MIGOM GLOBAL CORP. Management’s Discussion and Analysis of Financial Condition and Results of Operations. (form 10-Q)


General

Migom Global Corp. (the “Company”) was incorporated as Alfacourse Inc. in the
State of Nevada on February 29, 2016. On October 9, 2019, as a result of a
private transactions, 5,000,000 shares of common stock (the “Shares”) of the
Company, were transferred from Oleg Jitov to Heritage Equity Fund LP (the
“Purchaser”). As a result, the Purchaser became a 68.35% holder of the voting
rights of the issued and outstanding share capital of the Company on a
fully-diluted basis of the Company, and became the controlling shareholder. In
connection with the transaction, Oleg Jitov released the Company from all debts
owed to him. On October 8, 2019, the existing director and officer resigned.
Accordingly, Oleg Jitov, serving as a director and an officer, ceased to be the
Company’s Chief Executive Officer, Chief Financial Officer, President,
Treasurer, Secretary and a Director. At the effective date of the transfer,
Georgi Parrik consented to act as the new President, CEO, CFO, Treasurer,
Secretary and Chairman of the Board of Directors of the Company. On November 1,
2019
, the Company amended its articles of incorporation change its name to Migom
Global Corp.
The change was made in anticipation of entering into a new line of
business operations which is a new company building synergistic ventures in
international banking, securities brokerage, electronic money distribution as
well as digital assets origination and market making. Our offices are located at
1185 Avenue of the Americas, 3rd Floor, New York, NY 10036.

On January 23, 2020, HRH Prince Maximillian Habsburg was appointed as Chairman
of the Board of Directors of the Company. Also, on January 23, 2020, Mr. Thomas
Schaetti
and Mr. Stefan Lenhart were appointed as members of the Board of
Directors of the Company. HRH Prince Maximillian Habsburg, Thomas Schaetti, and Stefan Lenhart accepted such appointments on January 23, 2020. Two appointees,
Georgi Parrik and Stefan Lenhart, are qualified as an independent using the
definition of independence under NASDAQ Listing Rule 5605(a)(2) and the
standards established by the Securities and Exchange Commission.

On May 12, 2020, the Company entered into an acquisition agreement with Migom
Bank Ltd.
and Thomas A. Schaetti (the “Migom Agreement”). Pursuant to the Migom
Agreement, the Company acquired all of the outstanding equity of Migom Bank Ltd.
(“Migom Bank“). Migom Bank is a regulated full-service international bank,
licensed by the Financial Services Unit of the Ministry of Finance of
Commonwealth
of Dominica, specializing in providing retail banking services to
individuals and companies worldwide. In addition to the traditional services of
a deposit institution Migom Bank offers lending, leasing, and investment
services, provides money transmittal services, is authorized to issue and
administer means of payment such as credit and debit cards, travelers cheques,
bankers’ drafts and electronic money. Migom Bank is also authorized by its
regulators to provide custody of securities, issue guarantees and commitments,
provide credit reference services, safe custody of valuables, offer all forms of
electronic banking and foreign exchange and precious metal dealing services.
Migom Bank is also authorized by its regulators to perform a variety of
investment banking and corporate finance services. In exchange for the equity
Migom Bank, the Company issued Mr. Schaetti 126,222 shares of common stock of
the Company, at a price per share of $9.00.

On May 12, 2020, the Company, entered into an acquisition agreement with Central
Rich Trading Ltd.
and Thomas A. Schaetti (the “Central Agreement”). Pursuant to
the Central Agreement, the Company acquired all of the outstanding equity of
Central Rich Trading Ltd. (“Central”). Central is a money service business that
is licensed by the Hong Kong Customs and Excise Department to provide all forms
of permitted money services, electronic money and payment services in the
respective territories. In exchange for the equity of Central, the Company
issued Mr. Schaetti 17,778 shares of common stock of the Company, at a price per
share of $9.00.

On May 14, 2020, Mr. Thomas A. Schaetti was appointed as President of the
Company and Georgi Parrik assumed the title of Chief Executive Officer.

On the 19th of January 2021, Heritage Equity Fund LP and Migom Verwaltungs GMBH
entered into a restricted shares acquisition transaction; on which Migom
Verwaltungs GMBH acquired 5,030,000 restricted shares. The transaction was
treated as a transfer of shares, given that Mr. Thomas Schätti is the sole
shareholder of both legal entities.

On the 28th of April 2021 Heritage Equity Fund LP and Migom Verwaltungs GMBH
entered into a restricted class A shares acquisition transaction; on which Migom
Verwaltungs GMBH acquired 650,000 restricted class A shares. The transaction was
treated as a transfer of shares, given that Mr. Thomas Schätti is the sole
shareholder of both legal entities.

On 28th of June 2021, Mr. Ricardo Salcedo Sanchez was appointed Chief Financial
Officer of Migom Global Corp.

On 27th of September 2021, Migom Global Corp sold a majority stake of Central
Rich Trading Limited
(99% of share capital) to Mr. Chin Sin Kwok for HKD 79,768
or USD 10,252 (at closing exchange rate of 27th of September 2021).


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The Company, through Migom Bank, provides a full set of general and private
banking services, with strict but reasonable compliance policies. Migom Bank is
multi-currency IBAN’s, both SEPA and SWIFT-enabled and has universally accepted
prepaid debit cards. We provide fast global money transfers, superb account
security and data protection, a full suite of e-banking tools online and in-app,
and a seamless link to crypto assets, through a network of worldwide regulated
financial institutions.

