UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q

☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

~~For~~for the quarterly period ended ~~December~~ June 3130, ~~2021~~ 2022

☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

~~For~~for the transition ~~period~~ period from ~~__________~~ to ~~__________.~~

Commission File Number: 000-55348

Palayan Resources, Inc.
(Exact name of registrant as specified in its charter)

Nevada	83-4575865
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

850 Teague Trail, #580
Lady Lake, FL	32159
(Address of principal executive offices)	(Zip code)

(407) 536-9422
(Registrant’s telephone number, including area code)

~~________________________________~~Securities registered pursuant to Section 12(b) of the Act:

~~(Former~~Title ~~name~~of orClass ~~former~~Trading ~~address~~Symbol(s) ~~and~~Name ~~former~~of ~~fiscal year,~~Exchange ifon ~~changed~~which ~~since~~registered ~~last~~Common ~~report)~~Stock PLYN OTCMarkets

Securities registered pursuant to Section 12(g) of the Act:

Title of Class Trading Symbol(s) Name of Exchange on which registered Common Stock PLYN OTC Markets

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 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 or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting 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 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 ☐

The number of shares of the Registrant’s common stock, par value $.001 per share, outstanding as of ~~January~~August ~~31,~~__ ~~2022~~ was 37,376,891.

Special Note Regarding Forward-Looking Statements

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). These forward-looking statements are not historical facts but rather are based on current expectations, estimates and projections. We may use words such as “anticipate,” “expect,” “intend,” “plan,” “believe,” “foresee,” “estimate” and variations of these words and similar expressions to identify forward-looking statements. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and other factors, some of which are beyond our control, are difficult to predict and could cause actual results to differ materially from those expressed or forecasted. These risks and uncertainties include the following:

The availability and adequacy of our cash flow to meet our requirements;

Economic, competitive, demographic, business and other conditions in our local and regional markets;

Changes or developments in laws, regulations or taxes in our industry;

Actions taken or omitted to be taken by third parties including our suppliers and competitors, as well as legislative, regulatory, judicial and other governmental authorities;

Competition in our industry;

The loss of or failure to obtain any license or permit necessary or desirable in the operation of our business;

Changes in our business strategy, capital improvements or development plans;

The availability of additional capital to support capital improvements and development; and

Other risks identified in this report and in our other filings with the Securities and Exchange Commission (“SEC”).

This report should be read completely and with the understanding that actual future results may be materially different from what we expect. The forward-looking statements included in this report are made as of the date of this report and should be evaluated with consideration of any changes occurring after the date of this Report. We will not update forward-looking statements even though our situation may change in the future and we assume no obligation to update any forward-looking statements, whether resulting from new information, future events or otherwise.

Use of Term

Except as otherwise indicated by the context, references in this Quarterly Report to the words "we," "our," "us," the "Company," "PLYN," or “Palayan” refer to Palayan Resources, Inc. All references to “USD” or United States Dollars refer to the legal currency of the United States of America.

PALAYAN RESOURCES, INC.

FORM 10-Q

~~December~~June 3130, ~~2021~~2022

TABLE OF CONTENTS

		Page
PART I – FINANCIAL INFORMATION		3
Item 1.	Financial Statements	3
	Condensed Balance Sheets (unaudited) as of December 31, 2021 and March 31, 2021	3
	Condensed Balance Sheets as of June 30, 2022 (unaudited) and March 31, 2022	3
	Condensed Statements of Operations (unaudited) for the Three and Nine Months Ended December 31, 2021 and 2020	4
	Condensed Statements of Operations (unaudited) for the Three Months Ended June 30, 2022 and 2021	4
	Condensed Statements of Shareholders’ Deficit (unaudited) for the Three and Nine Months Ended December 31, 2021 and 2020	5
	Condensed Statements of Stockholders’ Deficit (unaudited) for the Three Months Ended June 30, 2022 and 2021	5
	Condensed Statements of Cash Flows (unaudited) for the Nine Months Ended December 31, 2021 and 2020	6
	Condensed Statements of Cash Flows (unaudited) for the Three Months Ended June 30, 2022 and 2021	6
	Notes to Condensed Financial Statements (unaudited)	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	1513
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	1816
Item 4.	Control and Procedures	1916
PART II – OTHER INFORMATION		2017
Item 1.	Legal Proceedings	2017
Item 1A.	Risk Factors	2017
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	2017
Item 3.	Defaults Upon Senior Securities	2017
Item 4.	Mine Safety Disclosures	2017
Item 5.	Other Information	2017
Item 6.	Exhibits	2017
SIGNATURES		2118
CERTIFICATIONS

PART I – FINANCIAL INFORMATION

Item 1. Financial Statements

PALAYAN RESOURCES, INC.

CONDENSED BALANCE SHEETS

	December 31, 2021			March 31, 2021
	June 30, 2022			March 31, 2022
	(unaudited)	~~(unaudited)~~
ASSETS
Current assets:
Cash	$	~~582~~213		$	~~98,889~~426
Total current assets		582			98,889
Prepaid expense		1,500			2,250
Equipment, net		584			866
Total current assets		1,713			2,676
Total Assets	$	1,166		$	99,755
Equipment, net		398			491
Total Assets	$	2,111		$	3,167
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities:
Accounts payable and accrued liabilities	$	2857,~~273~~873		$	543,~~168~~063
Note payable – related party		25,000			25,000
Convertible note payable – non-related party, net of debt discount		163,416			–
Convertible notes payable – non-related party, net of debt discount		245,877			204,419
Derivative liabilities		~~209~~113,~~635~~441			–180,181
Due to related party		4,000			–
Due to related parties		112,532			54,582
Total current liabilities		~~430~~554,~~324~~723			30507,~~168~~245
Long-term liabilities:
Total Liabilities		554,723			507,245
Convertible note payable – non-related party, net of debt discount		–			34,116
Derivative liabilities		–			322,285
Total long-term liabilities		–			356,401
Total Liabilities		430,324			386,569
Commitments and contingencies		–			–
Stockholders' deficit:
Preferred stock, $0.001 par value, 100,000,000 shares authorized		–			–
Series A – 5,000,000 shares authorized; 2,500,000 issued and outstanding at December 31, 2021 and March 31, 2021, respectively		2,500			2,500
Series A – 5,000,000 shares authorized; 2,500,000 issued and outstanding at June 30, 2022 and March 31, 2022, respectively		2,500			2,500
Series B – 5,000,000 shares authorized; none issued and outstanding at December 31, 2021 and March 31, 2021, respectively		–			–
Series B – 5,000,000 shares authorized; none issued and outstanding at June 30, 2022 and March 31, 2022, respectively		–			–
Series C – 5,000,000 shares authorized; none issued and outstanding at December 31, 2021 and March 31, 2021, respectively		–			–
Series C – 5,000,000 shares authorized; none issued and outstanding at June 30, 2022 and March 31, 2022, respectively		–			–
Common stock, $0.001 par value, 500,000,000 shares authorized; 37,376,891 and 35,973,557 shares issued and outstanding at December 31, 2021 and March 31, 2021, respectively		37,377			34,377
Common stock, $0.001 par value, 500,000,000 shares authorized; 37,376,891 shares issued and outstanding at June 30, 2022 and March 31, 2022, respectively		37,377			37,377
Common stock to be issued, none and 201,451 at December 31, 2021 and March 31, 2021, respectively		–			201
Additional paid-in capital		461,031			461,031
Additional paid-in capital		461,031			388,049
Accumulated deficit		(1,053,520	)		(1,004,986	)
Accumulated deficit		(930,066	)		(711,941	)
Total Stockholders' Deficit		(552,612	)		(504,078	)
Total Stockholders' Deficit		(429,158	)		(286,814	)
Total Liabilities and Stockholders’ Deficit	$	2,111		$	3,167
Total Liabilities and Stockholders’ Deficit	$	1,166		$	99,755

See accompanying Notes to the unaudited Financial Statements

PALAYAN RESOURCES, INC.

