NEUTRA CORP. MANAGEMENT REPORT AND ANALYSIS OF FINANCIAL POSITION AND OPERATING RESULTS (Form 10-Q)

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The following discussion and analysis of our financial condition and operating plan should be read in conjunction with our financial statements and related notes elsewhere in this document. This discussion and analysis contains forward-looking statements, including information about possible or expected results of our financial conditions, operations, plans, objectives and performance that involve risks, uncertainties and assumptions. Actual results may differ materially from those anticipated in these forward-looking statements. For example, when we indicate that we plan to increase our product sales and possibly establish additional licensing relationships, these are forward-looking statements. The words expect, anticipate, estimate or similar expressions are also used to indicate forward-looking statements.



Background of our Company


Neutra Corp. has been incorporated into Florida on January 11, 2011. On October 5, 2015we have reincorporated Florida at Nevada. On August 16, 2019we have reincorporated Nevada at Wyoming. The reincorporation has been approved by our board of directors and by the holders of the majority of the voting rights for our common shares. There was no change in shareholding following the reincorporation. Our authorized actions in the Wyoming company are an unlimited number of common shares and 20,000,000 preferred shares.

We have established a year-end of January 31.

As the global cannabis market grows exponentially, it constantly needs better technologies and better products to be more efficient in how it grows, what it grows, and how it consumes cannabis and its related products. From lighting to dosing devices, from pesticide substitutes to plant enhancers, Neutra Corp. constantly combs the industry for the latest to test, prove and bring to market.

We have generated limited revenue to date and our activities have been primarily limited to developing our business plan and product research and development. We will not have the capital to fully develop or execute our business plan until we are able to obtain additional financing. There can be no assurance that such financing will be available on suitable terms. We need to raise additional funds in order to implement our business plan. Our current cash flow is insufficient to market our products or fully develop our commercial strategy. If we are unable to raise adequate additional funds or if such funds are not available on terms acceptable to us, we will not be able to execute our business plan and we may cease operations.



Plan of Operations


We believe that we do not have sufficient funds to fully execute our business plan for the next twelve months unless we obtain additional funds. However, if we do not raise this capital, we will allocate our funding to first ensure that all state, federal and SECOND requirements are met.

From April 30, 2022we had cash in hand $15,188.

We intend to seek capital through public or private financing, as well as debt and other sources to fund our business activities. We cannot guarantee that additional funding will be available on favorable terms, if at all. If adequate funds are not available, our ability to continue our operations could be significantly impaired.



Critical Accounting Policies


We prepare our consolidated financial statements in accordance with GAAP, which requires management to make certain estimates and apply judgments. We base our estimates and judgments on historical experience, current trends and other factors that management believes are important when preparing the consolidated financial statements. We regularly review our accounting policies and how they are applied and disclosed in our consolidated financial statements.

Although we believe that historical experience, current trends and other factors considered support the preparation of our consolidated financial statements in accordance with GAAP, actual results could differ from our estimates and those differences could be material.

For a complete description of our significant accounting policies, please refer to Section 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our annual report for the year ended January 31, 2022 on Form 10-K.




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Results of Operations


Three months completed April 30, 2022 compared to the three months ended April 30, 2021

Revenue and Cost of Goods Sold

In the three months ended April 30, 2022 and 2021, we recognized revenue of
$9,662 and the cost of goods sold of $4,538 related to sales of CBD products. In the three months ended April 30, 2021we recorded a turnover of $11,553
and the cost of goods sold of $10,261.



Depreciation


We have recognized the amortization of $19,726 for the three months ended April 30, 2022
compared to $18,212 for the three months ended April 30, 2021related to new equipment brought into service during the previous financial year.

General and administrative expenses

We recorded general and administrative expenses of $75,501 and $102,869 for the three months ended April 30, 2022 and 2021, respectively. The decrease is mainly related to the decrease in consulting fees and marketing expenses.



Interest Expense


Interest charges were $15,434 and $14,613 for the three months ended April 30, 2022 and 2021, respectively, convertible notes payable outstanding.



Net Loss


We suffered a net loss of $107,196 for three months ended April 30, 2022 compared to $137,316 for the comparable period of 2021.

Cash and capital resources

To April 30, 2022we had cash in hand $15,188. We have a negative working capital of $1,174,530. Net cash used in operating activities for the three months ended April 30, 2022 has been $92,668. Cash on hand is sufficient to fund our operations for less than six months. We do not expect to achieve positive cash flow from operations in the near future. We will need additional cash to implement our business plan. There is no guarantee that we will be able to obtain funds when we need them or that funds will be available on terms acceptable to us. We have no significant commitments for capital expenditures in April 30, 2022.



Additional Financing


Additional funding is needed to continue operations. Although we are actively seeking available capital, we have no current arrangements for additional external sources of funding and cannot guarantee that such funding will be available.

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 effect on our financial condition, changes in our financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or our capital resources that is material to investors.

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