Daniels Corporate Advisory Co Inc (DCAC)

[tutankhamuns]

During the three months ended August 31, 2019, the Company did not issue any shares of unregistered common stock.

How can a company sell shares...without issuing shares?

Primarily driven by PayLess, the Company produced $2,832,957 in revenue and $140,065 in positive cash flow from operations during the nine months ended August 31, 2019.

How does a company lose money if they have positive cash flow FROM OPERATIONS? That’s all that matters. They’re paying bills using money that they made from conducting business.

We can take it a step further and shed light on exactly where the money is going...

During the nine months ended August 31, 2019, net cash provided by operating activities was $140,065 compared to net cash used of $45,411 during the nine months ended August 31, 2018. The increase in net cash provided by operating activities is primarily attributable to the results of operations of our newly formed PayLess Truckers, Inc. subsidiary. It recorded sales of $2,832,957 and realized a gross margin of $326,211 during the nine-month period.

Net cash used in investing activities was $209,722 during the nine months ended August 31, 2019, as compared to $0 during the nine months ended August 31, 2018. The increase is directly attributable to the purchase of trucks to be utilized in our credit rebuilding business line.

Net cash provided by financing activities was $112,500 during the nine months ended August 31, 2019, as compared to net cash provided of $106,000 during the nine months ended August 31, 2018. The increase in net cash provided by financing activities is directly related to the issuance of $115,000 in convertible debt, offset in part by a repayment of note principal for $2,500.

Do the math. Is it a coincidence that the net cash used in investing/financing equates to the company’s gross margins? Hmm...

So, with respect to their investing efforts, they wouldn’t even need convertible debt if they weren’t interested in expanding the truck rental segment. That’s an extra $200K+ that they would’ve been sitting on right now, some of which could’ve been used to offset the net loss. The notes are clearly a short-term sacrifice while conventional funding is arranged, especially when the six trucks that are currently on lease generate over $250K in annual revenue.

Cheers.

$DCAC