CONDENSED STATEMENTS OF OPERATIONS

(unaudited)

	For the Three Months Ended December 31, 2021			For the Three Months Ended December 31, 2020			For the Nine Months Ended December 31, 2021			For the Nine Months Ended December 31, 2020
	For the Three Months Ended June 30, 2022			For the Three Months Ended June 30, 2021
Operating expenses:
Selling and marketing expense	$	~~329~~–		$	~~1,756~~439		$	~~1,097~~		$	~~6,872~~
General and administrative expense		5968,~~681~~007			~~200~~73,~~224~~128			~~201,510~~			~~369,428~~
Total operating expense		6068,~~010~~007			~~201~~73,~~980~~567			~~202,607~~			~~376,300~~
Operating loss		(6068,~~010~~007	)		(~~201~~73,~~980~~567	)		~~(202,607~~	)		~~(376,300~~	)
Other income (expense):
Interest expense		(5,~~873~~809	)		(45,~~245~~186	)		~~(17,658~~	)		~~(8,104~~	)
Derivative income (expense)		3566,~~747~~740			(5314,~~746~~165	)		~~112,651~~			~~(53,746~~	)
Debt discount amortization		(41,~~914~~458	)		–(40,682	)		~~(124,510~~	)		–
Gain on extinguishment of debt		14,000			–			14,000			–
Total other income (expense)		19,473			(60,033	)
Total other income (expense)		1,960			(57,991	)		(15,517	)		(61,850	)
Loss before provision for income taxes		(48,534	)		(133,600	)
Loss before provision for income taxes		(58,050	)		(259,971	)		(218,124	)		(438,150	)
Provision for income taxes		–			–
Provision for income taxes		–			–			–			–
Net loss	$	(48,534	)	$	(133,600	)
Net loss	$	(58,050	)	$	(259,971	)	$	(218,124	)	$	(438,150	)
Weighted average shares basic and diluted		37,376,891			35,728,221
Weighted average shares basic and diluted		35,973,557			34,376,649			35,851,559			33,270,140
Weighted average basic and diluted loss per common share	$	(0.00	)	$	(0.00	)
Weighted average basic and diluted loss per common share	$	(0.00	)	$	(0.01	)	$	(0.01	)	$	(0.01	)

See accompanying Notes to the unaudited Financial Statements

PALAYAN RESOURCES, INC.

CONDENSED STATEMENTS OF STOCKHOLDERS' DEFICIT

(Unaudited)

	Preferred Stock					Preferred Stock		~~Preferred Stock~~		Preferred Stock				~~Preferred Stock~~			Common Stock					Additional					Total	~~Common Stock~~						~~Additional~~					~~Total~~
	Series A					Series B		~~Series B~~		Series C			Common Stock	~~Series C~~			To Be Issued				~~Common Stock~~	Paid-In		Accumulated			Stockholders’	~~To Be Issued~~						~~Paid-In~~		~~Accumulated~~			~~Stockholders’~~
	Shares		Amount		~~Amount~~	Shares	Amount	~~Shares~~		Shares	Amount		Shares	~~Shares~~	Amount		~~Amount~~Shares		Amount		~~Shares~~	Capital		~~Amount~~Deficit			Deficit	~~Shares~~			~~Amount~~			~~Capital~~		~~Deficit~~			~~Deficit~~
Balance - March 31, 2021		2,500,000			$	2,500			–		$	–			–		$	–				34,376,758		$	34,377				201,451		$	201		$	388,049	$	(711,941	)	$	(286,814	)
Balance - March 31, 2022	2,500,000		$	2,500		–	$	–		–	$	–	37,376,891		$	37,377	–		$	–		$	461,031	$	(1,004,986	)	$	(504,078	)
Shares issued for services		–				–			–			–			–			–				1,596,799			1,597				(201,451	)		(201	)		4,185		–			5,581
Net loss	–			–		–		–		–		–	–			–	–			–			–		(48,534	)		(48,534	)
Net loss		–				–			–			–			–			–				–			–				–			–			–		(133,600	)		(133,600	)
Balance – June 30, 2022 (Unaudited)	2,500,000		$	2,500		–	$	–		–	$	–	37,376,891		$	37,377	–		$	–		$	461,031	$	(1,053,520	)	$	(552,612	)
Balance – June 30, 2021 (Unaudited)		2,500,000				2,500			–			–			–			–				35,973,557			35,974				–			–			392,234		(845,541	)		(414,833	)
Net loss		–				–			–			–			–			–				–			–				–			–			–		(26,475	)		(26,475	)
Balance – September 30, 2021 (Unaudited)		2,500,000				2,500			–			–			–			–				35,973,557			35,974				–			–			392,234		(872,016	)		(441,308	)
Shares issued for debt settlement		–				–			–			–			–			–				1,403,334			1,403				–			–			68,797		–			70,200
Net loss		–				–			–			–			–							–			–				–			–			–		(58,050	)		(58,050	)
Balance – December 31, 2021 (Unaudited)		2,500,000			$	2,500			–		$	–			–		$	–				37,376,891		$	37,377				–		$	–		$	461,031	$	(930,066	)	$	(429,158	)

Preferred Stock

~~Preferred Stock~~

Preferred Stock

~~Preferred Stock~~

Common Stock

Additional

Total

~~Common Stock~~

~~Additional~~

~~Total~~

Series A

Series B

~~Series B~~

Series C

Common Stock

~~Series C~~

To Be Issued

~~Common Stock~~

Paid-In

Accumulated

Stockholders’

~~To Be Issued~~

~~Paid-In~~

~~Accumulated~~

~~Stockholders’~~

Amount

~~Amount~~

Amount

~~Shares~~

Amount

~~Shares~~

Amount

~~Amount~~Shares

Amount

~~Shares~~

Capital

~~Amount~~Deficit

Deficit

~~Shares~~

~~Amount~~

~~Capital~~

~~Deficit~~

Balance - March 31, 2020

–

30,020,000

30,020

–

13,019

(251,437

)

(208,398

)

Balance - March 31, 2021

2,500,000

2,500

–

34,376,758

34,377

201,451

201

388,049

(711,941

)

(286,814

)

Shares issued for services

–

346,758

347

–

1,040

–

1,387

Common stock issued for services

–

1,596,799

1,597

(201,451

)

(201

)

4,185

–

5,581

Shares issued as deposit for acquisition

–

4,000,000

4,000

–

12,000

16,000

Net loss

–

(133,600

)

(133,600

)

Net loss

–

(61,746

)

(61,746

)

Balance – June 30, 2021 (Unaudited)

2,500,000

2,500

–

35,973,557

35,974

–

392,234

(845,541

)

(414,833

)

Balance – June 30, 2020 (Unaudited)

–

34,366,758

34,367

–

26,059

(313,183

)

(252,757

)

Sale of common shares

–

10,000

–

4,990

–

5,000

Beneficial conversion feature

–

18,432

–

18,432

Net loss

–

(116,433

)

(116,433

)

Balance September 30, 2020 (Unaudited)

–

34,376,758

34,377

–

49,481

(429,616

)

(345,758

)

Shares issued for services

2,500,000

2,500

–

147,500

–

150,000

Net loss

–

(259,971

)

(259,971

)

Balance December 31, 2020

2,500,000

2,500

–

34,376,758

34,377

–

196,981

(689,587

)

(455,729

)

See accompanying notes to unaudited financial statements

PALAYAN RESOURCES, INC.

