASC 740 - Income Taxes, which requires us to provide a net deferred tax asset/liability equal to the expected future tax benefit/expense of temporary reporting differences between book and tax accounting methods and any available operating loss or tax credit carry forwards. Tax law and rate changes are reflected in income in the period such changes are enacted. We record a valuation allowance to reduce the deferred tax assets to the amount that is more likely than not to be realized. We include interest and penalties related to income taxes, including unrecognized tax benefits, within the provision for income taxes.

 

Net Loss Per Share

 

We compute net income (loss) per share in accordance with ASC 260, Earnings per Share. ASC 260 requires presentation of both basic and diluted earnings per share (“EPS”) on the face of the income statement. Basic EPS is computed by dividing net income (loss) available to common shareholders (numerator) by the weighted average number of shares outstanding (denominator) during the period. Diluted EPS gives effect to all dilutive potential common shares outstanding during the period using the treasury stock method and convertible preferred stock using the if-converted method. Diluted EPS excludes all potential dilutive shares if their effect is anti-dilutive. As of March 31, 2021 and 2020, we had no potentially dilutive shares.

 

New Accounting Pronouncements

 

We have reviewed all accounting pronouncements recently issued by the FASB (including its Emerging Issues Task Force), the AICPA, and the SEC and have determined that they are either not applicable or are not believed to have a material impact on our present or future financial statements.

 

3. Asset Purchase Agreement

 

As described in Note 1, we entered into the Agreement with TribalRides and its shareholders to purchase the patent and patent pending technologies owned by TribalRides in exchange for our Company’s issuance of 25,000,000 of our common shares. We have valued the shares issued in this transaction at the recorded value of the patent assets purchased which was $3,637 at the date of the transaction. See Note 5.

 

4. Equipment, net

 

During the six months ended June 30, 2021, we purchase a laptop computer. Depreciation is being calculated on a straight-line basis over a three-year period and was $17 for the six months ended June 30, 2021. There was no depreciation in the 2020 period.

 

5. Patents

 

We have patent and patent pending technologies with a focus on artificial intelligence (“AI”), machine learning with optimization and Smart Deployment algorithms. The technologies involve anticipating demand for passengers and dispatching cars in advance – to reduce wait-time, increasing utilization of vehicles, and decrease cost. It includes new and efficient system for tracking and charging customers with preferred rates, supply and demand rates, and “specific” community engagement

 

We currently own the following patents which have been issued and which are pending:

 

  · U.S. Patent 9,984,574, issued May 29, 2018, claims priority to provisional application filed on Jan. 21, 2014;
  · Pending U.S. application, published as US 2018/0366004 A1, claims priority to provisional application filed on Jan. 21, 2014; and
  · Pending U.S. application, unpublished, claims priority to three provisional applications filed on Nov. 4, 2019.

 

The software platform that underlies the patents have not created any revenue to date and there is no assurance that any revenue will be created from the patent technologies. As a result, we have recorded the patent asset at the cost of patent fees and other expenses incurred to produce and file the patents. During the six-month periods ended June 30, 2021 and 2020, we recorded patent amortization expense of $246 and $182, respectively.

 

 

 

 10 

 

 

6. Related Party Transactions

 

Due to Related Party

 

The amounts owed to related party totaling $58,301 and $23,857 as of June 30, 2021 and December 31, 2020, respectively, consist of advances from our CEO, Mr. Joe Grimes. Amounts due to related party bear no interest, are unsecured and are repayable on demand.

 

Asset Purchase Agreement

 

The CEO and majority stockholder of TribalRides, Mr. Joe Grimes, is also now the CEO of our Company. As a result of the Agreement described in Note 3, Mr. Grimes is now beneficially the majority owner of our Company.

 

7. Notes Payable

 

On May 29, 2018, we issued a note payable to a service provider in the principal amount of $40,000. The note bears interest at 5% per annum and was repayable six months from the date of issue. The note continues to be outstanding but there are no default provisions in the note. During the six-month periods ended June 30, 2021 and 2020, we recorded interest expense of $1,000 and $1,000, respectively, which amounts are included on the accompanying Balance Sheets in Accounts Payable and Accrued Liabilities.

