EXCELLERANT, INC. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL POSITION AND OPERATING RESULTS (Form 10-K)

The following discussion should be read in conjunction with our consolidated financial statements, including the accompanying notes, appearing elsewhere in this annual report. The following discussion contains forward-looking statements which reflect our plans, estimates and beliefs. Our actual results could differ materially from those discussed in forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those discussed below and elsewhere in this annual report. Our audited consolidated financial statements are presented in United States Dollars and are prepared in accordance with US generally accepted accounting principles.

Results of Operations

The following summary of our operations should be read in conjunction with our audited financial statements for the year ended. September 30, 2021 and 2020.

We have not earned any income since our inception through September 30, 2021.

Year ended September 30, 2021 compared to the closed financial year September 30, 2020

                                Year Ended
                               September 30,                Changes
                            2021          2020         Amount         %

Operating Expenses $ (43,632) $ (21,844) $ (21,788) 100% Other income (expenses) 29,832

             -        29,832        100 %
Net Income (Loss)         $ (13,800 )   $ (21,844 )   $   8,044      (37%)

Our net loss for the year ended September 30, 2021 has been $ 13,800 compared to
$ 21,844 for the year ended September 30, 2020 due to the increase in other income. During the year ended September 30, 2021, we recorded a gain on the extinguishment of the debt resulting from the forgiveness of loans from the former director of the Company of $ 29,832 when he resigned on March 31, 2021.

Liquidity and Capital



Working Capital



                                  As of               As of
                              September 30,       September 30,            Changes
                                  2021                2020            Amount         %

Current Assets               $             -     $        20,745     $ (20,745 )    (100 %)

Current liabilities $ 19,887 $ 26,832 $ (6,945) (26%) Insufficient working capital $ (19,887) $ (6,087) $ (13,800) 227%

Like a September 30, 2021, our Company had no current assets. Like a
September 30, 2020, our company had total assets of $ 20,745 funds held in the escrow account.

Like a September 30, 2021, our company had total current liabilities of $ 19,887
including accounts payable and accrued liabilities of $ 5,952 and the loan of the director of $ 13,935. Like a September 30, 2020, our company had total current liabilities of $ 26,832, which included accounts payable from the consulting fees accrued from the former director of $ 16,000 and former loan manager of
$ 10,832.

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Like a September 30, 2021, our company had a working capital deficit of
$ 19,887 compared to $ 6,087 like a September 30, 2020. The increase in the working capital deficit is mainly due to the cancellation of loans from the former director of $ 29,832 and decrease in funds in the escrow account of $ 20,745.

Cash Flows



                                                Year Ended
                                               September 30,                  Changes
                                            2021          2020         Amount           %

Cash flow used in operating activities $ (34,680) $ (14,344) $ (20 336) 142% Cash flow provided by financing

                                                          (60
activities                                   13,935        35,089       (21,154 )             %)
Net changes in cash                       $ (20,745 )   $  20,745     $ (41,490 )        (200 %)

Cash flow from operating activities

We did not generate positive cash flow from operating activities. During the year ended September 30, 2021, the net cash used in operating activities was $ 34,680
compared to $ 14,344 used during the closed financial year September 30, 2020. Cash flows used in operating activities during the year ended September 30, 2021 includes a net loss of $ 13,800, which was increased by the gain on extinguishment of debt of $ 29,832 and was reduced by an increase in accounts payable and accrued liabilities of $ 5,952 and accounts payable to a related party of $ 3,000. Cash flows used in operating activities during the year ended September 30, 2020
composed of a net loss of $ 21,844 which has been increased by a decrease in accrued liabilities of $ 4,500 and was reduced by an increase in accounts payable and accrued liabilities of $ 12,000.

Cash flow from investing activities

During the year ended September 30, 2021 and 2020, our Company had no investment activity.

Cash flow from financing activities

During the year ended September 30, 2021, the net cash from financing activities was $ 13,935 progress of the director compared to $ 35,089
made up of $ 26,480 the issuance of ordinary shares and $ 8,609 advancement of the director during the closed financial year September 30, 2020.

Operation plan and financing

We anticipate that working capital requirements will continue to be funded by a combination of our existing funds and other issuance of securities. Our working capital requirement is expected to increase as our business grows.

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Existing working capital, other advances and debt instruments, and expected cash flows are expected to be sufficient to fund our operations over the next three months. We do not have any lines of credit or other bank financing arrangements. Generally, we have funded our operations to date with the proceeds of the private placement of equity and debt instruments. As part of our business plan, management anticipates additional increases in operating and capital expenditures related to: (i) the acquisition of inventory; (ii) development expenses associated with starting a business; and (iii) marketing costs. We intend to fund these expenses through further issuance of securities and issuance of debt securities. Going forward, we anticipate that we will need to raise additional capital and generate income to meet long-term operating needs. Additional issuance of shares or convertible debt securities will result in dilution for our current shareholders. In addition, these securities may have rights, preferences or privileges greater than our common shares. Additional financing may not be available on acceptable terms, if at all. If adequate funds are not available or are not available on acceptable terms, we may not be able to take advantage of potential new business efforts or opportunities, which could significantly and materially restrict our business operations. We will need to raise additional funds over the next twelve months to support and expand our operations. We currently do not have a specific plan on how we will secure such funding; however, we expect that the additional financing will take the form of equity financing from the sale of our common shares. We have sought and will continue to seek short-term loans from our directors, although no future arrangements for additional loans have been made. We have no agreement with our administrators regarding these loans. We do not have any arrangements in place for future equity financing.

Off-balance sheet provisions

As of the date of this Annual Report, we have no off-balance sheet arrangements that have or that are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, income or expenses, operating results, cash flow, capital expenditures or capital resources that are important to investors.

Going Concern

The independent auditors’ review report accompanying our September 30, 2021
the financial statements contained an explanatory paragraph expressing substantial doubt as to our ability to continue to operate. The financial statements have been prepared “on the assumption that we will continue to operate”, which anticipates that we will realize our assets and meet our liabilities and commitments in the normal course of our operations.

Contractual Obligations

As a “small reporting company”, we are not required to provide tabular disclosure obligations.

Off-balance sheet provisions

We have no off-balance sheet arrangement that has or is reasonably likely to have a current or future effect on our financial condition, changes in financial condition, income or expenses, results of operations, liquidity, capital expenditures or capital resources that are important to shareholders.

Recent accounting positions

Management has taken into consideration all recent accounting pronouncements issued. The management of our company believes that these recent statements will not have a material impact on our financial statements.

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