REAC : MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. (form 10-K)

Cautionary Notice Regarding Forward Looking Statements

This part of this Form 10-Ok contains quite a lot of forward-looking statements
that mirror our present views with respect to future occasions and monetary
efficiency. Forward-looking statements are sometimes recognized by phrases like
imagine, anticipate, estimate, anticipate, intend, undertaking and comparable expressions,
or phrases which, by their nature, confer with future occasions. You shouldn’t place
undue certainty on these forward-looking statements. These forward-looking
statements are topic to sure dangers and uncertainties that would trigger
precise outcomes to vary materially from our predictions.

Readers shouldn’t place undue reliance on these forward-looking statements,
that are primarily based on administration’s present expectations and projections about
future occasions, should not ensures of future efficiency, are topic to dangers,
uncertainties and assumptions (together with these described under), and apply solely
as of the date of this submitting. Our precise outcomes, efficiency or achievements
may differ materially from the outcomes expressed in, or implied by, these
forward-looking statements. Factors which may trigger or contribute to such
variations embrace, however should not restricted to, the dangers to be mentioned in our
Annual Report on kind 10-Ok and within the press releases and different communications to
shareholders issued by us every now and then which try to advise
events of the dangers and components which can have an effect on our enterprise. We undertake no
obligation to publicly replace or revise any forward-looking statements, whether or not
because of new info, future occasions, or in any other case.


Our Operating Strategy


Our web site permits actual property professionals and shoppers to work together by means of
the Internet as a enterprise medium. Our working technique is to function actual
property brokers’ web sites on the www.realestatecontacts.com portal web site within the
areas that they service and work enabling potential residence consumers to view actual
property listings and houses which are on the market. This format could be known as a lead
technology program for actual property professionals which are on the
RealEstateContacts.com portal web site.

Our enterprise technique is an ease of use method which permits the buyer to
view listings of houses from our web site and likewise of their native actual property
workplace or agent.

Our focus is driving excessive volumes of visitors to our web site and our advertisers
profile pages placing the buyer with essentially the most related and desired
skilled. Many distinctive guests go to our web site to view actual property
listings and houses on the market. We accomplish this by means of extremely targeted and
well-designed search engine marketing methods that enable our advertisers to obtain larger
quantity of publicity with out spending big sources. Our methodology and useful resource
expenditures are invaluable instruments to our advertisers. We do the advertising and marketing and
our advertisers get the leads.

Our actual property search portal web site will even embrace native actual property
service suppliers that need extra visitors and publicity to their enterprise web site
for potential new purchasers.

We imagine the driving of web visitors is the important thing to any on-line advertising and marketing
firm. We intend to construct our promoting marketing campaign round all web associated
advertising and marketing ideas, resembling SEO, pay per clicks
promoting, banner promoting, electronic mail advertising and marketing, and linking as much as different actual
property portals and directories.

Our purpose is to attach actual property professionals with shoppers who’re
fascinated by shopping for or promoting a house. We imagine that when a buyer does
analysis and is aware of which home she or he is fascinated by, the result’s a extra
efficient and time-efficient transaction for each purchaser and vendor.



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Plan of Operations


Our plan of operation is to function a search engine portal web site for actual
property.

Our actual property search web site permits actual property professionals and shoppers to
work together by means of the web as a enterprise medium. The Company’s working
technique is to function actual property skilled’s web sites and profiles on the
RealEstateContacts.com portal web site within the areas that they service and work
enabling potential residence consumers to view actual property listings and houses which are
on the market and featured on the true property professionals’ web site. This format is
known as a lead technology program for actual property professionals which are on the
RealEstateContacts.com portal web site.

Our enterprise technique is an ease of use method which permits the buyer to
view listings of houses from of their native actual property workplace, dealer or agent.
This service is offered from our actual property search web site:
www.realestatecontacts.com. In addition, our actual property search web site will
function a choose few per metropolis. For this purpose, we imagine our idea can have
a excessive degree of curiosity from any actual property skilled. We imagine this
method might be engaging to actual property professionals in every locale.

The RealEstateContacts.com portal web site will even function native actual property
service suppliers resembling native or nationwide mortgage lenders and mortgage
brokers. By that includes native mortgage brokers our web site permits the buyer to
have entry to any monetary questions and might obtain all the knowledge they
want shortly of their geographical space.