 

On June 10, 2021, we issued a promissory note to a non-related third party in the principal amount of $5,000. The note, which is unsecured, bears interest at 20% per annum and is repayable six months from the date of issue. During the six months ended June 30, 2021, we recorded interest expense of $55 which is included on the accompanying Balance Sheets in Accounts Payable and Accrued Liabilities.

 

8. Capital Stock

 

Common Stock

 

We are authorized to issue 50,000,000 shares of our $0.0001 par value common stock and each holder is entitled to one (1) vote on all matters subject to a vote of stockholders.

 

As described in Note 3, during the three months ended March 31, 2020, we issued 25,000,000 shares of our common stock to TribalRides and its shareholders in accordance with the Agreement.

 

2020 Stock Incentive Plan

 

Effective June 20, 2020, our Board of Directors adopted the 2020 Stock Incentive Plan (the “Plan”) authorizing a total of 2,500,000 shares of our common stock for future issuances under the Plan. Under the Plan, the exercise price of a granted option shall not be less than 100% of the fair market value on the date of grant (110% of the fair market value in the case of a 10% stockholder). Additionally, no option may be exercisable more than ten (10) years after the date it is granted (no more than five (5) years in the case of a 10% stockholder).

 

Stock Options

 

On June 20, 2020, we granted options to purchase 100,000 of our common shares to each of Messrs. Grimes, Prasad, and Ritacco, all Officers and/or Directors of our Company. The options are exercisable at $0.01 per share, expire five (5) years from the date of grant, and vest ratably beginning December 20, 2021 over the term of the option.

 

 

 

 11 

 

 

The fair value of each stock option was estimated on the date of grant using the Black-Scholes option pricing model and resulted in a de minimis valuation. The assumptions used in determining the fair value of the stock options were as follows

 

Expected term in years     5 years  
Risk-free interest rate     0.33%  
Annual expected volatility     38.3%  
Dividend yield     0.00%  

 

Risk-free interest rate: We use the risk-free interest rate of a U.S. Treasury Bill with a similar term on the date of the option grant.

 

Volatility: We estimate the expected volatility of the stock price based on the corresponding volatility of our historical stock price.

 

Dividend yield: We use a 0% expected dividend yield as we have not paid dividends to date and do not anticipate declaring dividends in the near future.

 

Remaining term: The remaining term is based on the remaining contractual term of the stock options.

 

Activity related to stock options for 2021 is as follows:

 

 
   Shares   Weighted
Average
Exercise
Price
   Weighted
Average
Remaining
Contractual
Life in Years
   Aggregate
Intrinsic
Value
 
                 
Outstanding, December 31, 2020   300,000   $0.01           
Outstanding, June 30, 2021   300,000   $0.01           
Exercisable, June 30, 2021   0   $0.01    4.0   $0 

 

9. Subsequent Event

 

Effective September 23, 2021, we entered into a Debt Settlement Agreement (the “Debt Agreement”) with the holder of the $40,000 note payable described in Note 7. Under the Debt Agreement, the noteholder agreed to accept $5,000 in full settlement of all amounts owed under the note if the $5,000 is paid within 60 days of the execution of the Debt Agreement.

 

 

 

 12 

 

 

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations. 

 

This Management’s Discussion and Analysis of Financial Condition and Results of Operations contain certain forward-looking statements. Historical results may not indicate future performance. Our forward-looking statements reflect our current views about future events; are based on assumptions and are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those contemplated by these statements. Factors that may cause differences between actual results and those contemplated by forward-looking statements include, but are not limited to, those discussed herein. We undertake no obligation to publicly update or revise any forward-looking statements, including any changes that might result from any facts, events, or circumstances after the date hereof that may bear upon forward-looking statements. Furthermore, we cannot guarantee future results, events, levels of activity, performance, or achievements

 

Basis of Presentation

 

The accompanying financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission (“SEC”).

  

Forward-Looking Statements

 

Statements in this management’s discussion and analysis of financial condition and results of operations contain certain forward-looking statements. 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. Where in any forward-looking statements, if we express 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.

