# EDGAR Filing Document

**Accession Number:** 0001712949
**File Stem:** 0001104659-23-010080
**Filing Date:** 2023-2
**Character Count:** 24603
**Document Hash:** 293039e698f530955e0f8969e7c9a8aa
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001104659-23-010080.hdr.sgml**: 20230203

**ACCESSION NUMBER**: 0001104659-23-010080

**CONFORMED SUBMISSION TYPE**: 1-SA

**PUBLIC DOCUMENT COUNT**: 1

**CONFORMED PERIOD OF REPORT**: 20221031

**FILED AS OF DATE**: 20230203

**DATE AS OF CHANGE**: 20230202

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Red Mountain Ventures Limited Partnership
- **CENTRAL INDEX KEY:** 0001712949
- **STANDARD INDUSTRIAL CLASSIFICATION:** HOTELS, ROOMING HOUSE, CAMPS & OTHER LODGING PLACES [7000]
- **IRS NUMBER:** 000000000
- **STATE OF INCORPORATION:** A1

**FILING VALUES:**
- **FORM TYPE:** 1-SA
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 24R-00126
- **FILM NUMBER:** 23583459

**BUSINESS ADDRESS:**
- **STREET 1:** 1938-C COLUMBIA AVENUE, BOX 670
- **CITY:** ROSLAND
- **STATE:** A1
- **ZIP:** V0G 1Y0
- **BUSINESS PHONE:** (250) 368-1571

**MAIL ADDRESS:**
- **STREET 1:** 1938-C COLUMBIA AVENUE, BOX 670
- **CITY:** ROSLAND
- **STATE:** A1
- **ZIP:** V0G 1Y0

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 1-SA**

**SEMIANNUAL REPORT**

**SEMIANNUAL REPORT PURSUANT TO**

**REGULATION A OF THE SECURITIES ACT OF 1933**

**For the Semiannual Period Ended October 31, 2022**

**RED MOUNTAIN VENTURES LIMITED PARTNERSHIP**

*(Exact name of registrant as specified in its charter)*

Commission File Number: 024-10729

---

| | |
|:---|:---|
| **Rossland, British Columbia** | **45-4862460** |
| (State or other jurisdiction of<br> incorporation or organization) | (I.R.S. Employer<br> Identification No.) |
| 1938-C Columbia Avenue, Box 670,<br> Rossland, British Columbia, Canada, V0G 1Y0<br>(Address of principal executive offices) | **20009**<br> (Zip Code) |

---

(250) 362-7384

Registrant's telephone number, including area code

**Class D USD$ Series Limited Partnership Units**

(Title of each class of securities issued pursuant to Regulation A)

**PART II**

**INFORMATION TO BE INCLUDED IN REPORT**

**Item 1. Management's Discussion and Analysis of Financial Condition and Results of Operations**

The following discussion of our financial condition and results of operations should be read in conjunction with the financial statements and the notes thereto included elsewhere in this Report. Our fiscal year end is April 30th. Our financial statements are prepared in accordance with International Financial Reporting Standards, which may differ from US Generally Accepted Accounting Principles.

**Overview**

We earn our revenues in five principal categories. In order of their contribution, they are: lift tickets and season passes, food and beverage sales, retail sales and equipment rentals, property management and real estate sales. Our property management revenues are derived from property management services rendered to the owners of condominiums at the base of Red Mountain Resort.

Our single largest source of revenue is the sale of lift tickets (including season passes) which represented approximately 89.6% and 86.7% of total revenues for the six month periods ended October 31, 2021 and 2022, respectively. Lift ticket revenue is driven by the volume of lift tickets and season passes sold and their pricing. Most season pass products are sold before the start of the ski season.

The cost structure of our operations has a significant fixed component with variable expenses including, but not limited to, retail and food and beverage cost of sales, labor and utilities. As such, profit margins can fluctuate based on the level of revenues.