CONDENSED STATEMENTS OF CASH FLOWS

(unaudited)

	For the Nine Months Ended December 31, 2021			For the Nine Months Ended December 31, 2020
	For the Three Months Ended June 30, 2022			For the Three Months Ended June 30, 2021
Cash flows from operating activities:
Net loss	$	(~~218~~48,~~124~~534	)	$	(~~438~~133,~~150~~600	)
Adjustments to reconcile net loss to net cash used in operating activities:
Value of shares issued as acquisition deposit		–			16,000
Shares issued for services		–			5,581
Shares issued for services		5,581			151,388
Derivative (income) expense		(66,740	)		14,165
Shares issued in settlement of debt		(14,000	)		–
Depreciation and amortization		93			93
Derivative (income) expense		(112,651	)		53,746
Debt discount amortization		41,458			40,682
Depreciation and amortization		282			9,214
Debt discount amortization		124,510			–
Changes in operating assets and liabilities:
Accounts payable and accrued liabilities		42,895			2,668
Prepaid expense		750			–
Due to related parties		73,200			(17,405	)
Accounts payable and accrued liabilities		14,810			9,599
Net cash used in operating activities		(98,307	)		(222,539	)
Due to related parties		57,950			–
Cash flows from investing activities:
Net cash used in operating activities		(213	)		(63,480	)
Capital expenditures		–			(1,123	)
Net change in cash		(213	)		(63,480	)
Net cash used in investing activities		–			(1,123	)
Cash, beginning of period		426			98,889
Cash flows from financing activities:
Cash, end of period	$	213		$	35,409
Proceeds from sale of common stock		–			5,000
Proceeds from issuance of notes payable – non-related parties		–			215,000
Proceeds from issuance of notes payable – related party		–			25,600
Net cash provided by financing activities		–			245,600
Net change in cash		(98,307	)		21,938
Cash, beginning of period		98,889			77
Cash, end of period	$	582		$	22,015
Supplemental disclosures of cash flow information
Cash paid during the period for:
Interest	$	–		$	–
Taxes	$	–		$	–
Supplemental disclosures of non-cash investing and financing activities:
Beneficial conversion feature	$	–		$	18,432

See accompanying Notes to the unaudited Financial Statements

PALAYAN RESOURCES, INC.

NOTES TO (UNAUDITED) CONDENSED FINANCIAL STATEMENTS

~~DECEMBER~~JUNE 3130, ~~2021 AND 2020~~2022

1.	Organization History and Business

Organization and Business

We were incorporated in the State of Nevada on July 26, 2013. Onas ~~April 2, 2020, we entered into~~ a ~~Share~~mineral ~~Exchange~~exploration ~~Agreement~~and ~~(the~~production ~~“Exchange~~company. ~~Agreement”) with~~On ~~Scythian~~May ~~Mining~~10, ~~Group~~2021, ~~Ltd.~~we ~~(“SMG”),~~issued a ~~United~~press ~~Kingdom~~release ~~company,~~stating toour Company ~~acquire~~was ~~100%~~changing ~~interest~~its inmarket ~~SMG-Gold~~focus ~~B.V. (~~“~~SMG-Gold”), a~~Management ~~Dutch~~recognizes ~~limited~~that ~~liability~~our ~~company~~Company ~~(the~~needs ~~“SMG-Gold~~to ~~Acquisition”).~~move ~~While~~in ~~the~~a ~~Exchange~~new ~~Agreement~~direction ~~was~~and ~~closed~~will onpursue ~~July 7, 2020, it~~acquisition ~~was~~opportunities ~~never~~that ~~finalized~~can ~~because~~benefit ~~consideration~~private ~~for~~companies ~~the~~through ~~transaction~~our ~~was~~Company’s ~~never~~public ~~fully exchanged~~status. OnThe ~~November~~benefit ~~18,~~to ~~2020,~~ our ~~Board~~Company ofand ~~Directors~~its stockholders ~~voted~~will ~~unanimously~~be tobuilt ~~rescind~~on ~~the~~acquisitions ~~transaction~~based ~~and~~on ~~return~~growth ~~the~~and ~~SMG-Gold~~revenue ~~shares~~of totargeted ~~SMG~~acquisitions. ~~See Note 3 for additional information.~~

OnWe ~~January~~are 8,restructuring ~~2021,~~our ~~we entered~~Company ~~into~~as a ~~Joint~~holding ~~Venture Agreement (the “JV Agreement”) with Provenance Gold Corporation, a Canadian publicly traded~~ company ~~(“PAU”) to~~seeking ~~fund~~transactions ~~and~~on ~~develop~~ a ~~series~~managed ~~of 102 lode mineral claims and one (1) patented mining claim~~basis, ~~all~~acquiring ofcontrolling ~~which~~interest ~~are located~~ in ~~Nye~~acquisition ~~County~~targets inas ~~the State~~subsidiaries of our ~~Nevada (the “Venture”)~~Company. ~~Subsequent~~Using toa ~~the~~holding ~~closing~~company ~~of the JV Agreement~~strategy, ~~both~~we ~~parties~~will ~~deemed~~be itable ~~in their best interests not~~ to ~~move~~mitigate ~~forward~~risk ~~with~~while ~~the~~making ~~Venture~~multiple ~~based on various factors, including, but not limited to, an inability to raise sufficient capital to support the Venture~~acquisitions. ~~Accordingly,~~All ontargeted ~~March 22, 2021, we entered into a Rescission Agreement with PAU rescinding and rendering null~~acquisitions ~~and~~must ~~void~~be ~~the~~audited JVor ~~Agreement,~~auditable. ~~and~~We ~~returning~~will ~~any~~make ~~funds~~either ~~advanced~~majority byor ~~either~~minority ~~party~~investments in ~~connection~~companies ~~with~~that ~~the~~meet JVits ~~Agreement~~investment criteria.

On May 10, 2021, we issued a press release stating our Company was changing its market focus as our management recognized that our Company needs to move in a new direction and will pursue acquisition opportunities that can benefit private companies through our Company’s public status. The benefit to our Company and its shareholders will be built on acquisitions based on growth and revenue of targeted acquisitions.

We will be restructured as a holding company seeking transactions on a managed basis, acquiring controlling interest in acquisition targets as subsidiaries of our Company. Using a holding company strategy, we will be able to mitigate risk while making multiple acquisitions. All targeted acquisitions must be audited or auditable. We will make either majority or minority investments in companies that meet its investment criteria.

As a holding company, we will not manufacture anything, sell any products or services, or conduct any other business operations. Our purpose is to hold the controlling stock or membership interests in other companies.

Our Company is taking an agnostic approach regarding industry, in almost every contemplated acquisition, we will retain the management team of the acquired company. The subsidiary’s own management will run the day-to-day business, as this retention of management post transaction will maintain operational continuity. Our Company’s management will be responsible for overseeing how the subsidiaries are run and assisting their management as needed.

Our Company is seeking opportunities in mature private companies that are in transition or growth mode.

We have begun sourcing opportunities through several third-party organizations. Transactions will be subject to industry standard due-diligence requirements. Of course, no two acquisitions are the same, so the due diligence process will vary from one situation to the next. In general, however, there are up to five types of due diligence; (i) Business; (ii) Accounting; (iii) Legal; (iv) Valuation and (v) Environmental, that will need to be completed as part of the process for any proposed transaction.