  

Factors that may cause differences between actual results and those contemplated by forward-looking statements and are not limited to the following:

 

  · the unprecedented impact of COVID-19 pandemic on our business, customers, employees, subcontractors, consultants, service providers, stockholders, investors and other stakeholders;
  · general market and economic conditions;
  · our ability to acquire customers;
  · our ability to meet the volume and service requirements of our customers;
  · industry consolidation, including acquisitions by us or our competitors;
  · success in developing new products;
  · timing of our new product introductions;
  · new product introductions by competitors;
  · the ability of competitors to more fully leverage low-cost geographies for manufacturing or distribution;
  · product pricing, including the impact of currency exchange rates;
  · effectiveness of sales and marketing resources and strategies;
  · adequate manufacturing capacity and supply of components and materials;
  · strategic relationships with suppliers;
  · product quality and performance;
  · protection of our products and brand by effective use of intellectual property laws;
  · the financial strength of our competitors;
  · the outcome of any future litigation or commercial dispute;
  · barriers to entry imposed by competitors with significant market power in new markets; and
  · government actions throughout the world.

 

You should not rely on forward-looking statements in this document. This management’s discussion 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 statements, which apply only as of the date of this document. Our actual results could differ materially from those anticipated in these forward-looking statements.

 

 

 

 13 

 

 

Critical Accounting Policies and Estimates

 

The following discussions are based upon our financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States.

 

Going Concern Considerations

 

The accompanying financial statements have been prepared in conformity with generally accepted accounting principles in the United States of America, which contemplate continuation of our Company as a going concern. We currently have no revenues, have incurred net losses, and have an accumulated deficit of $213,593 as of June 30, 2021. The continuation of our Company as a going concern is dependent upon our ability to raise equity or debt financing, and the attainment of profitable operations from any future business we may acquire. There are no assurances that we will be successful in obtaining sufficient capital to continue as a going concern. If our working capital needs are not met and we are unable to obtain adequate capital, we could be forced to cease operations.

 

Use of Estimates and Assumptions

 

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

 

Intellectual Property

 

We have patent and patent pending technologies with a focus on artificial intelligence (“AI”), machine learning with optimization and Smart Deployment algorithms. It involves anticipating demand for passengers and dispatching cars in advance – to reduce wait-time, increasing utilization of vehicles, and decrease cost. It includes new and efficient system for tracking and charging customers with preferred rates, supply and demand rates, and “specific” community engagement.

 

Patent expenses, consisting mainly of patent filing fees, have been capitalized and are shown as an asset on our balance sheet. We amortize our Patent asset over the remaining life of the Patent, which is approximately 10 years.

 

Long-lived Assets

 

We follow ASC 360-10-15-3, Impairment or Disposal of Long-lived Assets, which established a “primary asset” approach to determine the cash flow estimation period for a group of assets and liabilities that represents the unit of accounting for a long-lived asset to be held and used.  Long-lived assets to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The carrying amount of a long-lived asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset.  Long-lived assets to be disposed of are reported at the lower of carrying amount or fair value less cost to sell.

 

Common Stock Issued for Services

 

Our accounting policy for equity instruments issued to consultants and vendors in exchange for goods and services follows the provisions of Emerging Issues Task Force (“EITF”) 96-18, Accounting for Equity Instruments That are Issued to Other Than Employees for Acquiring, or in Conjunction with Selling, Goods or Services, codified into ASC 505 Equity. The measurement date for the fair value of the equity instruments issued is determined at the earlier of (i) the date at which a commitment for performance by the consultant or vendor is reached or (ii) the date at which the consultant or vendor's performance is complete. In the case of equity instruments issued to consultants, the fair value of the equity instrument is recognized over the term of the consulting agreement at various performance completion dates, and for unvested instruments, at each reporting date. Compensation expense, once recorded, may not be reversed.

 

 

 

 14 

 

 

Recently Issued Accounting Standards

 

The Company has implemented all new accounting pronouncements that are in effect and that may impact its financial statements and does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position and result of operations.

 

Trends and Uncertainties

 

Demand for our products is dependent on general economic conditions, which are cyclical in nature. Because a major portion of our activities are the receipt of revenues from our services and products, our business operations may be adversely affected by competitors and prolonged recessionary periods.

 

There are no other known trends, events or uncertainties that have, or are reasonably likely to have, a material impact on our short-term or long-term liquidity. Sources of liquidity will come from the sale of our products and services. There are no material commitments for capital expenditure at this time. There are no trends, events or uncertainties that have had or are reasonably expected to have a material impact on the net sales or revenues or income from continuing operations. There are no significant elements of income or loss that do not arise from the registrant’s continuing operations. There are no other known causes for any material changes from period to period in one or more-line items of our financial statements.