Our purpose is to attach actual property professionals with shoppers who’re
fascinated by shopping for or promoting a house.

We anticipate producing revenues from promoting gross sales from actual property
professionals on our present web site.

We plan to develop revenues within the subsequent 12 months by endeavor the next
steps:


    ·   Devote larger sources to advertising and marketing and promoting our companies resembling
        growing and making a extra productive promoting gross sales division
        inside our firm by the hiring of promoting gross sales account executives.
    ·   Focus to broaden our community of advertisers and actual property professionals
        by growing our on-line presence to incorporate varied advertising and marketing channels
        resembling the foremost search engines like google and yahoo, Google, Yahoo and Bing.
    ·   Expand our firm's public relations by creating extra model consciousness on
        the web. An instance could be to deal with different social media web sites
        resembling Facebook, Twitter, and LinkedIn.
    ·   Develop different advertising and marketing applications to effectively improve our model
        consciousness resembling electronic mail campaigns, newsletters, linking our web site to
        different actual property enterprise web sites, actual property portals and directories.
    ·   We intend to proceed, keep and aggressively pursue to construct our
        promoting marketing campaign round all web associated advertising and marketing ideas, such
        as SEO, ppc promoting, banner
        promoting and social media networks to assist handle and geographically
        goal shopper visitors and lead quantity.
    ·   Focus on driving extra web visitors and distinctive guests to our web sites
        through the use of these search engine advertising and marketing strategies.
    ·   We plan to extend our on-line Search Engine Marketing to create extra
        distinctive customers. Measuring distinctive customers is essential to us as a result of our
        promoting revenues rely partly on our means to allow our shoppers
        to attach with actual property professionals. We outline a singular person as a
        person who visits our web site no less than as soon as throughout a calendar month, as
        measured by our analytical instruments.
    ·   The variety of actual property professionals (advertisers) on our web site is an
        essential driver of income progress.




Limited Operating History



We have generated a restricted monetary historical past and haven’t beforehand
demonstrated that we will broaden our enterprise by means of elevated
funding in advertising and marketing actions. We can not assure that the growth
efforts described on this Registration Statement might be profitable. The
enterprise is topic to dangers inherent in rising an enterprise, together with
restricted capital sources and attainable rejection of our enterprise mannequin and/or
gross sales strategies.

Future financing is probably not accessible to us on acceptable phrases. If debt
financing shouldn’t be accessible or not accessible on passable phrases, we could also be
unable to proceed increasing our operations. Equity financing will lead to a
dilution to current shareholders.

Results of Operations


For the years ended December 31, 2019 and 2018.


Revenues


For the years ended December 31, 2019 and 2018, we generated no revenues.



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Operating Expenses


Operating bills within the quantity of $4,109,730 and $509,358 had been incurred for
the years ended December 31, 2019 and 2018, respectively. The improve was due
to elevated stock-based compensation and normal and administrative bills.
We anticipate that our skilled charges ($50,454 in 2019 vs $53,504 in 2018)
will stay vital as we keep compliance with our public reporting
necessities.


Net Loss


The Company acknowledged internet losses of $4,237,188 and $702,564 for the years ended
December 31, 2019 and 2018, respectively. The elevated loss is essentially resulting from
stock-based compensation issued to the Company’s CEO. At this time, regular prices
of public submitting will proceed and it’s not recognized when vital revenues
will happen to off-set these bills.

Liquidity and Capital Resources

The Company is at the moment financing its operations primarily by means of loans,
fairness gross sales and advances from shareholders. These advances are being made to
complement any money generated by the working income. We imagine we will
at the moment fulfill our money necessities for the following twelve months with our
present anticipated improve in income, and the anticipated capital to be raised in
non-public placement and gross sales of our frequent inventory. Additionally, we’ll start to
use our frequent inventory as fee for sure obligations and to safe work to be
carried out. Management plans to proceed to depend on advances from shareholders
till it has generated income by means of yearly promoting subscriptions.

The Company has unfavourable working capital, within the quantity of $1,742,797 as of
December 31, 2019 and has internet money utilized by operations of $11,030. During the
yr ended December 31, 2019, the Company obtained $10,000 in proceeds from the
issuance of frequent inventory. During the yr ended December 31, 2018, the Company
obtained $65,000 from the issuance of convertible debt.