The timing and duration of favorable weather conditions impact our revenues in regard to the timing and number of skier visits, but may be more impacted by willingness to travel subsequent to the COVID-19 pandemic, adverse economic conditions, global outbreaks of infectious diseases such as COVID-19, the global geopolitical climate or weather conditions in the immediately preceding ski season. Red Mountain Resort has limited snowmaking capabilities and in the event that the natural snowfall is insufficient may be able to open a limited number of ski runs. Cold weather, however, is essential to a successful ski season. There is no way to predict weather conditions. Season passes are sold prior to the start of the ski season, in part, to mitigate negative effects that unfavorable weather may have on our revenues.

**Recent Trends, Risks and Uncertainties**

Together with the risk factors included in our Form 1-A, we have identified the following important factors (as well as risks and uncertainties associated with such factor) that could impact our future financial performance or condition:

• The global outbreak of COVID-19,
led to global travel restrictions and other adverse global economic impacts including reduced consumer confidence, an increase in unemployment
rates and an overall decline in the global and local economies. Although we are uncertain as to the ultimate severity and duration
of the COVID-19 pandemic and the impact it may have on our business, we saw a significant negative change in performance as a result
of the pandemic and expect our future performance will also be negatively impacted should there be a resurgence of the pandemic and/or
a prolonged recession. We cannot predict the ultimate impact that the global economic uncertainty as a result of the COVID-19 pandemic
on overall travel and leisure spending or more specifically, on our guest visitation, guest spending or other related trends will have
on the upcoming 2022/2023 ski season.

• The North American economy may
be impacted by economic challenges in North America or declining or slowing growth in economies outside of North America, accompanied
by devaluation of currencies, rising inflation, trade tariffs and lower commodity prices.

**Results of Operations**

*Revenues*

Our overall revenue for the six-month period ended October 31, 2022, was $2,790,160, compared to $2,629,218, for the same period during 2021.

Lift ticket and season pass revenue for the six-month period ended October 31, 2022, was $2,418,994, compared to $2,354,754 for the same period during 2021.

Food and beverage revenue for the six-month period ended October 31, 2022, was $114,040, compared to $21,428, for the same period during 2021. The increase in food and beverage revenue is primarily as a result of an increase in off-season business.

Retail sales and equipment rental revenue for the six-month period ended October 31, 2022, was $2,493, compared to $6,517, for the same period during 2021.

Property management revenue for the six-month period ended October 31, 2022, was $98,035, compared to $46,509, for the same period during 2021. The increase in property management revenue is primarily as a result of an increase in off-season business.

Other revenue for the six-month period ended October 31, 2022, which in comprised of day care services and facilities rentals, was $156,598, compared to $200,010, for the same period during 2021. The decrease in other revenue is not significant.

*Cost of Goods Sold*

 

Cost of goods sold for the six-month period ended October 31, 2022, was $37,265, compared to $1,125 for the same period during 2020. The increase is primarily attributable to an increase in off-season business.

*Gross Profits*

As a result of the foregoing, gross profit was $2,752,895 for the six-month period ended October 31, 2022, compared to $2,628,093 for the same period during 2021.

*Operating Expenses*

Our overall operating expenses for the six-month period ended October 31, 2022, were $3,896,937, compared to $2,683,287, for the same period during 2021. The increase in expenses was primarily due to an increase in general and administrative expenses.

Labor and labor related expenses for the six-month period ended October 31, 2022, were $1,079,419, compared to $989,053, for the same period during 2021.

Repair and maintenance expense for the six-month period ended October 31, 2022, was $409,930, compared to $373,438for the same period during 2021.

Depreciation expense for the six-month period ended October 31, 2022, was $153,609, compared to $90,956 for the same period during 2021.

Selling and marketing expenses for the six-month period ended October 31, 2022, were $141,485, compared to $114,751 for the same period during 2021.

Equipment rental and lease expenses for the six-month period ended October 31, 2022, were $64,659, compared to $80,110, for the same period during 2021.

