DIAMANTE MINERALS, INC.

The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the liquidation of liabilities in the normal course of business. During the nine months ended April 30, 2020, the Company incurred a net loss of $217,903. As of April 30, 2020, the Company had an accumulated deficit of $12,570,985 and has earned no revenues since inception and was not engaged in an active business. In order to continue as a going concern, the Company will need, among other things, additional capital resources. In addition, convertible notes in the principal amount of $500,000, which are held by the Company’s sole director and officer have matured as to $350,000 at April 30, 2020 and the balance is due on various dates through June 1, 2020.  The Company does not presently have the funds to pay these notes.  Although management plans to seek to raise necessary funding through equity financing arrangements, any such financing may be insufficient to fund its capital expenditures, working capital and other cash requirements for the year ended July 31, 2020. However, until the Company engages in an active business or makes an acquisition the Company is not likely to be able to raise any significant debt or equity financing.

Interest of 5% is payable annually until the settlement date. The note is currently in default and default interest rate is 12 % per annum. No interest was paid during the nine months ended April 30, 2020.

Subsequent to April 30, 2020, convertible notes in the principal amount of $150,000 matured, and, at June 1, 2020, the total principal amount of convertible notes described in Note 6 had matured.  

The cash flow used in operating activities for the nine months ended April 30, 2020 reflects our net loss of $217,903, increased by accrued interest and accretion on convertible notes of $183,074, and increases in accounts payable and accrued liabilities of $6,394 and due to related parties of $27,700. The cash flow used in operating activities for the nine months ended April 30, 2019 reflects the net loss from continuing operations of $261,806, increased by accrued interest and accretion on convertible notes of $190,839 and an increases in accounts payable and accrued liabilities of $34,471and decreased by an increase in prepaid expenses of $4,350.

Our financial statements have been prepared assuming that we will continue as a going concern, which contemplates the realization of assets and the liquidation of liabilities in the normal course of business. During the nine months ended April 30, 2020, we incurred a net loss of $217,903. As of April 30, 2020, we had an accumulated deficit of $12,570,985, we had earned no revenues since inception and we were not engaged in an active business. In order to continue as a going concern, we will need, among other things, additional capital resources. In addition, convertible notes in the principal amount of $500,000, which are held by our sole director and officer, have matured as to $350,000 at April 30, 2020 and the balance was due June 1, 2020. We do not presently have the funds to pay these notes. Although we plan to seek to raise funding through equity financing arrangements, any such financing may be insufficient to fund our capital expenditures, working capital and other cash requirements for the year ended July 31, 2020. However, until we engage in an active business or make an acquisition, we are not likely to be able to raise any significant debt or equity financing.