At December 31, 2019 the Company’s money steadiness was $132. The Company
anticipates producing income, which is able to partially mitigate money movement
deficiencies; nevertheless, with out income these days, we’re unable to
cowl our money necessities with out relying upon loans and advances. In
consideration of the potential shortfall in ample sources, administration has
disclosed its substantial doubt about its means to proceed as a going concern
and our auditor has additionally expressed the identical of their auditors’ report.

We do imagine that we’ll have sufficient money to assist our each day operations, at
decreased ranges of improvement, past the following 12 months whereas we try
to broaden operations and produce revenues. Although we imagine we’ve ample
funds to keep up our present operations for the close to time period, we don’t imagine
that we’ve the required funding to broaden our product providing (and different
attainable different service choices). We estimate the Company wants an
further $200,000 to totally implement its enterprise plans over the following twelve
months. In addition, we anticipate we’ll want an extra minimal of
$120,000 to cowl operational and administrative bills for the following twelve
months. The majority shareholder has dedicated to cowl any money shortfalls of
the Company, though there isn’t a written settlement or assure. If we’re
unable to fulfill our money necessities, we could also be unable to proceed with our
plan of operations.

Future financing for our operations is probably not accessible to us on acceptable
phrases. To elevate fairness would require the sale of inventory and the debt financing
would require institutional or non-public lenders. We shouldn’t have any institutional
or non-public lending sources recognized. If debt financing shouldn’t be accessible or not
accessible on passable phrases, we could also be unable to proceed increasing our
operations. Equity financing will lead to a dilution to current shareholders.

The foregoing represents our greatest estimate of our money wants primarily based on present
planning and enterprise circumstances. In the occasion we’re not profitable in reaching
our preliminary income targets, further funds could also be required, and we is probably not
capable of proceed with our marketing strategy for the event and advertising and marketing of our
core companies. Should this happen, we’ll droop or stop operations.

We anticipate that relying on market circumstances and our plan of operations, we
could incur working losses within the foreseeable future. Therefore, there may be
substantial doubt about our means to proceed as a going concern.



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Management Consideration of Alternative Business Strategies

In order to proceed to guard and improve shareholder worth administration
believes that it could, every now and then, contemplate different administration
methods to create worth for the corporate or further revenues. Strategies to
be reviewed could embrace acquisitions; roll-ups; strategic alliances; joint
ventures on massive tasks; issuing frequent inventory as compensation in lieu of
money; and/or mergers.

Management will solely contemplate these choices the place it believes the end result would
be to extend shareholder worth whereas persevering with the viability of the corporate.
At the present time, there have been no deliberate commitments to any unbiased
concerns talked about above.


Subsequent Events


On January 7, 2020, 100,000 shares of the Company’s frequent inventory had been issued to
its President and Chief Executive Officer pursuant to the Plan of Share Exchange
Agreement initially entered into on December 27, 2019 with Florida Beauty
Express, Inc.
, Florida Beauty Flora, Inc., Floral Logistics of Miami, Inc.,
Floral Logistics of California, Inc., and Tempest Transportation Inc.

On January 13, 2020, we entered into an Amended Agreement and Plan of Share
Exchange Agreement by and Amongst, REAC Group, Inc. and Florida Beauty Express,
Inc.
, Florida Beauty Flora, Inc., Floral Logistics of Miami, Inc., Floral
Logistics of California, Inc.
, Tempest Transportation Inc. (the “Companies”).
The Agreement is for the alternate of 100% of the excellent shares of the
Companies in alternate for 15,015,002 shares of REAC Common Stock and 500,000
shares of REAC Series A Preferred Stock. The Agreement additionally states that the Mr. Robert DeAngelis will return to the REAC Treasury the entire shares that he
at the moment controls, in return for $350,000, to be paid as follows: $100,000
shall be paid in money inside three (3) days of closing by wired funds to Robert
DeAngelis
. The remaining $150,000 might be payable in $75,000 installments for
the primary two quarters after closing (March 31, 2020 and June 30, 2020
respectively) and Mr. DeAngelis will even obtain 100,000 shares of frequent
inventory, that might be valued at $1.00 per share, respectively. As a part of the
Agreement, Mr. Robert DeAngelis will even resign and appoint new officers and
administrators as to be chosen by the Companies.