Property taxes for the six-month period ended October 31, 2022, were $120,841, compared to $117,917, for the same period during 2021.

General and administrative expenses for the six-month period ended October 31, 2021, were $1,926,994, compared to $917,062 for the same period during 2020. The increase is primarily attributable to an increase in off-season business activities.

 

*Income (Loss) from Operations*

Net loss from operations for the six-month period ended October 31, 2022, was $(1,144,042), compared to a net income from operations of $(55,194), for the same period during 2021. The increase in losses is primarily attributable to an increase in general and administrative expenses.

*Other Expenses*

Interest expense for the six-month period ended October 31, 2022, was $(191,014), compared to $(188,372) for the same period during 2021.

*Net Loss*

 

Net income for the six-month period ended October 31, 2022, was $(1,335,057), compared to a net loss of $(243,566), for the same period during 2021. The increase in losses is primarily attributable to an increase in general and administrative expenses. Comprehensive net income after foreign currency translation adjustments were $(1,184,867) for the six-month period ended October 31, 2022, and $(1,148,575), for the six-month period ended October 31, 2021.

**Liquidity and Capital Resources**

Current assets as of October 31, 2022, were $1,323,060, compared to $1,077,736, as of April 30, 2022. Current assets include cash and cash equivalents, restricted cash, accounts receivables, prepaid expenses and other current assets and inventory. The increase in current assets is primarily a result of a decrease in accounts receivables from $547,170 as of April 30, 2022, to $176,907 as of October 31, 2022, and an increase in cash from $0 as of April 30, 2022, to $581,219 as of October 31, 2022.

 ****

***Principal Sources of Cash***

Available cash is the highest in the fourth quarter primarily due to the seasonality of our resort business and the sale of season passes for the following ski season. We had $581,219 in cash and cash equivalents as of October 31, 2022, compared to $0 as of April 30, 2022.

We currently anticipate that cash flow from operations will continue to provide a significant source of our operating needs. Subject to the repercussions of the COVID-19 pandemic and governmental restrictions, including, but not limited to, travel restrictions, we expect that our liquidity needs for the near term and the next fiscal year will be met by continued use of operating cash flows (primarily those generated in our third and fourth fiscal quarters).

***Significant Uses of Cash***

Our cash uses currently include operating expenditures and capital expenditures for assets to be used in operations. We have historically invested significant cash in capital expenditures for our resort operations and expect to continue to invest in the future.

**Debt and Credit Facilities**

The Bank of Montreal (the "**BMO**") has provided an overdraft credit facility to Red Resort Limited Partnership ("**RRLP**") in the principal amount of CDN$2,152,000, bearing interest at prime plus 1.5%, and secured by a vacant lot directly below the Morning Star development. When RRLP's operating bank account balance reaches zero, the BMO Line of Credit Agreement allows RRLP to draw checks or make withdrawals of up to CDN$2,152,000. Interest is calculated and charged by BMO in any month when RRLP makes use of this line of credit (or overdraft). The interest charged to the operating account is dependent upon the amount the account has gone into overdraft and the length of time the account is in an overdraft position. Repayments of principal are made at the discretion of RRLP. The credit facility is to be used for general working capital. As of October 31, 2022, a balance of CDN$1,756,675 in principal was outstanding under this credit facility, with no interest accrued.

RRLP is a party to two fixed rate term loan agreements with BMO that are guaranteed by Leroi Acquisition Corp., RMR Acquisition Corp and Red Property Management Ltd. The first loan is for CDN$4,200,000, has a 24-month term, and bears interest at 2.89%. It requires monthly payments of interest and principal payments of about CDN$29,000 in December, January, February, March, April and May of each year. The loan was used, in part, to pay down previously existing loans. The second loan is for CDN$1,600,000, has a 36-month term, and bears interest at 3.17%. It requires monthly payments of interest and principal payments of about CDN$30,000 in December, January, February, March, April and May of each year. As of October 31, 2022, the outstanding principal balance of the first loan was CDN$3,578,233, and the outstanding principal balance of the second loan was CDN$967,033.

