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ASTA HOLDINGS, CORP. - 10-Q - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION

June 16, 2014



GENERAL

ASTA HOLDINGS, CORP. ("ASTA", "the Company", "our" or "we") was incorporated under the laws of the State of Nevada on June 12, 2013. Our registration statement has been filed with the Securities and Exchange Commission on December 31, 2013 and was declared effective on March 31, 2014.

CURRENT BUSINESS OPERATIONS

Asta Holdings, Corp. is a Russia based corporation that operates a business in yacht maintenance in Russia.

We are a development stage company and we have just recently started our operations. To date, our business operations have been limited to primarily, the development of a business plan, the completion of private placements for the offer and sale of our common stock, discussing the offers of yacht maintenance services with potential customers, and the signing of the service agreement with Inturia, Ltd., a private Russian company. As of April 30, 2014 revenue of $2,000 was recognized pursuant to a signed service agreement.

12 | Page RESULTS OF OPERATIONS



We are a development stage company with limited operations since our inception on June 12, 2013 to April 30, 2014. As of April 30, 2014, we had total assets of $15,591 and total liabilities of $100. Since our inception to April 30, 2014, we have accumulated a deficit of $13,809. We anticipate that we will continue to incur substantial losses in the next 12 months. Our financial statements have been prepared assuming that we will continue as a going concern.

We expect we will require additional capital to meet our long term operating requirements. We expect to raise additional capital through, among other things, the sale of equity or debt securities.

Three and Nine Month Periods Ended April 30, 2014

Revenue

During the three and nine months ended April 30, 20134 we recognized revenue of $2,000.

Operating Expenses



During the three month and nine month periods ended April 30, 2014, we incurred

general and administrative expenses and professional fees of $8,347 and $15,478 respectively. General and administrative expenses incurred generally related to corporate overhead, financial and administrative contracted services, such as legal and accounting, developmental costs, and marketing expenses

Net Loss

Our net loss for the three month and nine month periods ended April 30, 2014 was $6,347 and $$13,478 respectively due to the factors discussed above.

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LIQUIDITY AND CAPITAL RESOURCES

As of April 30, 2014

As at April 30, 2014 our current assets were $15,591 compared to $7,594 in current assets at July 31, 2013. As at April 30, 2014, our current liabilities were $100 compared to $425 in current liabilities at July 31, 2013.

Stockholders' equity increased from $7,169 as of July 31, 2013 to $15,491 as of April 30, 2014.

Cash Flows from Operating Activities

We have not generated positive cash flows from operating activities. For the nine month period ended April 30, 2014, net cash flows used in operating activities was $13,803. We incurred a net loss of $13,478 and paid off $325 in accounts payable.

Cash Flows from Investing Activities

We neither used nor generated cash flow from investing activities during the nine months ended April 30, 2014.

Cash Flows from Financing Activities

We have financed our operations primarily from the sale of shares of our common stock. For the nine month period ended April 30, 2014, net cash flows from financing activities was $21,800 received from the proceeds from the sale of shares of our common stock.

PLAN OF OPERATION AND FUNDING

We expect that working capital requirements will continue to be funded through a combination of our existing funds and further issuances of securities. Our working capital requirements are expected to increase in line with the growth of our business.

Existing working capital, further advances and debt instruments, and anticipated cash flow are expected to be adequate to fund our operations over the next twelve months. We have no lines of credit or other bank financing arrangements. Generally, we have financed operations to date through the proceeds of the private placement of equity and debt instruments. In connection with our business plan, management anticipates additional increases in operating expenses and capital expenditures relating to: (i) acquisition of inventory; (ii) developmental expenses associated with a start-up business; and (iii) marketing expenses. We intend to finance these expenses with further issuances of securities, and debt issuances. Thereafter, we expect we will need to raise additional capital and generate revenues to meet long-term operating requirements. Additional issuances of equity or convertible debt securities will result in dilution to our current shareholders. Further, such securities might have rights, preferences or privileges senior to our common stock. Additional financing may not be available upon acceptable terms, or at all. If adequate funds are not available or are not available on acceptable terms, we may not be able to take advantage of prospective new business endeavors or opportunities, which could significantly and materially restrict our business operations.

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OFF-BALANCE SHEET ARRANGEMENTS

As of the date of this Quarterly Report, we do not have any 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 are material to investors.

GOING CONCERN

The independent auditors' report accompanying our July 31, 2014 financial statements contained an explanatory paragraph expressing substantial doubt about our ability to continue as a going concern. The financial statements have been prepared "assuming that we will continue as a going concern," which contemplates that we will realize our assets and satisfy our liabilities and commitments in the ordinary course of business.


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Source: Edgar Glimpses


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