On February 3, 2020, the Company entered right into a Senior Convertible Promissory
Note within the quantity of $277,750 and the Company licensed the disbursement of
the proceeds to Florida Beauty Flora, Inc. The Note bears curiosity at a price of
12% and matures one yr from the acquisition date. The Note is convertible into
shares of the Company’s frequent inventory at a conversion worth equal to 50%
multiplied by the bottom buying and selling worth through the earlier twenty-five (25)
days. At any time through the interval starting on the Issue Date and ending on
the final Trading Day instantly previous the Maturity Date, the Borrower shall
have the precise, exercisable on not lower than three (3) Trading Days prior
written discover to the Holder of the Note and topic to the Holder’s written
consent on the time of such prepayment, to prepay the excellent Note
(principal and accrued curiosity), in full by making a fee to the Holder of
an quantity in money equal to 150%, multiplied by the sum of the then excellent
principal quantity of this Note, plus accrued and unpaid curiosity on the unpaid
principal quantity of the Note, plus Default Interest, if any.

On February 25, 2020, the Company issued 1,000,000 shares of frequent inventory to its
President and Chief Executive Officer as a efficiency bonus for 2020. The
shares had been valued on the quoted market worth on the date of issuance.

On April 13, 2020, we entered right into a second Amended Agreement and Plan of Share
Exchange Agreement that was initially entered into on December 26, 2019 by and
Amongst, REAC Group, Inc. and Florida Beauty Express, Inc., Florida Beauty
Flora, Inc.
, Floral Logistics of Miami, Inc., Floral Logistics of California,
Inc.
, Tempest Transportation Inc. (the “Companies”) and Companies shareholders.
The Agreement is for the alternate of 100% of the excellent shares of the
Companies in alternate for 15,015,002 shares of REAC Common Stock and 500,000
shares of REAC Series A Preferred Stock. The Conditions to the Agreement have
been glad and totally closed, and the Companies at the moment are wholly-owned
subsidiaries of REAC. The Agreement additionally states that Mr. Robert DeAngelis will
return to the REAC Treasury the entire shares that he at the moment controls, in
return for $350,000, to be paid as follows: $100,000 shall be paid in money
inside three (3) days of closing by wired funds to Robert DeAngelis. The
remaining $150,000 might be payable in $75,000 installments for the primary two
quarters after closing (April 30, 2020 (of which $12,000 has been paid) and June
30, 2020
respectively) and Mr. DeAngelis will even obtain 100,000 shares of
frequent inventory, that might be valued at $1.00 per share, respectively. As a part of
the Agreement, Mr. Robert DeAngelis will even resign and appoint new officers
and administrators as to be chosen by the Companies. The Company plans to deliver Mr.
DeAngelis
again as a marketing consultant and / or an advisor, however no agreements have been
made to take action, presently.



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The 15,015,002 shares of Common Stock and 500,000 shares of Preferred Stock will
be distributed as described under:


                                  Common Stock


Shares to Issue Shareholder

   1,876,875          Efrat Afek
   1,876,875         Ralph Milman
   3,753,751          Ronan Koubi
   3,003,000          The Q Trust
   2,552,551         Ronald Minsky
   1,951,950    The Apollo Family Trust




                            Series A Preferred Stock



Shares to Issue       Shareholder
    62,500           Ralph Milman
    62,500            Efrat Afek
    125,000           Ronan Koubi
    105,000           The Q Trust
    80,000           Ronald Minsky
    65,000      The Apollo Family Trust



The Agreement could also be terminated, and the Acquisition contemplated herein could also be
deserted at any time previous to the Effective Time, whether or not earlier than or after
stockholder approval thereof by both Acquiror or the Companies. The
consummation of the transactions contemplated by this Agreement (the “Closing”)
shall happen on such date as could also be moderately required to accommodate a
satisfaction of the circumstances precedent to Closing, however in no occasion later than
April 13, 2020 with out consent of the events.

On April 16, 2020, the Company issued 400,000 shares of frequent inventory to its
President and Chief Executive Officer pursuant to the phrases of his employment
settlement. The shares had been issued as a efficiency bonus for 2020 and had been
valued on the quoted market worth on the date of issuance.

On April 23, 2020, the Company issued 2,000,000 shares of frequent inventory to its
President and Chief Executive Officer pursuant to the phrases of his employment
settlement. The shares had been issued as a efficiency bonus for 2020 and had been
valued on the quoted market worth on the date of issuance.