As of October 31, 2022, an aggregate of CDN$6,511,754 in principal was due and outstanding to Mr. Busby under various loans that were advanced between January 2020 and April 2022, which accrue interest at a rate of 6% per annum. Interest of CAD$247,774 was paid in April 2022.

As of October 31, 2022, we had CAD$24,019 outstanding under a loan to RMR from Community Futures Development Corporation of Greater Trail bearing interest at the prime rate plus 4%, and maturing in June of 2025.

As of October 31, 2022, we had a loan of CAD$1,500,000 due to J. McLeod accruing no interest. This loan will be converted to equity in Hannah Creek LP as the development of The Crescent condominium project proceeds.

As of October 31, 2022, we had a loan of CAD$6,200,000 due to Busby Trust accruing no interest. This loan will convert to equity in Hannah Creek LP as the development of The Crescent condominium project proceeds

**Item 2. Other Information**

None.

**Item 3. Financial Statements**

The accompanying semiannual consolidated financial statements are unaudited and have been prepared in accordance with the instructions to Form 1-SA. Therefore, they do not include all information and footnotes necessary for a complete presentation of financial position, results of operations, cash flows, and stockholders' equity in conformity with accounting principles generally accepted in the United States of America. Except as disclosed herein, there has been no material change in the information disclosed in the notes to the consolidated financial statements included in the Company's Annual Report on Form 1-K for the year ended April 30, 2020. In the opinion of management, all adjustments considered necessary for a fair presentation of the results of operations and financial position have been included, and all such adjustments are of a normal recurring nature. Operating results for the six months ended October 31, 2022, are not necessarily indicative of the results that can be expected for the year ending April 30, 2023.

**Item 4. Exhibits**

None.

**SIGNATURES**

Pursuant to the requirements of Regulation A, the issuer has caused this report to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Rossland, British Columbia, on February 2, 2023.

**RED MOUNTAIN VENTURES LIMITED PARTNERSHIP**

**BY: RED MOUNTAIN VENTURES G.P. LTD.**

**ITS: GENERAL PARTNER**

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| | |
|:---|:---|
| By: | /s/ Howard Katkov |
|  | Howard Katkov, Chief Executive Officer, |
|  | President and Director |
|  | Date: February 2, 2023 |
| By: | /s/ Kevin Magnall |
|  | Kevin Magnall, Principal Financial Officer, |
|  | Principal Accounting Officer and |
|  | Director |
|  | Date: February 2, 2023 |

---

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| | |
|:---|:---|
| By | /s/ Donald J. Thompson |
|  | Donald J. Thompson Vice President Resort Planning and Development and Director |
|  | Date: February 2, 2023 |

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RED MOUNTAIN VENTURES LIMITED PARTNERSHIP

CONSOLIDATED BALANCE SHEETS

OCTOBER 31, 2022 AND APRIL 30, 2022

(US $)

