June 28, 2022

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LOVARRA : 10-K/A – Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion should be read in conjunction with our audited
financial statements and the related notes that appear elsewhere in this
registration statement and prospectus.

The following discussion contains forward-looking statements that reflect our
plans, estimates and beliefs. Our actual results could differ materially from
those discussed in these forward-looking statements.

Our audited financial statements are stated in U.S. dollars and are prepared in
accordance with U.S. generally accepted accounting principles (US GAAP).



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                                Company Overview


We are a development-stage company that intends to provide subscription-based,
highly secure expense and earnings tracking application service for personal and
corporate use. We have recently commenced business operations and have not
generated any revenues to date.


                               Plan of Operations


Over the two-year period commencing upon the effective date of our S-1
prospectus, we intend to develop our corporate website and the LOVARRA
Application (LOVARRA), in addition to launching sales and marketing activities.

Within 720 days of the S-1 prospectus becoming effective, we will hire a
third-party development firm to build our website and develop the LOVARRA. We
anticipate hiring firms located in Eastern Europe to undertake these
assignments. We expect the initial release of the LOVARRA within 25 months of
the effective date of our S-1 prospectus. We will initially develop the LOVARRA
for use on both the iOS and Android platforms and will seek to develop the
LOVARRA for use on Windows and Mac platforms in the future.

Within 30 months of the S-1 prospectus becoming effective, we anticipate
developing our marketing materials, user guide and sales guide. We will also
research publications that cater to our target market and attempt to get
editorials in these publications to create additional product awareness. Our
marketing efforts will be primarily Internet-based and may include some or all
of the following:

·Display Advertising – Using web banners or banner advertisements placed on
third-party websites to drive traffic to our website and thereby increase
awareness for our proposed products.

·Search Engine Marketing – Promoting our website by increasing its visibility in
search engines through the use of paid placement, contextual advertising, and
paid inclusion, or through the use of free search engine optimization
techniques.

·Search Engine Optimization – Improving the visibility of our website in search
engines via “natural” or un-paid (“organic” or “algorithmic”) search results.

·Social Media Marketing – Seeking to increase and gain traffic and attention to
our website through creating and maintaining a presence on a variety of social
media sites.

Traditional e-product marketing utilizing social media, non-spam e-mail, fax
blasts and press releases will also be utilized to increase product awareness.
We expect to complete this phase within 360 days of the effective date of this
prospectus.

We may attempt to raise additional money through private placements, public
offerings or long-term loans in order to expand and enhance our proposed product
offerings, enhance our presence in the marketplace, enter into different facets
of the marketplace, increase our product sales and grow our business. We will
also continue to refine our proposed product and optimize our Interned-based
marketing efforts from the market feedback we expect to receive. We do not, at
this point in time, have cost or timing estimates for these endeavors.

At present, Vadim Rata, our sole officer and director, through his investment in
our common stock, has invested $5,865 in our company. Mr. Rata made a formal
additional financial commitment to loan up to $40,000, if required, for the
further development of the business. Mr. Rata entered into an interest-free loan
agreement with Lovarra on April 20, 2018. According to it, Mr. Rata agreed to
advanced funds to the Company in total amount of $40,000. Such funds shall be
used by Lovarra for purposes of development of business. Lovarra will repay the
loan to Mr. Rata at such time the management of the Company deems it reasonable.
At the present time, we have not made any arrangements to raise additional cash
other than through this offering; however, we intend to raise additional capital
through private placements once we gain a quotation on the Over-The-Counter
Bulletin Board or the OTC Markets, for which there is no assurance. If we need
additional cash but are unable to raise it, we will either suspend development
and marketing operations until we do raise the cash or cease operations
entirely. Other than as described in this paragraph, we have no other financing
plans.

If we are unable to complete any phase of our development or marketing efforts
because we do not have enough capital, we will cease our development and or
marketing operations until we raise sufficient funds. Attempting to raise
capital after failing in any phase of our development plan could be difficult.


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                              RESULTS OF OPERATION

For the year ended December 31, 2019, the Company has a net loss of $11,113. 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.

Years Ended December 31, 2019 and 2018

Revenue

During the year ended December 31, 2019 and 2018, the Company has not earned any
revenue.


Operating Expenses


During the year ended December 31, 2019, we incurred total expenses and
professional fees of $11,113 compared to $615 during the year ended December 31,
2018
. General and administrative and professional fee expenses incurred
generally related to corporate overhead, financial and administrative contracted
services, such as legal and accounting and increase was due to legal and
accounting expenses relating to our Form S-1 registration and our 10-Q filing
statements with the SEC.


Net Loss


Our net loss for the year ended December 31, 2019 was $11,113 compared to net
loss of $615 during the year ended December 31, 2018.


                        LIQUIDITY AND CAPITAL RESOURCES


As of December 31, 2019, our total assets were $137 compared to $3,914 in total
assets as of December 31, 2018. The decrease in assets is due to the return of
prepaid expense from 2018 where the services were not provided and the funds
were returned to the Company.

As of December 31, 2019 and, 2018, our liabilities were $7,365 and $29,
respectively. The increase is due to additional funds contributed by our
President and Director for operations.

Stockholders’ equity was $3,885 as of December 31, 2018, compared to
stockholders’ deficit of $7,228 as of December 31, 2019. The difference was due
to operations during the year ended December 31, 2019 which was supported by
cash funding from our President and Director as opposed to the issuance of
common shares.

Subsequent to December 31, 2019, we issued 538,000 shares for proceeds of
$8,070.

Cash Flows from Operating Activities

For the year ended December 31, 2019, net cash flows used in operating
activities were $6 compared to $4,504 during the year ended December 31, 2018.

The decrease in cash used for operating activities is due to the fact that the
majority of the expenses during the year were paid directly by the President and
Director.

Cash Flows from Financing Activities

Cash provided by financing activities during the year ended December 31, 2019
was $50 compared to $4,500. Financing for the current year was from the Chief
Executive Officer of the Company which is unsecured, non-interest bearing, and
due on demand whereas $4,500 of financing from the prior year was due to the
issuance of common stock to the Chief Executive Officer of the Company.

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.

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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.

Off-Balance Sheet Arrangements

As of the date of this Annual 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.

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