Proposed Acquisition

Using this new strategy, on December 9, 2021 we executed a Memorandum of Understanding (the “MOU”) with a Singapore based holding company whose subsidiaries are engaged principally in foreign exchange remittance services. Under the MOU, our Company desires to acquire 100% of the Singapore based company for a purchase price of $80,000,000, consisting of common and preferred stock totaling $70,000,000 and subordinated debt of $10,000,000. The proposed acquisition is subject to due diligence customary to transactions of this type. ~~There~~and ~~can~~we beare nocurrently ~~assurance~~conducting ~~that~~such adue ~~definitive~~diligence. No definitive agreement has been reached between the parties toand ~~the~~there ~~transaction~~can be no assurance that an agreement can be reached.

On March 11, 2020, the World Health Organization declared COVID-19 a global pandemic. This contagious disease outbreak and any related adverse public health developments, has adversely affected workforces, economies, and financial markets globally, leading to an economic downturn. The impact on our Company is not currently determinable, but management continues to monitor the situation.7

2.	Summary of Significant Accounting Policies

Basis of Presentation

The accompanying unaudited interim financial statements have been prepared by us pursuant to the rules and regulations of the United States Securities Exchange Commission (“SEC”). Certain information and disclosures normally included in the annual financial statements prepared in accordance with the accounting principles generally accepted in the Unites States have been condensed or omitted pursuant to such rules and regulations. In the opinion of management, all adjustments and disclosures necessary for a fair presentation of these financial statements have been included. Such adjustments consist of normal recurring adjustments. These interim financial statements should be read in conjunction with our Company’s historical financial statements and related notes filed with the SEC including our Annual Report on Form 10-K for the fiscal year ended March 31, ~~2021~~2022 filed on ~~July~~June 1228, ~~2021~~2022. The results of operations for the three ~~and nine~~ months ended ~~December~~June 3130, ~~2021~~ 2022, are not necessarily indicative of the results that may be expected for the full year.

Going Concern Considerations

The accompanying ~~interim~~ financial statements have been prepared in conformity with generally accepted accounting principles in the United States, 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 $~~930~~1,~~066~~053,520 as of ~~December~~June 3130, ~~2021~~2022. Effective December 4, 2020, we entered into a Credit Line Agreement with Mambagone, S.A de C.V. (“Mambagone”) which ~~allowed~~allows for advances totaling $1,050,000. However, after advancing us $260,000 under the terms of the Credit Line Agreement, Mambagone made no further advances. See Note 65 for further information. As such, there is uncertainty whether our capital needs over the next 12 months can be met and, as a result, there is reasonable doubt about our ability to continue as a going concern for one year from the date of this report. If we are unable to obtain adequate capital to meet our working capital needs, we could be forced to cease operations.

The continuation of our Company as a going concern is dependent upon continued financial support from our ~~shareholders~~stockholders, the 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.

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

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	- Include other inputs that are directly or indirectly observable in the marketplace.
	Level 3	- Unobservable inputs which are supported by little or no market activity.

The fair value hierarchy also 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, 2021 and March 31, 2021. The respective carrying value of certain on-balance-sheet financial instruments approximated their fair values. These financial instruments include cash, accounts payable, and accrued liabilities. Fair values for these items were assumed to approximate carrying values because they are short-term in nature or they are payable on demand. Fair values for derivative liabilities were determined under level 2 since inputs used are either directly or indirectly observable in the marketplace.8

Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of June 30, 2022 and March 31, 2022. The respective carrying value of certain on-balance-sheet financial instruments approximated their fair values. These financial instruments include cash, prepaid expense, accounts payable, and accrued expenses. Fair values for these items were assumed to approximate carrying values because they are short-term in nature or they are payable on demand. Fair values for derivative liabilities were determined under level 2 since inputs used are either directly or indirectly observable in the marketplace.

Derivative Financial Instruments – We account for convertible debt with conversion features representing embedded derivative liabilities in accordance with ASC 815, Derivatives and Hedging. ASC 815-15-25-1 requires that embedded derivative instruments be bifurcated and assessed on their issuance date and measured at their fair value for accounting purposes. In determining the appropriate fair value, we use the Black-Scholes option valuation method, resulting in a reduction of the initial carrying amount of the notes as unamortized debt discount. The unamortized discount is amortized over the term of each note using the effective interest method.

The fair value of derivative instruments is recorded and shown separately under liabilities. Changes in the fair value of derivative liabilities are recorded in the consolidated statement of operations under non-operating income (expense).

We evaluate each of our financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives. For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value and is then re-valued at each reporting date, with changes in the fair value reported in the consolidated statements of operations. For stock-based derivative financial instruments, we use a weighted average Black-Scholes-Merton option-pricing model to value the derivative instruments at inception and on subsequent valuation dates. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is evaluated at the end of each reporting period. Derivative instrument liabilities are classified in the balance sheet as current or non-current based on whether net-cash settlement of the derivative instrument could be required within twelve months of the balance sheet date.

Basic and Diluted 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~~stockholders (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 dilutive potential shares if their effect is anti-dilutive. As of ~~December~~June 3130, ~~2021~~ 2022 and ~~2020~~2021, potentially dilutive shares related to our convertible notes payable and Series A Preferred Stock have not been included in in the diluted loss per share computations as they would be antidilutive for the periods presented.

New Accounting Pronouncements

We have reviewed all recently issued accounting pronouncements and determined that they were either disclosed in our most recently filed Form 10-K or, based on current operations, are not believed to have a material impact on our financial statements.

3. ~~SMG-Gold~~Equipment, ~~Acquisition~~net

As ~~stated~~of inJune ~~Note~~30, 12022, ~~on April~~equipment 2,consists ~~2020,~~of wea ~~entered~~laptop ~~into the Exchange Agreement with SMG and SMG’s wholly owned subsidiary SMG-Gold~~computer. ~~Under~~Depreciation ~~the~~is ~~Exchange~~being ~~Agreement, SMG~~calculated ~~agreed~~on toa ~~exchange one hundred percent (100%) of the issued and outstanding shares of SMG~~straight-~~Gold~~line ~~for~~basis anover ~~aggregate~~a ~~of 1,000,000 shares of our Series A Preferred Stock and 1,000,000 shares of our Series C Preferred Stock (the “Preferred Stock Consideration”). In November 2019, SMG~~three-~~Gold~~year ~~had~~period ~~been assigned the rights~~ and ~~obligations of these participatory interests in Altyn Kokus LLP, a limited liability partnership organized under the laws of Kazakhstan engaged in mining operations, but the assignment~~ was ~~not~~$93 ~~completed~~for ~~since~~both ~~the participatory interests had not been legally transferred to SMG~~three-~~Gold~~month asperiods aended ~~result~~June ~~of certain payments not being made to Bulat Kulchimbayev (“Bulat”)~~30, a2022 ~~Kazakhstan~~and ~~national, in consideration for the sale of the participatory interests~~2021.