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| | | |
|:---|:---|:---|
| ASSETS | ASSETS | ASSETS |
|  | October 31, 2022 | April 30, 2022 |
|  | (Unaudited) |  |
| Current assets |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | $581219 | $- |
| &nbsp;&nbsp;&nbsp;Restricted cash | 56667 | 21268 |
| &nbsp;&nbsp;&nbsp;Accounts receivable | 176907 | 547170 |
| &nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | 98097 | 104499 |
| &nbsp;&nbsp;&nbsp;Inventory | 410170 | 404799 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 1323060 | 1077736 |
| Property, plant and equipment, net | 12895917 | 13162077 |
| Property under development | 13174751 | 10770713 |
| Other assets | 302507 | 321359 |
| Goodwill | 51713 | 54935 |
| Total assets | $27747948 | $25386820 |
| LIABILITIES AND PARTNERSHIP INTEREST |  |  |
| Current liabilities |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable and accrued expenses | $418317 | $871669 |
| &nbsp;&nbsp;&nbsp;Deferred revenue | 201036 | 1810022 |
| &nbsp;&nbsp;&nbsp;Current portion of long-term debt | 3582927 | 384930 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 4202280 | 3066621 |
| Long-term liabilities |  |  |
| &nbsp;&nbsp;&nbsp;Other long-term debt | 8898458 | 9489399 |
| &nbsp;&nbsp;&nbsp;Due to joint venture | 444750 | 384334 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total long-term liabilities | 9343208 | 9873733 |
| Total liabilities | 13545488 | 12940354 |
| Commitments and contingencies |  |  |
| Partnership interest |  |  |
| &nbsp;&nbsp;&nbsp;Initial partnership interest | 2657 | 2657 |
| &nbsp;&nbsp;&nbsp;Class A units contribution | 1109 | 1109 |
| &nbsp;&nbsp;&nbsp;Class B units contribution | 13083607 | 13083607 |
| &nbsp;&nbsp;&nbsp;Class C units contribution | 20746938 | 20746938 |
| &nbsp;&nbsp;&nbsp;Class D units contribution | 1916948 | 1916948 |
| &nbsp;&nbsp;&nbsp;Partner contribution | 2986739 |  |
| &nbsp;&nbsp;&nbsp;Partner distributions | (1416241) | (1416241) |
| &nbsp;&nbsp;&nbsp;Other comprehensive income | 3627053 | 3476863 |
| &nbsp;&nbsp;&nbsp;Accumulated deficit | (31459625) | (30124568) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total partnership interest attributable to partnership | 9489185 | 7687313 |
| &nbsp;&nbsp;&nbsp;Non-controlling interest | 4713275 | 4759153 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total partnership interest | 14202460 | 12446466 |
| Total liabilities and partnership interest | $27747948 | $25386820 |

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RED MOUNTAIN VENTURES LIMITED PARTNERSHIP

CONSOLIDATED STATEMENTS OF OPERATIONS

AND OTHER COMPREHENSIVE INCOME

(US $)

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| | | |
|:---|:---|:---|
|  | Six Months Ended<br>October 31, 2022 | Six Months Ended<br>October 31, 2021 |
|  | (Unaudited) | (Unaudited) |
| Operating revenue |  |  |
| &nbsp;&nbsp;&nbsp;Lift revenue | $2418994 | $2354754 |
| &nbsp;&nbsp;&nbsp;Retail and rental | 2493 | 6517 |
| &nbsp;&nbsp;&nbsp;Property management | 98035 | 46509 |
| &nbsp;&nbsp;&nbsp;Food and beverage | 114040 | 21428 |
| &nbsp;&nbsp;&nbsp;Other revenue | 156598 | 200010 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating revenue | 2790160 | 2629218 |
| Cost of good sold | 37265 | 1125 |
| Gross profit | 2752895 | 2628093 |
| Operating expenses |  |  |
| &nbsp;&nbsp;&nbsp;Wages and benefits | 1079419 | 989053 |
| &nbsp;&nbsp;&nbsp;Repairs and maintenance | 409930 | 373438 |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 153609 | 90956 |
| &nbsp;&nbsp;&nbsp;Selling and marketing | 141485 | 114751 |
| &nbsp;&nbsp;&nbsp;Equipment rental and leases | 64659 | 80110 |
| &nbsp;&nbsp;&nbsp;Property taxes | 120841 | 117917 |
| &nbsp;&nbsp;&nbsp;General and administration | 1926994 | 917062 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 3896937 | 2683287 |
| Operating income | (1144042) | (55194) |
| Other income (expense) |  |  |
| &nbsp;&nbsp;&nbsp;Interest expense including foreign exchange adjustments | (191014) | (188372) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other income (expense) | (191014) | (188372) |
| Net loss | (1335057) | (243566) |
| Net loss attributable to partnership | $(1335057) | $(243566) |
| Comprehensive loss |  |  |
| &nbsp;&nbsp;&nbsp;Net loss | (1335057) | (243566) |
| &nbsp;&nbsp;&nbsp;Foreign currency translation adjustment | 150190 | (905009) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Comprehensive loss | (1184867) | (1148575) |
| Comprehensive loss attributable to partnership | $(1184867) | $(1148575) |

