Liquidity

3 Months Ended

Mar. 31, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

NOTE 7

LIQUIDITY

As reflected in the accompanying unaudited condensed consolidated financial statements, the Company used cash in operations of $140,295, has an accumulated deficit of $2,081,313, and had a net loss of $161,750 for the three months ended March 31, 2022.

On March 23, 2020, the Company temporarily closed the delicatessen due to the stay-at-home order issued by the Governor of New Jersey. Although the Stay at Home at Home Order was lifted, on October 24, 2020, the Governor signed Executive Order No. 191 extending the Public Health Emergency for another 30 days. The deli was re-opened on September 8, 2020, with a “soft opening” to a limited audience, prior to its “Grand Re-Opening” to the public on September 22, 2020.

The Company is slowly regaining its customer base since reopening. Even though the delicatessen has been re-opened, the Company has experienced a slowdown in customer’s visit due to the current economic condition. There can be no assurance that the Company will generate sufficient revenues to continue its operations. The Company expects the growth rate and sales to be volatile in the near term.

As of March 31, 2022, the Company had $1,009,074 of cash on hand. The Company estimates its cash burn rate to be approximately $25,000 per month. Management believes that the actions taken with respect to the COVID-19 pandemic and current working capital are sufficient to sustain its current operations at its current spending levels for the next 12 months. However, the Company is unable to estimate the ultimate impact of the COVID-19 pandemic on its financial condition and future results of operations.

MAKAMER HOLDINGS, INC. 10-Q