Effective June 22, 2020, Robert DeAngelis resigned from his place as
President and Chief Executive Officer and as a member of the board of administrators
of REAC Group, Inc. Ronen Koubi might be appointed the brand new CEO. Ronen Koubi is
the President and Director of Florida Beauty Flora, Inc.

Effective July 29, 2020, the Company entered right into a securities buy
settlement with Auctus Fund, LLC, a Delaware restricted legal responsibility firm. The SPA
offers for the acquisition by Auctus of a convertible promissory observe within the
principal quantity of $575,000; together with 100% warrant protection with full
anti-dilution rights and buyback choice. The Company licensed the disbursement
of the proceeds of this Note to Florida Beauty Flora, Inc.. The Promissory Note
matures on July 29, 2021 and bears curiosity at a price of 12% each year.

Effective October 12, 2020, one of many Company’s convertible promissory notes
dated March 13, 2017, with the unique principal quantity of $230,000, was
assigned to a brand new third get together. All rights, title, and curiosity of the Note had been
assigned with out recourse and with out representations or warranties of any variety.

Common Shares issued for Cash

In May 2019, the Company issued 20,000 frequent shares to a personal investor in
alternate for $10,000, or $0.50 per share.

Common Shares issued as Compensation

On February 14, 2020, the Company issued 500,000 shares of frequent inventory to its
President and Chief Executive Officer as a efficiency bonus for the yr ending
December 31, 2019. The shares had been valued at $1.65, the quoted market worth on
the date of issuance and the Company has recorded frequent inventory payable as of
December 31, 2019 for a worth of $825,000.



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In March 2019, the Company issued 15,000,000 shares of frequent inventory to its
President and Chief Executive Officer pursuant to the phrases of his employment
settlement. The shares had been issued for functions of sustaining voting management of
the Company and had been valued at $0.50, the quoted market worth on the date of
issuance, or $3,000,000.

Common Shares issued for Repayment of Notes

In December 2019, the Company accepted the issuance of 726,100 shares of frequent
inventory in satisfaction of $4,608 in accrued curiosity and $500 in conversion charges
on a convertible observe payable. As of December 31, 2019, the shares weren’t but
issued by the Company’s switch agent; subsequently the Company has recorded
frequent inventory payable within the quantity of $5,108. The Company will report the
issuances on the contract worth, on the date of alternate, off-setting accrued
curiosity.

In August 2019, the Company issued 30,000 shares of frequent inventory, for a worth of
$1,050 in satisfaction of $550 in principal and $500 in conversion charges on a
convertible observe payable. The Company recorded the issuances on the contract
worth, on the date of alternate, off-setting the notes payable.

In January 2019, the Company issued 2,500 shares of frequent inventory, for a worth of
$2,000 in satisfaction of $1,500 in curiosity and $500 of conversion charges on a
convertible observe payable. The Company recorded the issuances on the contract
worth, on the date of alternate, off-setting accrued curiosity.

In January 2019, the Company issued 2,400 shares of frequent inventory, for a worth of
$1,920 in satisfaction of $1,420 in principal and $500 of conversion charges on a
convertible observe payable. The Company recorded the issuances on the contract
worth, on the date of alternate, off-setting accrued curiosity.

In August 2018, the Company issued 2,393 shares of frequent inventory in connection
with a Securities Purchase Agreement and a Secured Convertible Promissory Note
that granted the investor a Warrant to buy shares of the Company’s frequent
inventory. The shares had been valued at $3,350, or $1.40 per share.

In June 2018, the Company issued 1,800 shares of frequent inventory, for a worth of
$2,640 in satisfaction of $2,140 in curiosity and $500 of conversion charges on a
convertible observe payable. The Company recorded the issuances on the contract
worth, on the date of alternate, off-setting the notes payable and accrued
curiosity.

In June 2018, the Company issued 2,195 shares of frequent inventory in reference to
a Securities Purchase Agreement and a Secured Convertible Promissory Note that
granted the investor a Warrant to buy shares of the Company’s frequent inventory.
The shares had been valued at $3,073, or $1.40 per share.

During the yr ended December 31, 2018, the Company issued 6,032 shares of
frequent inventory, in a cashless train, for an mixture worth of $9,456 pursuant
to a Warrant Agreement related to a convertible observe payable.

In May 2018, the Company issued 1,522 shares of frequent inventory, for a worth of
$2,640 in satisfaction of $2,140 in curiosity and $500 of conversion charges on a
convertible observe payable. The Company recorded the issuances on the contract
worth, on the date of alternate, off-setting the notes payable and accrued
curiosity.