 

Impact of COVID-19

 

During the years 2020 and 2021, the effects of a new coronavirus (“COVID-19”) and related actions to attempt to control its spread began to impact our business. The impact of COVID-19 on our operating results for the three-months ended June 30, 2021 was limited, in all material respects, due to the government mandated numerous measures, including closures of businesses, limitations on movements of individuals and goods, and the imposition of other restrictive measures, in its efforts to mitigate the spread of COVID-19 within the country.

 

On March 11, 2020, the World Health Organization designated COVID-19 as a global pandemic. Governments around the world have mandated, and continue to introduce, orders to slow the transmission of the virus, including but not limited to shelter-in-place orders, quarantines, significant restrictions on travel, as well as work restrictions that prohibit many employees from going to work. Uncertainty with respect to the economic effects of the pandemic has introduced significant volatility in the financial markets.

 

Results of Operations for the Three Months Ended June 30, 2021 Compared to the Three Months Ended June 30, 2020

 

For both three months ended June 30, 2021 and 2020, we had no revenues.

 

Our operating expenses for the three months ended June 30, 2021 were $15,256 compared to $8,293 for the three months ended June 30, 2020. The increase in operating expenses in the 2021 period over the 2020 period was mainly the result of higher accounting fees.

 

Other expense for the three months ended June 30, 2021 consisted of interest expense of $555 versus $500 for the comparable period in 2020 on higher levels of debt.

 

Our net loss for the three months ended June 30, 2021 of $15,811 ($0.00 per share) compares to a net loss of $8,793 ($0.00 per share) in the previous period.

 

Results of Operations for the Six Months Ended June 30, 2021 Compared to the Six Months Ended June 30, 2020

 

For both six months ended June 30, 2021 and 2020, we had no revenues.

 

Our operating expenses for the six months ended June 30, 2021 were $33,785 compared to $14,801 for the six months ended June 30, 2020. Operating expenses in the 2021 period were higher than in 2020 for the following categories: financial consulting (up $4,520), legal (up $4,815), accounting (up$7,845) and filing fees (up $1,749).

 

 

 

 15 

 

 

Other expense for the six months ended June 30, 2021 consisted of interest expense of $1,055 versus $1,000 for the comparable period in 2020 on higher levels of debt.

 

Our net loss for the six months ended June 30, 2021 of $34,840 ($0.00 per share) compares to a net loss of $15,801 ($0.00 per share) in the previous period.

 

Liquidity and Capital Resources

 

We have previously raised capital through debt financing, advances from related parties and private placements of our common stock to meet operating needs. As of June 30, 2021, we have limited cash, and we will need to raise additional funds to execute our current plan of operation. We currently have no written commitment from anyone to contribute funds to our Company. If we are unable to raise sufficient funds to execute our plan of operation, we intend to scale back our operations commensurately with the funds available to us. If we are unable to obtain adequate capital, we could be forced to cease operations.

 

Balance Sheets

 

As of June 30, 2021, we had cash of $3,700 and total assets of $9,219 compared with no cash and total assets of $3,273 as of December 31, 2020. Our total liabilities increased at June 30, 2021 by $40,786 compared to December 31, 2021 due to increases in notes payable and related party advances.

 

During the six months ended June 30, 2020 we issued 25,000,000 shares of our common stock in connection with the Asset Purchase Agreement.

 

Cash Flows

 

During the six months ended June 30, 2021, we generated cash of $1,209 for operating activities compared with zero during the comparable period in 2020. During the six months ended June 30, 2021, we used cash of $2,509 in investing activities ($1,285 for patent related expenditures and $1,224 for equipment purchases) and generated $5,000 in financing activities from the issuance of a note payable. There were no cash flows from investing or financing activities in during the six months ended June 30, 2020.

 

Off-Balance Sheet Arrangements

 

We do not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future material effect on our consolidated financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity capital expenditures or capital resources.