On May 1, 2020, SMG-Gold and Bulat agreed to modify the obligations payable to Bulat as follows: (1) SMG-Gold would pay Bulat a total of $750,000 in US Dollars, payable at various dates through October 15, 2020 ($15,000 of which has been paid to date); and (2) in anticipation of the closing of the Exchange Agreement, SMG-Gold would provide that Palayan Resources, Inc. would issue to Bulat 4,000,000 shares of our restricted common stock. We issued the 4,000,000 shares of our common stock to Bulat on June 8, 2020 and recorded a deposit for the proposed SMG-Gold Acquisition of $16,000 based on an independent third-party valuation of the fair value of our common stock on the date of issuance.9

~~Bulat never received any cash obligations owed to him, except for the $15,000 paid by us in July 2020~~4. AsRelated ~~such,~~Party Bulat did not transfer the participation interests in Altyn Kokus LLP to SMG-Gold. As a result, the transaction contemplated by the Exchange Agreement was deemed to be incomplete. Accordingly, on November 18, 2020, our Board of Directors voted unanimously to rescind the Exchange Agreement, to return the parties to their respective positions prior to entering into the Exchange Agreement, to the extent possible, to return the SMG-Gold shares to SMG, and to place a Stop Transfer Order with our transfer agent for the 4,000,000 shares of our common stock issued to Bulat.Transactions

~~Because~~Payable ~~of our Board’s decision~~ to rescind the Exchange Agreement, during the three months ended December 31, 2020, we recorded a General and Administrative expense totaling $31,000, consisting of the $15,000 paid in cash to Bulat plus $16,000 in value for the 4,000,000 common shares issued to Bulat, since the Stop Transfer Order was unable to be put into effect.Stockholder

Due to related party of $112,532 as of June 30, 2022 consists of $108,032 in advances by C2C Business Strategies (“C2C”), a large stockholder, to cover certain operating expenses and $4,500 owed to one of our outside Directors for Directors fees. ~~Equipment~~As of March 31, ~~net~~2022, the balance of $54,582 consists of $52,332 in advances from C2C and $2,250 owed to the outside Director. From time to time, we have received advances from certain of our large stockholders, which we reported on our Balance Sheets under the caption Due to related parties. The advances bear no interest and are repayable on demand.

AsUnder ofan ~~December~~April 311, ~~2021,~~2020 ~~equipment~~Executive ~~consists~~Employment ofAgreement, aas ~~laptop~~amended, ~~computer.~~we ~~Depreciation~~retained isthe ~~being~~services ~~calculated~~of onMr. aJames ~~straight-line~~Jenkins, ~~basis~~our ~~over~~CEO aand ~~three-year~~Director, ~~period~~by and ~~was~~through ~~$94~~C2C. ~~and~~We expensed $~~282~~36, ~~respectively,~~000 for ~~the~~Mr. ~~three~~Jenkins ~~and~~services ~~nine~~during ~~months~~each ~~ended~~of ~~December 31, 2021. Depreciation for~~ the three-month ~~and~~periods ~~nine months~~ ended ~~December~~June 3130, ~~2020 was~~2022 ~~$283~~ and ~~$496, respectively~~2021.

5. ~~Related~~Notes ~~Party Transactions~~Payable

~~Due~~Notes topayable ~~related~~consists ~~party~~ of ~~$4,000 as~~the offollowing ~~December~~at ~~31, 2021 represents advances by C2C Business Strategies (“C2C”), a large stockholder, to cover certain operating~~June ~~expenses. From time to time~~30, we2022 ~~have received advances from certain of our large stockholders, which we reported on our Balance Sheets under the caption Due to related parties. The advances bear no interest~~ and ~~are repayable on demand. There were no Due to related parties balance at~~ March 31, ~~2021.~~2022:

Under an April 1, 2020 Executive Employment Agreement, amended December 2, 2020, we retained the services of Mr. James Jenkins, our CEO and Director, by and through C2C. During the nine months ended December 31, 2021 and 2020, we expensed $96,000 and $67,500, respectively, for the services of Mr. Jenkins.

Schedule of notes payable
	June 30, 2022			March 31, 2022
Non-Related Parties:
Advances under unsecured credit line agreement	$	260,000		$	260,000
Less debt discount on amounts borrowed		(14,123	)		(55,581	)
Subtotal — non-related parties		245,877			204,419
Less current portion		(245,877	)		(204,419	)
Long-term portion	$	–		$	–

Related Party:
Unsecured promissory note	$	25,000		$	25,000
Subtotal — related party		25,000			25,000
Less current portion		(25,000	)		(25,000	)
Long-term portion	$	–		$	–

During the three months ended December 31, 2021, we issued shares of our common stock to one shareholder in settlement of amounts owed to them. We issued 1,153,334 shares to C2C in settlement of $69,200 of due to related party amounts owed to them. The shares issued were valued at $4,613 based on an independent third-party valuation of the fair value of our common stock and, because this is a related party, the gain was recorded in additional paid-in capital.

During the three months ended December 31, 2020, we issued a total of 2,500,000 Series A preferred shares to our CEO and Director. We valued the preferred shares at $150,000 based on a June 2020 independent third-party valuation of the fair value of the underlying common stock.

6. Notes Payable

Notes payable consists of the following at December 31, 2021 and March 31, 2021:

Schedule of notes payable
	December 31, 2021			March 31, 2021
Non-Related Parties:
Advances under unsecured credit line agreement	$	260,000		$	260,000
Less debt discount on amounts borrowed		(96,584	)		(225,884	)
Subtotal – non-related parties		163,416			34,116
Less current portion		(163,416	)		–
Long-term portion	$	–		$	34,116
Related Party:
Unsecured promissory note		25,000			25,000
Subtotal – related party		25,000			25,000
Less current portion		(25,000	)		(25,000	)
Long-term portion	$	–			–

NON-RELATED PARTIES

Unsecured Credit Line Agreement

Effective December 4, 2020, we entered into a Credit Line Agreement with Mambagone (“the LOC”) under which Mambagone agreed to advance our Company a total of $1,050,000 on various dates specified in the LOC. Each advance under the LOC bears interest at 8% per annum and matures, along with all accrued and unpaid interest, on July 31, 2022. To date, Mambagone has advanced us $260,000. Despite repeated requests on our part for additional advances as required by the LOC, Mambagone made no further advances. Mambagone’s lack of performance under the LOC created an event of default by the lender and we sent a letter to Mambagone, via Federal Express, dated December 15, 2021 notifying them of such default and of our termination of the LOC which letter was received on December 31, 2021. According to the terms of the LOC, a default by the lender results in a portion of the advances being considered to not be due and payable and shall be considered as forgiven or fully discharged. Under the guidance of ASC 405-20-15-1, derecognition of a debt that has not been paid can only occur if the debtor is legally released from the debt, either judicially or by the creditor. We have not yet met the criteria of the relevant guidance but are attempting to do so. Once met, we expect to extinguish at minimum a portion of the debt.

Mambagone has the right, but not the obligation, at any time, to convert all or any portion of the outstanding principal amount and accrued interest into fully paid and non-assessable shares of our common stock. The conversion price shall be equal to seventy-five percent (75%) of the average of the closing price of our common stock during the ten (10) trading days immediately preceding the conversion date. We determined that the conversion provisions of the Mambagone LOC contain an embedded derivative feature and we valued the derivative feature separately, recording debt discount and derivative liabilities in accordance with the provisions of the advances. See Note 7. We are amortizing the debt discount on a straight-line basis over the term of the advances. For the three and nine months ended December 31, 2021, we recorded amortization of debt discount of $41,914 and $124,510, respectively. Amortization for both the three and nine months ended December 31, 2020 was $4,678.

11Mambagone has the right, but not the obligation, at any time, to convert all or any portion of the outstanding principal amount and accrued interest into fully paid and non-assessable shares of our common stock. The conversion price shall be equal to seventy-five percent (75%) of the average of the closing price of our common stock during the ten (10) trading days immediately preceding the conversion date. We determined that the conversion provisions of the Mambagone LOC contain an embedded derivative feature and we valued the derivative feature separately, recording debt discount and derivative liabilities in accordance with the provisions of the advances. See Note 6. We are amortizing the debt discount on a straight-line basis over the term of the advances. For the three months ended June 30, 2022 and 2021, we recorded amortization of debt discount of $41,458 and $40,682, respectively. Interest expense in connection with this debt was $5,186 for both of the three-month periods ended June 30, 2022 and 2021.

