BLUEONE CARD, INC. Management Discussion and Analysis or Plan of Operation (Form 10-Q)

This Quarterly Report Form 10-Q contains forward-looking statements. Our actual
results could differ materially from those set forth as a result of general
economic conditions and changes in the assumptions used in making such
forward-looking statements. The following discussion and analysis of our
financial condition and results of operations should be read together with the
unaudited condensed financial statements and accompanying notes and the other
financial information appearing elsewhere in this report. The analysis set forth
below is provided pursuant to applicable Securities and Exchange Commission
regulations and is not intended to serve as a basis for projections of future
events.



Overview



BlueOne Card Inc., a Nevada corporation (the "Company"), through our
relationship with our program manager, EndlessOne Global, Inc., a Nevada
corporation (the "Program Manager"), is a reseller of an all-in-one branded card
with numerous user benefits. Through our relationship with our Program Manager,
we are a FinTech company aiming to provide innovative pay out solutions and
prepaid cards to consumers. Unlike other prepaid card distributors and
companies, we specifically aim to target those who are unbanked, or non-bankable
and who have needs crossing international borders.



According to the 2018 data from the Federal Reserve, there are an estimated 55
million adults currently residing in the U.S. who are unbanked or underbanked.2
This means that about 17% of the entire U.S. population has difficulties
utilizing the standard banking system. This is our target group customers.
Through our relationship with our Program Manager, we earn our revenues mostly
through monthly fees charged to customers for the issued general purpose
reloadable ("GPR") prepaid card, reloading fee, ATM withdrawal fee, and card to
card money transaction fee.

We currently have our head office in Newport Beach, California.

Background



BlueOne Card, Inc. (formerly known as "Avenue South Ltd.," "TBSS International,
Inc.," or "Manneking Inc.") was incorporated on July 6, 2007 under the laws of
the State of Nevada. We started our business as a retailer and importer of
domestic home furnishings from Hong Kong. On September 30, 2011, we changed our
name to TBSS International, Inc., which was engaged in gold mining and drilling
and general construction.

At April 26, 2019 , Corporate Compliance, LLC filed a new application for custody pursuant to NRS 78.347. The Eighth Judicial District Court of Clark County, Nevada granted custody of TBSS International, Inc. at
Corporate Compliance, LLC. At October 15, 2019we changed our name to “Manneking inc.“, then on”BlueOne Card, Inc.” to June 30, 2020.

At June 30, 2020, we also executed a 1 for 100 stock split with a certificate of change and changed our trading symbol to “BCRD”. We filed a
FINRA securities action pursuant to FINRA Rule 6490 which was announced on the daily list as of July 23, 2020.

We were a "Reporting Issuer" subject to the reporting requirements of Section 13
or 15(d) of the Exchange Act from November 2, 2010, upon the effectiveness of
the Registration Statement on Form S-1, until we suspended our reporting
obligations May 29, 2019 through the filing of a Form 15.

Reseller agreement with Endless One Global, Inc.

Effective August 15, 2020, we entered into the Authorized Reseller Agreement
with the Program Manager (the "Reseller Agreement") pursuant to which we have
agreed to be a reseller or an independent sales representative of the Program
Manager and its products and the Program Manager has agreed to support our
reselling efforts. The term of the Reseller Agreement is for 24 months. The
Reseller Agreement does not provide exclusivity and there are no volume sales
requirements pertaining to our reselling efforts. The Reseller Agreement is
renewable by mutual consent of each of the parties for one-year terms unless
either party provides written notice to the other party at least 90 days prior
to the termination of the term of the Reseller Agreement. The Reseller Agreement
may be terminated by either party upon a material breach of either party with
the non-breaching party providing written notice to the breaching party and the
breach remaining uncured with 60 days of the notice. The Reseller Agreement may
also be terminated by either party by written notice if either party ceases to
carry on as a going concern, becomes the object of the institution of voluntary
or involuntary proceedings in bankruptcy, insolvency, or liquidation, makes an
assignment for the benefit of creditors, or if a receiver is appointed with
respect to all or a substantial part of its assets.

2https://en.wikipedia.org/wiki/Unbanked#:~:text=The%20unbanked%20in%20the%20United%20States,-The%20unbanked%20are&text=The%20Federal%20Reserve%20estimated%20there,state% 20Mississippi%2C%20at%2016.4%25

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Our Unique Platform



Through our relationship with our Program Manager, we provide a unique platform
different from other competitors. Unlike many other institutions and companies
who only do card to card transfer domestically, our General Purpose Reloadable
("GPR") GPR BlueOne prepaid card can instantly transfer money from card to card
across the border through our mobile application, which will be available during
Fall of 2021. Consumers who receive the card-to-card transfer can easily cash
out the money at any Automated Teller Machines ("ATM") in the world. Thus, using
our platform, consumers can save time, as well as enjoy reasonable foreign
exchange rate cost.

Our main products and services

Through our relationship with our Program Manager, we offer GPR prepaid cards that provide consumer benefits such as no overdraft fees, no interest charges, virtual bank accounts and free direct deposit.

Some of the advantages of our GPR BlueOne prepaid cards are:

? Our mobile platform will be available in fall 2021 for iOS (Apple) devices,

Android and Windows (Microsoft).

? We provide a Global Remittance Network (“GRN”), which means we can connect any

    proprietary accounts or card systems to other systems worldwide.

  ? Free checking account and check books.

? We believe that our GPR BlueOne prepaid cards will be distributed in all alcohol

    stores and easily obtainable online at www.blueonecard.com as well.