In May 2018, the Company issued 1,523 shares of frequent inventory, for a worth of
$2,640 in satisfaction of $2,140 in curiosity and $500 of conversion charges on a
convertible observe payable. The Company recorded the issuances on the contract
worth, on the date of alternate, off-setting the notes payable and accrued
curiosity.

In May 2018, the Company issued 1,749 shares of frequent inventory, for a worth of
$2,640 in satisfaction of $2,140 in curiosity and $500 of conversion charges on a
convertible observe payable. The Company recorded the issuances on the contract
worth, on the date of alternate, off-setting the notes payable and accrued
curiosity.

In May 2018, the Company issued 1,908 shares of frequent inventory, for a worth of
$2,640 in satisfaction of $2,140 in curiosity and $500 of conversion charges on a
convertible observe payable. The Company recorded the issuances on the contract
worth, on the date of alternate, off-setting the notes payable and accrued
curiosity.

In May 2018, the Company issued 2,003 shares of frequent inventory, for a worth of
$2,640 in satisfaction of $2,140 in curiosity and $500 of conversion charges on a
convertible observe payable. The Company recorded the issuances on the contract
worth, on the date of alternate, off-setting the notes payable and accrued
curiosity.



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In May 2018, the Company issued 1,329 shares of frequent inventory, for a worth of
$2,640 in satisfaction of $2,140 in curiosity and $500 of conversion charges on a
convertible observe payable. The Company recorded the issuances on the contract
worth, on the date of alternate, off-setting the notes payable and accrued
curiosity.

In May 2018, the Company issued 550 shares of frequent inventory, for a worth of
$2,640 in satisfaction of $2,140 in curiosity and $500 of conversion charges on a
convertible observe payable. The Company recorded the issuances on the contract
worth, on the date of alternate, off-setting the notes payable and accrued
curiosity.

In May 2018, the Company issued 1,444 shares of frequent inventory in reference to
a Securities Purchase Agreement and a Secured Convertible Promissory Note that
granted the investor a Warrant to buy shares of the Company’s frequent inventory.
The shares had been valued at $3,033, or $2.10 per share.

In May 2018, the Company issued 1,500 shares of frequent inventory, for a worth of
$2,640 in satisfaction of $2,140 in curiosity and $500 of conversion charges on a
convertible observe payable. The Company recorded the issuances on the contract
worth, on the date of alternate, off-setting the notes payable and accrued
curiosity.

In April 2018, the Company issued 1,261 shares of frequent inventory, for a worth of
$2,640 in satisfaction of $2,140 in curiosity and $500 of conversion charges on a
convertible observe payable. The Company recorded the issuances on the contract
worth, on the date of alternate, off-setting the notes payable and accrued
curiosity.

In April 2018, the Company issued 1,259 shares of frequent inventory, for a worth of
$2,640 in satisfaction of $2,140 in curiosity and $500 of conversion charges on a
convertible observe payable. The Company recorded the issuances on the contract
worth, on the date of alternate, off-setting the notes payable and accrued
curiosity.

In April 2018, the Company issued 1,261 shares of frequent inventory, for a worth of
$2,640 in satisfaction of $2,140 in curiosity and $500 of conversion charges on a
convertible observe payable. The Company recorded the issuances on the contract
worth, on the date of alternate, off-setting the notes payable and accrued
curiosity.

In April 2018, the Company issued 1,449 shares of frequent inventory, for a worth of
$2,640 in satisfaction of $2,140 in curiosity and $500 of conversion charges on a
convertible observe payable. The Company recorded the issuances on the contract
worth, on the date of alternate, off-setting the notes payable and accrued
curiosity.

In March 2018, the Company issued 1,100 shares of frequent inventory, for a worth of
$2,640 in satisfaction of $2,140 in curiosity and $500 of conversion charges on a
convertible observe payable. The Company recorded the issuances on the contract
worth, on the date of alternate, off-setting the notes payable and accrued
curiosity.

In February 2018, the Company issued 1,989 shares of frequent inventory, for a worth
of $17,500 in satisfaction of $14,507 in principal and $2,993 in curiosity on a
convertible observe payable. The Company recorded the issuances on the contract
worth, on the date of alternate, off-setting the notes payable and accrued
curiosity.