Other Promissory Notes

On July 24, 2020, we issued an unsecured convertible promissory note to an unrelated third party in the principal amount of $50,000. The note, which bore interest at 10% per annum, was convertible at $1.00 per share. We determined that this note contained a beneficial conversion feature of $18,432 based on the difference between the fair market value of our common stock on the date of issuance and the conversion price. We recorded this amount as a debt discount and were amortizing the discount on a straight-line basis over the two-year term of the note. During the three and nine months ended December 31, 2020 we recorded amortization expense of $1,716 and $4,040 in connection with this note. In January 2021, all amounts owed under this note were forgiven by its holder and, as of December 31, 2021 and March 31, 2021, no amounts are owed under this note.

During the six months ended September 30, 2020, we issued two (2) notes payable to non-related parties totaling $30,000. The notes were unsecured, bore interest at 10% per annum, and were due on demand. All amounts owed to the two note holders were forgiven in January 2021 and, as of December 31, 2021 and March 31, 2021, no amounts are owed under these notes.

RELATED PARTY

Unsecured Promissory Note

On March 16, 2021, we issued an unsecured promissory note to one of our large stockholders in the amount of $25,000. The note bears interest at 10% per annum and is payable on demand. No demand has been made for payments against this note. Interest expense in connection with this note was $623 and zero 0 for the three months ended June 30, 2022 and 2021, respectively.

76. Derivative Liabilities

As stated in Note 65, Notes Payable, we determined that the advances under the unsecured credit line agreement each contained an embedded derivative feature in the ~~form~~ form of a conversion provision which was adjustable based on future prices of our common stock. In accordance with ASC 815-10-25, each ~~derivative~~ derivative feature was initially recorded at its fair value using the Black-Scholes option valuation method and then re-valued at ~~each~~the June 30, 2020 reporting date, with changes in the fair value reported in the statements of operations. Derivative liabilities are classified in the balance sheet as current or non-current based on whether net-cash settlement of the derivative instrument could be required within 12 months of the balance sheet date.

The following table represents our derivative liability activity for the three ~~and nine~~ months ended ~~December~~June 3130, ~~2021~~2022:

Schedule of derivative liability activity
Initial measurement of advances	$	264,203
Balance at March 31, 2022	$	180,181
Derivative expense		58,082
Derivative income		(66,740	)
Balance at March 31, 2021		322,285
Balance at June 30, 2022	$	113,441
Derivative expense		14,165
Balance at June 30, 2021		336,450
Derivative income		(91,068	)
Balance at September 30, 2021		245,382
Derivative income		(35,747	)
Balance at December 31, 2021	$	209,635

The fair value of the derivative features of the convertible notes were calculated using the following assumptions:

Schedule of assumptions used to calculate derivative features of convertible notes
	Nine Months Ended December 31, 2021
	Three Months Ended June 30, 2022
Expected term in years	~~Through 7/31/22~~	0.08
Risk-free interest rate	~~0.07% to 0.39%~~	1.28%
Annual expected volatility	~~164% to 201%~~	132%
Dividend yield	~~0.00%~~	0.00%

1211

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 issuance.

Volatility: We estimate the expected volatility of the stock price based on the corresponding volatility of our historical stock price for a period consistent with the convertible notes' expected terms.

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 convertible notes.

87. Capital Stock

On June 1, 2020, we amended our Articles of Incorporation to increase the number of authorized shares of our common stock from 75,000,000 to 500,000,000 and to authorize the issuance of up to 100,000,000 shares of preferred stock.

Preferred Stock

We are authorized to issue 100,000,000 shares of our $0.001 par value preferred stock and have designated three (3) series of preferred stock whose rights are described below:

Series A Preferred Stock – we have designated 5,000,000 Series A preferred shares. The Series A preferred ranking is senior to common shares, no dividends are payable, and each share is convertible into common shares at a rate of 15 common shares for each Series A preferred share. ~~The~~Each ~~voting rights for the~~ Series A preferred share ~~was~~is ~~originally~~entitled ~~designated~~ to be20 ~~100~~ votes ~~for~~on ~~each~~all ~~Series~~matters Asubject ~~preferred~~to ~~share.~~a Onvote ~~September~~of 4,stockholders. ~~2020~~There inare ~~the First Amendment to the Exchange Agreement~~2,500,000 ~~the voting rights were reduced to 20 votes for each~~ Series A preferred ~~share.~~shares Asissued ~~of December 31,~~and ~~2021~~outstanding ~~and~~at ~~March~~both ~~31,~~June ~~2021~~30, ~~2,500,000~~2022 ~~shares~~and ofMarch ~~Series~~31 ~~A preferred shares are outstanding~~2022.

Series B Preferred Stock – we have designated 5,000,000 Series B preferred shares. The Series B preferred ranking is senior to common stock, no dividends are payable, and each share is convertible into common shares at a rate of 10 common shares for each Series B preferred share. ~~The~~Each ~~voting rights for this~~ Series B preferred share is ~~designated~~entitled to be 10 votes ~~for~~on ~~each~~all ~~Series~~matters Bsubject ~~preferred~~to ~~share~~a vote of stockholders. No Series B preferred shares are issued and outstanding at either ~~December~~June 3130, ~~2021~~2022 or March 31, ~~2021~~2022.

Series C Preferred Stock – we have designated 5,000,000 Series C preferred shares. The Series C preferred ranking is senior to common stock, no dividends are payable, and each share is convertible into common shares at a rate of 30 common shares for each Series C preferred share. The Series C shares have no voting rights. No Series C preferred shares are issued and outstanding at either ~~December~~June 3130, ~~2021~~2022 or March 31, ~~2021~~ 2022.

Common Stock

We are authorized to issue 500,000,000 shares of our $0.001 par value common stock and each holder is entitled to one (1) vote on all matters subject to a vote of stockholders.

There was no common stock activity during the three months ended June 30, 2022. During the ~~nine~~three months ended ~~December~~ 31June 30, 2021, we issued ~~the~~201,451 ~~following~~shares of our common stock to a vendor for services. These shares: had been recorded in “Common Stock to be Issued” at March 31, 2021. We also issued 1,395,348 shares to the same vendor under the terms of a Services Agreement dated April 16, 2021. See Note 8.

18. ~~201,451~~Service shares of our common stock to a vendor for services. These shares had been recorded in “Common Stock to be Issued” at March 31, 2021. 2. 1,395,348 shares to the same vendor listed in item 1 above under the terms of a Services Agreement dated April 16, 2021. See Note 9. 3. 1,153,334 shares to C2C in settlement of Due to related party debt. See Note 5. 4. 250,000 shares to our attorney in settlement of accounts payable of $15,000. The shares were valued at $1,000 based on an independent third-party valuation of the fair value of our common stock and, accordingly, we recorded a gain on extinguishment of debt for this transaction.

During the nine months ended December 31, 2020, we issued the following shares:

1. 315,790 shares of our common stock to a vendor for services. 2. 30,968 shares to two Directors for Board of Director services 3. 4,000,000 shares to Bulat – see Note 3. 4. 10,000 shares sold for $5,000.

