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RADIANT CREATIONS GROUP, INC. - 10-K - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION.

June 13, 2014

PLAN OF OPERATION

The Radiant Creations Group, Inc., formerly known as Nova Mining Corporation (the "Company") was incorporated in Nevada on December 29, 2005. From their inception the Company's principal business activity was the acquisition and exploration of mineral resources. On June 20, 2013, following a change of control and subsequent acquisition of an exclusive license agreement, certain assets and processes to innovative technologies in skin protection and enhancement, which consist of various proprietary products including an anti-aging and revitalizing skin cream generally under the "Radiant Creations" label, the Company changed its principal business to the development and marketing of unique and proprietary scientific technologies and cosmetic and over-the-counter personal enhancement products and devices.

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 financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to stockholders.

CRITICAL ACCOUNTING POLICIES



The preparation of financial statements in conformity with United States generally accepted accounting principles requires our management to make estimates and assumptions that affect the reported amount 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 period. Actual results could differ from those estimates. Our management routinely makes judgments and estimates about the effects of matters that are inherently uncertain.

We have identified certain accounting policies, described below, that are most important to the portrayal of our current financial condition and results of operation.

USE OF ESTIMATES



The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make 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 period. Actual results could differ from those estimates.

FINANCING REQUIREMENTS



From December 29, 2005 (Inception) to February 28, 2014, we have suffered cumulative losses in the amount of $(4,820,889). We expect to continue to incur substantial losses as we continue the development of our business. Since our inception, we have funded operations through sales of our product, common stock issuances, related party loans, outside party loans, and the support of creditors in order to meet our strategic objectives. Our management believes that sufficient funding will be available to meet our business objectives, including anticipated cash needs for working capital, and are currently evaluating several financing options, including a public offering of securities. However, we do not have any financing arrangements currently in place and there can be no assurance that we will be able to obtain sufficient financing when needed. As a result of the foregoing, our independent auditors believe there exists substantial doubt about our ability to continue as a going concern.

There is no assurance that we will be able to obtain additional financing if and when required. We anticipate that additional financing may come in the form of sales of additional shares of our common stock which may result in dilution to our current shareholders.

GOING CONCERN QUALIFICATION



Several conditions and events cast substantial doubt about the Company's ability to continue as a going concern. The Company has incurred net losses of approximately $(4,820,889) for the period from December 29, 2005 to February 28, 2014, has limited revenues and requires additional financing in order to finance its business activities on an ongoing basis. The Company's future capital requirements will depend on numerous factors including, but not limited to, executing the company's business and marketing plan and the pursuit of other business opportunities. The Company is actively pursuing alternative financing and has had discussions with various third parties, although no firm commitments have been obtained. In the interim, shareholders of the Company have committed to meeting its minimal operating expenses. Management believes that actions presently being taken to revise the Company's operating and financial requirements provide them with the opportunity to continue as a going concern.

At February 28, 2014, we had $120,875 in cash assets, $1,495,784 in liabilities, and a deficit accumulate of $(4,820,889). See "Liquidity and Capital Resources."

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LIQUIDITY AND CAPITAL RESOURCES

It is the intent of our management, stockholders, and specifically the majority Shareholder, BioDynamic Molecular Technologies, LLC and our three key officers and directors to provide sufficient working capital necessary to support and preserve the integrity of our Company as a corporate entity. However, there is no legal obligation for either the majority Shareholder or our key officers to provide additional future funding. If our management and/or key officers ceases to provide us the needed financing and we fail to identify any alternative sources of funding, there will be substantial doubt about our ability to continue as a "going concern".

We have no current plans, proposals, arrangements or understandings with respect to the sale or issuance of additional securities. As a result, there can be no assurance that sufficient funds will be available to us to enable us to pay the expenses related to such activities.

Regardless of whether or not our cash assets prove to be adequate to meet our operational needs, we may have to compensate providers of services by issuances of our common stock in lieu of cash.

At February 28, 2014, we had $120,875 in cash assets $1,495,784 in liabilities, and a accumulated deficit of $(4,820,889). Our primary source of liquidity has been from sale of our product, issuance of restricted common shares, loans from shareholders and loans from outside parties. As of February 28, 2014, the Company owed $1,463,396 in notes and related interest and $15,650 in advances, loaned to the company.