In February 2018, the Company issued 1,125 shares of frequent inventory, for a worth
of $11,250 in satisfaction of $10,696 in principal and $554 in curiosity on a
convertible observe payable. The Company recorded the issuances on the contract
worth, on the date of alternate, off-setting the notes payable and accrued
curiosity.

In February 2018, the Company issued 1,000 shares of frequent inventory, for a worth
of $4,000 in satisfaction of $1,826 in principal, $1,674 in curiosity, and $500
of conversion charges on a convertible observe payable. The Company recorded the
issuances on the contract worth, on the date of alternate, off-setting the notes
payable and accrued curiosity.

In January 2018, the Company issued 467 shares of frequent inventory, for a worth of
$6,541 in satisfaction of $6,041 in principal and $500 of conversion charges on a
convertible observe payable. The Company recorded the issuances on the contract
worth, on the date of alternate, off-setting the notes payable and accrued
curiosity.

In January 2018, the Company issued 250 shares of frequent inventory, for a worth of
$4,000 in satisfaction of $471 in principal, $3,029 in curiosity, and $500 of
conversion charges on a convertible observe payable. The Company recorded the
issuances on the contract worth, on the date of alternate, off-setting the notes
payable and accrued curiosity.



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Off-Balance Sheet Arrangements

Under the definition contained in Item 303(a)(4)(ii) of Regulation S-Ok, we do
not have any off-balance sheet preparations, financings, or different relationships
with unconsolidated entities or different individuals, also referred to as “particular objective
entities” (SPEs).



Critical Accounting Policies



The Company’s vital accounting insurance policies are introduced within the Company’s
notes to monetary statements for the interval ended December 31, 2019 and 2018,
that are contained on this submitting and the Company’s 2018 Annual Report on Form
10-Ok. The vital accounting insurance policies which are most crucial and assist in
totally understanding and evaluating the reported monetary outcomes embrace the
following:


    ·   The Company prepares its monetary statements in conformity with usually
        accepted accounting rules in the United States of America. These
        principals require administration to make estimates and assumptions that
        have an effect on the reported quantities of property and liabilities and disclosure of
        contingent property and liabilities on the date of the monetary statements
        and the reported quantities of revenues and bills through the reporting
        interval. Management believes that these estimates are affordable and have
        been mentioned with the Board of Directors; nevertheless, precise outcomes may
        differ from these estimates.

    ·   The Company at the moment doesn't challenge credit score on companies offered,
        subsequently there are not any accounts receivable. No allowance for uncertain
        accounts is taken into account essential to be established for quantities that will
        not be recoverable, since there was no credit score issued.

    ·   Long-lived property resembling property, gear and identifiable intangibles
        are reviewed for impairment at any time when details and circumstances point out that
        the carrying worth is probably not recoverable. When required impairment losses
        on property to be held and used are acknowledged primarily based on the truthful worth of
        the asset. The truthful worth is set primarily based on estimates of future money
        flows, market worth of comparable property, if accessible, or unbiased
        value determinations, if required. If the carrying quantity of the long-lived asset is
        not recoverable from its undiscounted money flows, an impairment loss is
        acknowledged for the distinction between the carrying quantity and truthful worth
        of the asset. When truthful values should not accessible, the Company estimates
        truthful worth utilizing the anticipated future money flows discounted at a price
        commensurate with the danger related to the restoration of the property. We
        didn't acknowledge any impairment losses for any durations introduced.

    ·   The Company points restricted inventory to consultants for varied companies.
        Cost for these transactions are measured on the truthful worth of the
        consideration obtained or the truthful worth of the fairness devices issued,
        whichever is measurable extra reliably measurable. The worth of the frequent
        inventory is measured on the earlier of (i) the date at which a agency
        dedication for efficiency by the counterparty to earn the fairness
        devices is reached or (ii) the date at which the counterparty's
        efficiency is full.



Recent Accounting Pronouncements

The Financial Accounting Standards Board and different standard-setting our bodies
issued new or modifications to, or interpretations of, current accounting
requirements through the yr. The Company has fastidiously thought of the brand new
pronouncements that alter earlier usually accepted accounting rules and
doesn’t imagine that any new or modified rules can have a cloth affect
on the company’s reported monetary place or operations within the close to time period.
These lately issued pronouncements have been addressed within the footnotes to the
monetary statements included on this submitting.

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