 

Emerging Growth Company

 

We are an “emerging growth company,” as defined in the Jumpstart Our Business Startups Act of 2012, or the JOBS Act. Certain specified reduced reporting and other regulatory requirements that are available to public companies that are emerging growth companies include:

 

  1. an exemption from the auditor attestation requirement in the assessment of our internal controls over financial reporting required by Section 404 of the Sarbanes-Oxley Act of 2002;
  2. an exemption from the adoption of new or revised financial accounting standards until they would apply to private companies;
  3. an exemption from compliance with any new requirements adopted by the Public Company Accounting Oversight Board, or the PCAOB, requiring mandatory audit firm rotation or a supplement to the auditor’s report in which the auditor would be required to provide additional information about our audit and our financial statements; and
  4. reduced disclosure about our executive compensation arrangements.

 

We have elected to take advantage of the exemption from the adoption of new or revised financial accounting standards until they would apply to private companies. As a result of this election, our financial statements may not be comparable to public companies required to adopt these new requirements. 

 

 

 

 16 

 

 

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

 

As a smaller reporting company, we have elected not to provide the disclosure required by this item.

 

Item 4. Controls and Procedures.

 

Disclosure Controls and Procedures

 

The Company has established disclosure controls and procedures that are designed to ensure that information required to be disclosed in reports filed or submitted under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission and, as such, is accumulated and communicated to the Company’s Chief Executive Officer, Joseph Grimes, who serves as our principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure. Mr. Grimes, evaluated the effectiveness of the Company’s disclosure controls and procedures, as defined in Rule 13a-15(e) of the Exchange Act, as of June 30, 2021. Based on his evaluation, Mr. Grimes concluded that the Company’s disclosure controls and procedures were not effective as of June 30, 2021.

 

Changes in Internal Control Over Financial Reporting

 

There has been no change in the Company’s internal control over financial reporting, as defined in Rules 13a-15(f) of the Exchange Act, during the Company’s most recent fiscal quarter ended June 30, 2021, that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

 

 

 

 

 

 

 17 

 

 

PART II—OTHER INFORMATION

 

Item 5. Other Information

 

On June 10, 2021, we issued a promissory note to Step Well Advisory Ltd in the principal amount of $5,000. The note, which is unsecured, bears interest at 20% per annum and is repayable six months from the date of issue.

 

Item 6. Exhibits.

 

SEC Ref. No. Title of Document
10.1* Promissory Note dated June 10, 2021 Issued to Step Well Advisory Ltd.
31.1* Rule 13a-14(a) Certification by Principal Executive and Financial Officer
32.1** Section 1350 Certification of Principal Executive and Financial Officer
101.INS*** Inline XBRL Instance Document
101.SCH*** Inline XBRL Taxonomy Extension Schema Document
101.CAL*** Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF*** Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB*** Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE*** Inline XBRL Taxonomy Extension Presentation Linkbase Document
104***

Cover Page Interactive Data File (formatted in IXBRL, and included in exhibit 101)

 

__________________

*Filed with this Report.

**Furnished with this Report.

***To be filed by amendment.

 

 

 18 

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

  Tribal Rides International Corp.
     
     
Date: September 28, 2021 By /s/ Joseph Grimes
    Joseph Grimes, Chief Executive Officer
    (Principal Executive Officer and Principal
    Financial Officer)

 

 

 

 

 

 

 

 

 

 

 19 

 

Exhibit 31.1

 

CERTIFICATION

 

I, Joseph Grimes, certify that:

 

  1. I have reviewed this Quarterly Report on Form 10-Q of Tribal Rides International Corp.

 

  2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

  3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

  4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 

  (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

  (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

  (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

  (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

 

  5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

 

  (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

 

  (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

 

Date: September 28, 2021 /s/ Joseph Grimes
 

Joseph Grimes, Chief Executive Officer

(Principal Executive Officer and Principal Financial Officer)

 

Exhibit 32.1

 

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

 

In connection with the Quarterly Report of Tribal Rides International Corp. (the "Company") on Form 10-Q for the period ended June 30, 2021, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Joseph Grimes, Chief Executive Officer (Principal Executive Officer and Principal Financial Officer) of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

 

  (1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
     
  (2) The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.

 

 

/s/ Joseph Grimes

Joseph Grimes, Chief Executive Officer

(Principal Executive Officer and Principal Financial Officer)

 

September 28, 2021

 



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