Net cash used in operating activities was $442,540 during the year ended February 28, 2014.

Net cash used in investing activities was $10,018 during the year ended February 28, 2014.

Net cash provided by financing activities was $564,850 during the year ended February 28, 2014.

Our expenses to date are largely due to operating expenses, professional fees that include accounting and legal fees.

To date, we have had limited revenues and require additional financing in order to finance our business activities on an ongoing basis. Our future capital requirements will depend on numerous factors, including, but not limited to, executing our business and marketing plans and the ability to pursue other business opportunities. We are actively pursuing alternative financing and have had discussions with various third parties, although no firm commitments have been obtained to date. In the interim, shareholders of the Company have agreed to meet our minimal operating expenses. We believe that actions presently being taken to revise our operating and financial requirements provide the Company with the opportunity to continue as a "going concern," although no assurances can be given.

NET LOSS FROM OPERATIONS



The Company had a net loss of $(4,820,889) for the period from inception through February 28, 2014. The Company had net loss of $(3,816,952) for the year ended February 28, 2014 as compared to a net loss of $(466,445) for the year ended February 29, 2013.

CASH FLOW



Our primary source of liquidity has been cash from sale of equity, shareholder loans and loans from outside parties.

WORKING CAPITAL



As of February 29, 2013, the Company had total current assets of $8,583 and total current liabilities of $879,470, resulting in working capital deficit of $(870,887) for the previous year end. As of February 28, 2014, the Company had total current assets of $317,213 and total current liabilities of $765,336, resulting in working capital deficit of $(448,123) for the current year end.

THE YEAR ENDED FEBRUARY 28, 2014 COMPARED TO THE YEAR ENDED FEBRUARY 28, 2013

OPERATION AND ADMINISTRATIVE EXPENSES

Operating expenses increased by $2,409,682, from $385,428 in the year ended February 28, 2013, to $2,795,110 in the year ended February 28, 2014. Operating expenses primarily consist of advertising and marketing, investor relations, merchant processing fees, office administration, staff compensation, executive compensation, professional and regulatory fees and stock compensation expenses.

Advertising and marketing expenses are made up primarily of website and executive summary production, direct marketing costs, customer service, sales commissions and shipping costs. Such fees are paid to third party vendors throughout the year for performing specific tasks and services.

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Investor relations expenses primarily consist of investor awareness expenses, press releases and travel costs. Such fees are paid to third party vendors throughout the year for performing specific tasks and services.

Merchant processing fees primarily consist of fees paid to third party merchant processing companies for processing of our online/internet based sales platform.

Office administration expenses primarily consist of bank fees, express mail and postage costs, insurance, office supply expense and occupation expenses. Such expenses are paid to third party vendors throughout the year for performing specific tasks and services.

Staff compensation expenses primarily consist of compensation to our skilled administrative staff.

Executive compensation expenses primarily consist of compensation to corporate executives. For the year ended February 28, 2014 there has been zero executive compensation paid.

Professional and regulatory fees primarily consist of auditor fees, patent attorney, corporate attorney and SEC attorney fees.

Stock compensation expense is the excess of the fair value of consideration over the assets acquired of $564,628 and was recorded to stock compensation because the entities are related parties. The entities are not under common control; however, the entities share the same CEO and CFO.

COMMON STOCK

We are authorized by our Amended and Restated Articles of Incorporation to issue an aggregate of 100,000,000 shares of capital stock, of which 100,000,000 are shares of common stock, par value $0.00001 per share (the "Common Stock"). As of February 28, 2014, 54,271,336 shares of Common Stock were issued and outstanding and there were 79 shareholders of our Common Stock.

All outstanding shares of Common Stock are of the same class and have equal rights and attributes. The holders of Common Stock are entitled to one vote per share on all matters submitted to a vote of stockholders of the Company. All stockholders are entitled to share equally in dividends, if any, as may be declared from time to time by our Board of Directors out of funds legally available. In the event of liquidation, the holders of our Common Stock are entitled to share ratably in all assets remaining after payment of all liabilities. The stockholders do not have cumulative or preemptive rights. We have not paid any dividends to date, and have no plans to do so in the near future.


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Source: Edgar Glimpses


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