Migom Bank offers personal accounts, which can be applied for and opened online.
Our general banking accounts offer everything to simplify and streamline daily
financial life. You can see the Company’s services at migom.com. Migom Bank also
provides international e-commerce, with multiple currencies, support locations
in key parts of the world, a network of reliable correspondent banks and an
expert IT team. Migom Bank is managed by the group of Swiss and international
financial services professionals. Migom Bank offers personal accounts, which can
be applied for and opened online. Migom Bank also has an app that can be found
at the App Store or Google Play.

Migom Bank offers an e-wallet that can be linked to existing credit/debit cards,
bank accounts and connects to various money transfer systems turning it into a
hub of personal finances. The e-wallet accepts BTC or other blockchain-based
coins where it bridges crypto asset holdings with the fiat currency world via
seamless instant transfers between your accounts.

Migom Bank provides its Private Bank portfolio-holders with personal advice and
individually-crafted trading strategies in most of the relevant securities
markets. Our global industry affiliations ensure safe custody of funds and
securities, efficient order execution and access to the most difficult products
such as US OTC Markets stocks and Eastern European stock exchanges. Our general
banking clients are offered low-cost online trading on major stock and
commodities exchanges. Migom Bank also offers Visa and MasterCard credit cards.

We assist international clients with capital formation needed for business
expansion. We work with the established investment banks in the most liquid
capital markets of the world we arrange and manage various public offerings and
private placements of capital. The network of our business affiliates used for
these services includes major law and accounting firms, US FINRA-member b/d’s,
UK FCA-licensed companies, EU-passported brokerages and other regulated
entities. We also offer turn-key STO and other asset-tokenization services via
our own regulated securities token exchange. EMI License (London, Lithuania,
Malta, Hong Kong). Migom Bank has correspondent bank accounts in United States,
Canada, Italy, Portugal, France, Great Britain, Luxembourg, Latvia, and Hong
Kong
.

Migom Bank is actively involved in the blockchain revolution. Our clients get
preferred access to crypto currency trading system, which uses artificial
intelligence to work simultaneously on dozens of the most liquid
crypto-exchanges. Our system ensures stealth execution of the most voluminous
trading orders at the best available prices in the shortest possible time. The
speed of our crypto-trading execution combined with the ability of Migom Bank to
safely custody and instantly move fiat funds are one of a kind.

Patent, Trademark, License & Franchise Restrictions and Contractual Obligations
& Concessions

Migom Global uses a group of Intellectual Property Practice lawyers assist
internationally and locally in transactions where intellectual property plays an
important role, such as non-disclosure and confidentiality agreements, franchise
agreements, license agreements and transfer agreements. It is carried out in
accordance with local and international law.

Governmental and Industry Regulations

We will be subject to federal and state laws and regulations that relate
directly or indirectly to our operations including federal securities laws. We
will also be subject to common business and tax rules and regulations pertaining
to the normal business operations.

Research and Development Activities and Costs

Support will be provided for activities targeting among others: regional
marketing, trade and investment promotion, SME development, the development of
local and regional labor markets, the development of an information society, new
technologies, improvement of cooperation between research and business
institutions, the socio-economic and environmental rehabilitation of
technologically transformed and contaminated areas.

Compliance with Environmental Laws

Our operations are not subject to any environmental laws.


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Results of Operations for the Three months ended March 31, 2022


Revenues


For the quarter ended March 31, 2022, we have generated revenue of $8,494,293
compared with $3,932,523 for the quarter ended March 31, 2021.

For the quarter ended March 31, 2022, our expenses related to our banking
operations were $3,183,546 comprised of marketing fee of $93,170, banking
partners fees & commissions of $179,464, other financial institutions fees
$2,029,331, general, and administrative expenses $566,249, interest on deposits
$23,670 and loss on revaluation $291,661 as compared to the Company $1,413,625
expenses paid for our banking operations for the quarter ended March 31, 2021.

For the quarter ended March 31, 2022 our operating expenses (excluding marketing
fees) were $566,249 comprised of wages & salaries $62,739, payroll related taxes
$6,508, travel $33,291, rent $44,788, audit fees $nil, data processing services
$4,979, accounting fees $79,719, legal fees $79,257, other consultants $32,042,
office admin expenses $25,851, client support expenses $142,518, miscellaneous
$12,170, and amortization expenses of $38,844. Gains from revaluation of foreign
exchange comprised to $291,661

The substantial increase in operating expenses was primarily due to the
different activities related to the group substantial growth in new markets,
which leads to the new product launches and increase in the customer base.

Liquidity and Capital Resources

As of March 31, 2022, the Company had $19,957,619 in cash together with total
assets $25,949,264 and liabilities of $5,375,159, as compared with $12,436,662
of cash and $3,059,799 of liabilities as of December 31, 2021. The net operating
capital of the Company is sufficient for the Company to remain operational in
the short and medium term.

For the Three months ended March 31, 2022, we have cash flows used in operating
activities of $5,075,140 as compared to cash flows of $2,525,896 for the same
period in 2021.

We had cash flow for financing activities of $2,561,659 and $11,138,787 for the
Three months ended March 31, 2022 and 2021 respectively.


Critical Accounting Policies


The preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America requires us to make a number
of 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. Such estimates and assumptions affect the reported
amounts of revenues and expenses during the reporting period. We base our
estimates on historical experiences and on various other assumptions that we
believe to be reasonable under the circumstances. Actual results may differ
materially from these estimates under different assumptions and conditions. We
continue to monitor significant estimates made during the preparation of our
financial statements. On an ongoing basis, we evaluate estimates and assumptions
based upon historical experience and various other factors and circumstances. We
believe our estimates and assumptions are reasonable in the circumstances;
however, actual results may differ from these estimates under different future
conditions.



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