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RED MOUNTAIN VENTURES LIMITED PARTNERSHIP

STATEMENTS OF CHANGES IN LIMITED PARTNERSHIP INTEREST

FOR THE PERIOD ENDED OCTOBER 31, 2022

(US $)

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | Initial<br>Partnership<br>Interest |<br>Non-controlling<br>Interest | Partner<br>Contributions/<br>(Distributions) | Other<br>Comprehensive<br>Income |<br>Accumulated<br>Deficit |<br>Total |
| Balance April 30, 2021 | $2657 | $4854803 | $34332361 | $4035709 | $(26238683) | $16986847 |
| Foreign currency translation loss |  |  |  | (558846) |  | (558846) |
| Net loss | - | (95650) | - | - | (3885885) | (3981535) |
| Balance April 30, 2022 | $2657 | $4759153 | $34332361 | $3476863 | $(30124568) | $12446466 |
| Partners' contribution |  |  | 2986739 |  |  | 2986739 |
| Foreign currency translation gain |  |  |  | 150190 |  | 150190 |
| Net loss | - | (45878) | - | - | (1335057) | (1380935) |
| Balance October 31, 2022 | $2657 | $4713275 | $37319100 | $3627053 | $(31459625) | $14202460 |

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RED MOUNTAIN VENTURES LIMITED PARTNERSHIP

CONSOLIDATED STATEMENTS OF CASH FLOWS

(US$)

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| | | |
|:---|:---|:---|
|  | Six Months Ended<br>October 31, 2022 | Six Months Ended<br>October 31, 2021 |
| Cash flows from operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;Net income (loss) | $(1335057) | $(243566) |
| &nbsp;&nbsp;&nbsp;Adjustments to reconcile net income (loss) to |  |  |
| &nbsp;&nbsp;&nbsp;net cash provided by (used in) operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 153609 | 90956 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expense | 191014 | 188372 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable | 352785 | 596701 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventory | (30378) | (17144) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses | 283 | (29001) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and accrued expenses | (419608) | 526930 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue | (1567781) | (1676685) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other assets | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash generated from operations | (2655133) | (563437) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest paid | (191014) | (188372) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in operating activities | (2846147) | (751809) |
| Cash flows used in investing activities: |  |  |
| &nbsp;&nbsp;&nbsp;Purchase of fixed assets and property under development | (3848628) | (1045490) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in investing activities | (3848628) | (1045490) |
| Cash flows from financing activities: |  |  |
| &nbsp;&nbsp;&nbsp;Change in restricted cash | 35399 | (283) |
| &nbsp;&nbsp;&nbsp;Proceeds from long-term borrowings | 3401524 | 1824093 |
| &nbsp;&nbsp;&nbsp;Payments on long-term borrowings | (77429) | (66887) |
| &nbsp;&nbsp;&nbsp;Contributions from stockholder | 3115879 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by financing activities | 6475373 | 1756923 |
| Net change in cash | (219402) | (40376) |
| Cash balance as of May 1 | - | - |
| Foreign exchaange translation | 800621 | 40376 |
| Cash balance as of October 31 | $581219 | $- |
| Supplemental disclosure of non-cash financing activities: |  |  |
| &nbsp;&nbsp;&nbsp;Conversion of debt to equity | $- | $- |
| &nbsp;&nbsp;&nbsp;Foreign currency translation adjustments | $800621 | $40376 |

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