9. Services Agreement

On April 16, 2021, we entered into a Services Agreement with Cicero Transact Group, Inc. Under the Agreement, Cicero has agreed to rebuild our website and social media sites and help identify and introduce potential acquisition targets to our Company. Once an acquisition is completed, Cicero has agreed to provide, at their sole discretion, any number of post-acquisition services listed in the Agreement. As consideration for the services, we issued Cicero 1,395,348 shares of our restricted common stock which were vested on the date of the Agreement. We valued the shares at $5,581, based on a valuation of our Company done by an independent third-party, and recorded a general and administrative expense of that amount during the three-month period ended June 30, 2021.

1412

Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

FORWARD-LOOKING STATEMENTS

This Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A) contains forward-looking statements that involve known and unknown risks, significant uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed, or implied, by those forward-looking statements. You can identify forward-looking statements by the use of the words may, will, should, could, expects, plans, anticipates, believes, estimates, predicts, intends, potential, proposed, or continue or the negative of those terms. These statements are only predictions. In evaluating these statements, you should consider various factors which may cause our actual results to differ materially from any forward-looking statements. Although we believe that the exceptions reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. Therefore, actual results may differ materially and adversely from those expressed in any forward-looking statements. We undertake no obligation to revise or update publicly any forward-looking statements for any reason.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

Set forth below are certain of our important accounting policies. For a full explanation of these and other of our important accounting policies, see Note 2 to Notes to the Financial Statements in our Form 10-K filed with the SEC on ~~July~~June 1228, ~~2021~~2022.

Going Concern Considerations

Our financial statements are presented in United States dollars and are prepared using the accrual method of accounting which conforms to US GAAP, which contemplate continuation of our Company as a going concern.

We have generated no revenues to date and have an accumulated deficit of $~~930~~1,~~066~~053,520 as of ~~December~~June 3130, ~~2021~~2022. The continuation of our Company as a going concern is dependent upon the continued financial support from our ~~shareholders~~stockholders, our ability to raise equity or debt financing, and the attainment of profitable operations from our Company’s future business. These factors raise substantial doubt regarding our ability to continue as a going concern. These financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should we be unable to continue as a going concern.

Our Company’s plan of action over the next twelve months is to raise capital.

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 certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods presented. We are required to make judgments and estimates about the effect of matters that are inherently uncertain. Although, we believe our judgments and estimates are appropriate, actual future results may be different; if different assumptions or conditions were to prevail, the results could be materially different from our reported results.

Derivative Financial Instruments

We account for convertible debt with conversion features representing embedded derivative liabilities in accordance with ASC 815, Derivatives and Hedging. ASC 815-15-25-1 requires that embedded derivative instruments be bifurcated and assessed on their issuance date and measured at their fair value for accounting purposes. In determining the appropriate fair value, we use the Black-Scholes option valuation method, resulting in a reduction of the initial carrying amount of the notes as unamortized debt discount. The unamortized discount is amortized over the term of each note using the effective interest method.

Recent Accounting Pronouncements

We review new accounting standards as issued. Although some of these accounting standards issued or effective after the end of our previous fiscal year may be applicable to us, we have not identified any standards that we believe merit further discussion. We believe that none of the new standards will have a significant impact on our financial position, future operations or cash flows.

RESULTS OF OPERATIONS

We have limited operational history. From our inception on July 26, 2013 to ~~December~~June 3130, ~~2021~~2022, we did not generate any revenues. Until such time as we generate revenues, we anticipate we will incur losses.

Three Months Ended ~~December~~June 3130, ~~2021~~2022 Compared to to Three Months Ended ~~December~~June 3130, ~~2020~~2021

Operating Expenses

During the three months ended ~~December~~June 3130, ~~2021~~2022, we incurred operating expenses of $6068,~~010~~007 compared to $~~201~~73,~~980~~567 in the previous year. The ~~2020~~2021 period ~~includes~~contains aan ~~$150,000~~ expense in ~~related to~~ the ~~issuance~~amount of ~~Series~~$5,581 Aresulting ~~Preferred~~from ~~Stock~~our toissuance ~~our~~of ~~CEO~~common ~~and~~stock ~~Director~~under asthe Services Agreement described in Note 58 to the accompanying ~~financial~~ financial statements. There is no such expense in the 2022 period.

Other Income and Expense

Interest expense ~~increased~~ was $~~1,628~~623 higher onin ~~higher~~the ~~levels~~2022 ofperiod ~~debt~~versus 2021. In the ~~2021~~2022 period, we reported derivative income of $3566,~~747~~740 compared to derivative expense of $5314,~~746~~ 165 in the ~~2020~~2021 period, all inrelated ~~relation~~ to our ~~Mambagone~~indebtedness ~~debt~~to Mambagone as explained in Note 75 to the accompanying financial statements. Debt discount amortization in the ~~2021~~2022 period ofwas $41,~~914~~458 ~~was~~compared ~~also related~~ to ~~our~~$40,682 ~~Mambagone~~in ~~indebtedness~~2021. InThis ~~the~~was ~~2021 period, we~~ also ~~reported~~related ato ~~gain on~~our ~~extinguishment~~Mambagone ~~of debt of $14,000~~indebtedness.

Net Loss

Our net loss for the three months ended ~~December~~June 3130, ~~2021~~2022 of $5848,~~050~~534 ($0.00 per share) compares to a net loss of $~~259~~133,~~971~~600 ($0.0100 per share) in the previous year.

~~Nine Months Ended December 31, 2021 Compared to Nine Months Ended December 31, 2020~~14

Operating Expenses

During the nine months ended December 31, 2021, we incurred operating expenses of $202,607 compared to $376,300 in the previous year. The 2020 period includes a $150,000 expense related to the issuance of Series A Preferred Stock to our CEO and Director as described in Note 5 to the accompanying financial statements. The 2020 period also contains a $31,000 expense related to the rescinded SMG-Gold transaction as described in Note 3 to the accompanying financial statements. In the 2021 period, professional fees were higher than in 2020 by $18,284.

Other Income and Expense

Interest expense increased $9,553 on higher levels of debt. In the 2021 period, we reported derivative income of $112,651 compared to derivative expense of $53,746 in the 2020 period, all in relation to our Mambagone debt as explained in Note 7 to the accompanying financial statements. Debt discount amortization in the 2021 period of $124,510 was also related to our Mambagone indebtedness. In the 2021 period, we also reported a gain on extinguishment of debt of $14,000.

Net Loss

Our net loss for the nine months ended December 31, 2021 of $218,124 ($0.01 per share) compares to a net loss of $438,150 ($0.01 per share) in the previous year.

LIQUIDITY AND CAPITAL RESOURCES

Since inception we have raised capital through debt financing, advances from related parties and private placements of our common stock. AsOur ~~described~~capital incommitments ~~Note~~for the 1coming to12 ~~the accompanying~~months ~~financial~~consist ~~statements,~~of onadministrative ~~December 9~~expenses, ~~2021~~expenses weassociated ~~executed an MOU~~ with ainvestment ~~Singapore based holding company whose subsidiaries are engaged principally~~ in ~~foreign exchange remittance services. Under the MOU~~companies, ~~our~~and ~~Company~~costs ~~is proposing to acquire 100%~~ of ~~the~~distribution ~~Singapore based company for a purchase price~~ of ~~$80,000,000, consisting of common and preferred stock totaling $70,000,000 and subordinated debt~~ ofour ~~$10,000,000~~securities. ~~The~~We ~~proposed~~estimate ~~acquisition~~that iswe ~~subject~~will tohave ~~due diligence customary~~ to ~~transactions~~incur ofthe ~~this~~following ~~type.~~expenses ~~There~~during ~~can be no assurance that a definitive agreement between~~ the ~~parties~~next to12 ~~the transaction can be reached.~~months:

Notwithstanding what may happen with our proposed acquisition, our capital commitments for the coming 12 months consist of administrative expenses, expenses associated with investment in companies, and costs of distribution of our securities. We estimate that we will have to incur the following expenses during the next 12 months:

Description	Estimated Completion Date ⁽¹⁾	Estimated Expenses ($)
Legal and accounting fees and expenses⁽²⁾	12 months	95,000
Investor relations and capital raising	12 months	125,000
General and administrative expenses	12 months	175,000
Transfer Agent and Edgar Services	12 months	18,000
Total		413,000

Description	Estimated Completion Date (1)	Estimated Expenses ($)
Legal and accounting fees and expenses(2)	12 months	95,000
Investor relations and capital raising	12 months	125,000
General and administrative expenses	12 months	207,000
Transfer Agent and Edgar Services	12 months	18,000
Investment in companies	12 months	600,000
Total		1,045,000

	⁽¹⁾	Budget Items are listed in order of priority.
	⁽²⁾	Includes $45,000 for accounting and auditing.

Since our initial share issuances, our company has been unable to raise significant additional ~~capital~~equity funds, forcing us to rely on ~~debt financing and~~ cash advances ~~from~~and ~~related~~debt ~~parties~~financing to meet operating ~~current and future liabilities over the foreseeable future~~needs. Based on our cash on hand of $~~582~~213 asat ofJune ~~December 31~~30, ~~2021~~2022, we will be required to raise additional funds to execute our current plan of operation. As discussed in Note 5 to the accompanying financial statements, although we have a credit line agreement with Mambagone, S.A de C.V. (“Mambagone”), they are no longer honoring additional required advances under the agreement. At present, we have no 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. In that regard, we will prioritize ~~expenditures~~ expenditures to (in order of priority): (i) maintain our mineral exploration license; and (ii) to conduct our planned exploration activities. We intend to raise the capital that we require through the private placement of our securities or through loans. However, we have not received any financing commitments and there is no guarantee that we will be successful in so doing.

We have no plant or significant equipment to sell, nor are we going to buy any plant or significant equipment during the next 12 months. We do not ~~presently~~ intend to hire any employees at this time.

CASH FLOWS

Operating Activities

During the ~~nine~~three months ended ~~December~~June 3130, ~~2021~~2022, we used cash of $~~98,307~~213 for operating activities compared to $~~222~~63,~~539~~480 during the same period in ~~2020~~2021. The decrease in cash used was mainly attributable to the decrease ~~of $211,399~~ in our net loss, partially offset toby ~~some~~changes ~~extent~~in bynon-cash ~~the~~items, ~~following~~accounts payable and accrued liabilities, and in due to related parties. Significant changes in non-cash items: include derivative income in the 2022 period of $66,740 (compared to derivative expense in 2021 of $14,165) and shares issued for services in the 2021 period of $5,581 (versus zero in 2022). In addition, 2022 contained an increase in accounts payable and accrued expenses of $5,211 and an increase in due to related party liabilities of $57,950.

1. In the 2020 period, we had non-cash items for shares issued as an acquisition deposit and shares issued for services totaling $167,388 compared to $5,581 in the 2021 period. 2. In the 2021 period we had derivative income of $112,651 compared to derivative expense of $53,746 in 2020. 3. In the 2021 period we recorded debt discount amortization of $124,510 versus zero in 2020. 4. In the 2021 period we recorded a gain on extinguishment of debt of $14,000.

In 2021 there was also a change in accounts payable, accrued liabilities and due to related parties totaling $116,095, a significant part of which relates to shares issued in settlement of debt discussed in Notes 5 and 8 to the accompanying financial statements.

Investing Activities

There were no investing activities induring the ~~2021~~three-month ~~period.~~periods ~~During the nine months~~ ended ~~December~~June 3130, ~~2020~~2022 weand ~~had capital expenditures of $1,123~~2021.

Financing Activities

There were no financing activities induring the ~~2021~~three-month ~~period.~~periods ~~During the nine months~~ ended ~~December~~June 3130, ~~2020,~~2022 ~~we received $5,000 from the sale of 10,000 shares of our common stock~~ and ~~$240,600 in proceeds from the issuance of notes payable~~2021.

Trends

~~Other~~We ~~than~~have ~~potential~~no ~~impacts~~revenue generating operations and have no prospects of ~~Covid-19,~~generating any revenue without making some form of acquisition. Otherwise we are unaware of any known trends, events or uncertainties that have had, or are reasonably likely to have, a material impact on our business or income, either in the long term or short term~~, other than as described in this section or our in Item 1A of our Form 10-K (Risk Factors) filed July 12, 2021~~.

Off-Balance Sheet Arrangements

We have no significant 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 capital resources that are material to our stockholders.

Inflation

The effect of inflation on our revenues and operating results has not been significant.

Item 3.

Quantitative and Qualitative Disclosure about Market Risk

None

Item 4.

Controls and Procedures

Evaluation of Disclosure Controls and Procedures

As of the end of the period covered by this report, we carried out an evaluation, under the supervision and with the participation of our Principal Executive Officer and Principal Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures. Based on the evaluation, both the Principal Executive Officer and the Principal Financial Officer concluded that our disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) promulgated under the Securities Exchange Act of 1934, were not effective as of ~~December~~June 3130, ~~2021~~ 2022.

Internal Control over Financial Reporting

There was no change in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) promulgated under the Securities Act of 1934) that materially affected, or is reasonably likely to materially affect, such internal control over financial reporting during the quarter ended ~~December~~June 3130, ~~2021~~2022.

1916

Part II — OTHER INFORMATION

Item 1.

Legal Proceedings

None.

Item 1A.

Risk Factors

In addition to other information set forth in this report, you should carefully consider the risk factors described in our Registration Statement on Form S-1, which was declared effective on November 12, 2014. Those factors could materially affect our business, financial condition or future results. In addition, risks and uncertainties not currently known to us or that we currently deem to be immaterial may also have a materially adverse effect on our business, financial condition and/or operating results.

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

None.

Item 3.

Defaults Upon Senior Securities

None.

Item 4.	(Removed and Reserved)

Item 5.	Other Information

None.

Item 6.

Exhibits

Exhibit Number	Ref	Description of Document
31.1		Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2		Certification of Principal Financial and Accounting Officer pursuant to Section 302 of the Sarbanes- Oxley Act of 2002.
32.1		Certification of Principal Executive Officer pursuant to 18 U.S.C. Section 1350 as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002.
32.2		Certification of Principal Financial Officer pursuant to 18 U.S.C. Section 1350 as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002.
101	*	The following financial statements from the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, ~~2021~~2022, formatted in inline XBRL, include: (i) Condensed ~~Consolidated~~ Balance Sheets, (ii) Condensed ~~Consolidated~~ Statements of Operations, (iii) Condensed ~~Consolidated~~ Statements of Stockholders’ ~~Equity~~Deficit, (iv) Condensed ~~Consolidated~~ Statements of Cash Flows and (v) the Notes to the Condensed ~~Consolidated~~ Financial Statements.
104		Cover Page Interactive Data File (formatted in IXBRL, and included in exhibit 101).

* Pursuant to Rule 406T of Regulation S-T, these interactive data files are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, are deemed not filed for purposes of Section 18 of the Securities and Exchange Act of 1934, as amended, and otherwise are not subject to liability under those sections.

2017

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.

	PALAYAN RESOURCES, INC.
Date: February 14, 2022	By:	/s/ James Jenkins
Date: August 12, 2022	By:	/s/ James Jenkins
		James Jenkins
		President
		(Principal Executive Officer; Principal Financial Officer)

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Filing Compare · Palayan Resources, Inc.