  ? Dynamic CVV function.

  ? Lock and unlock credit card access with SAFE technology. Consumers can
    instantly lock and unlock their cards via text (SMS).

  ? Free checking account.

  ? Direct deposit of checks via our mobile application.

Critical accounting policies

This "Management's Discussion and Analysis of Financial Condition and Results of
Operations" section is based upon our financial statements, which have been
prepared in accordance with accounting principles generally accepted in the
United States of America ("U.S. GAAP"). The preparation of financial statements
requires that we make estimates and judgments that affect the reported amounts
of assets, liabilities, net sales and expenses and related disclosures. On an
ongoing basis, we evaluate our estimates, including, but not limited to, those
related to income taxes, fair value derivatives, and accrued liabilities. We
base our estimates on historical experience, performance metrics and on various
other assumptions that we believe to be reasonable under the circumstances, the
results of which form the basis for making judgments about the carrying values
of assets and liabilities that are not readily apparent from other sources.
Actual results will differ from these estimates under different assumptions or
conditions. We apply the following critical accounting policies in the
preparation of our financial statements:



Use of Estimates



Financial statements prepared in accordance with U.S. GAAP require management to
make estimates and assumptions that affect the reported amounts of assets and
liabilities at the date of the financial statements and the reported amounts of
revenues and expenses during the reporting period. Among other things,
management estimates include the estimated collectability of its accounts
receivable, the valuation of long-lived assets, warranty reserves, the
assumptions used to calculate derivative liabilities, assumptions used to value
equity instruments issued for financing and compensation, and the valuation of
deferred tax assets. Actual results could differ from those estimates.



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Recent accounting pronouncements

See Note 1 of the Notes to the Financial Statements contained in this Form 10-Q for management’s discussion of recent accounting pronouncements.

Results of operations for the three and nine months ended December 31, 2021 Compared to the three-month and nine-month periods ended December 31, 2020
(Unaudited)

Revenue



We sold 5,000 and 0 prepaid debit cards and recorded $52,450 and $0 in revenues
for the three months ended December 31, 2021 and 2020. We sold 7,500 and 0
prepaid debt cards and charged a one-time set up fee of $3,500 during the nine
months ended December 31, 2021, and recorded $72,200 and $0 in revenues for the
nine months ended December 31, 2021 and 2020, respectively, since the
commencement of our business plan. Revenues for the three months and nine months
periods ended December 31, 2021 as compared to the same comparable periods in
2020, increased due to the increase in sale of prepaid debit cards to customers.



Cost of Sales



We recorded $42,450 and $0 as cost of sales for the three months ended December
31, 2021 and 2020. We recorded $54,778 and $0 as cost of sales for the nine
months ended December 31, 2021 and 2020, respectively. Cost of sales for the
three months and nine months ended December 31, 2021 increased as compared to
the same comparable periods in 2020 primarily due to the increase in sale of
prepaid debit cards.



Operating Expenses



Legal & Filing Fees



Legal and filing fees consisted of fees incurred by the Company in preparing and
filing the regulatory reports with the Securities and Exchange Commission. The
Company recorded legal and filing fees of $1,622 and $10,080 for the three
months and nine months periods ended December 31, 2021 and 2020, compared to and
$5,144 and $9,205 for the three months and nine months ended December 31, 2020,
respectively. The decrease in legal and filing fees for the three months ended
December 31, 2021 resulted because the Company incurred expenses relating to the
preparation of legal documents and filing fees due to the name change and change
of ownership in 2020. The increase in legal and filing fees for the nine months
ended December 31, 2021 as compared to the same comparable period in 2020
resulted because the Company filed the registration statement with the
Securities and Exchange Commission on August 31, 2021 and incurred legal and
filing fees.



Rent



The Company recorded rent expense of $18,337 and $11,777 for the three months
ended December 31, 2021 and 2020, and $53,011 and $21,254 for the nine months
ended December 31, 2021 and 2020, respectively. The increase in rent expense for
the three months and nine months ended December 31, 2021 resulted due to the
Company leasing an office facility in November 2020 and recording three months
and nine months' rent to manage its business operations. For the three months
and nine months ended December 31, 2020, the Company's office lease term matured
in April 2020 and it recorded only one month rent in that quarter. The Company
leased the new office space starting November 1, 2020 and recorded the rent
expense for two months for the period ended December 31, 2020, respectively.

General and administrative expenses

General and administrative expenses ("G&A") primarily included accounting,
consulting and professional fees, officer's compensation and payroll taxes,
depreciation, dues and subscriptions, and other administrative expenses. For the
three months and nine months ended December 31, 2021, we incurred G&A of
$124,077 and $348,327 as compared to $73,573 and $138,708 for the same
comparable periods of 2020. The increases in G&A were primarily due to the
Company engaging accountants, consultants, research and development fees and
marketing fees, payroll and other administrative expenses to expand its
infrastructure and operations.



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Other Income (Expense)



Other income and expenses include interest expense relating to the financing the
purchase of Company vehicle and credit card interest. We reported interest
expense of $829 and $1,987 for the three months and nine months ended December
31, 2021 and 2020, as compared to $1,054 and $2,936 for the same comparable
periods of 2020. The reduction in interest expense resulted since we started to
pay the credit card balances on a timely basis reducing the interest charged.



Net Loss



We reported a net loss of $134,865 and $395,983 for the three months and nine
months ended December 31, 2021 as compared to a net loss of $91,548 and $172,103
for the same comparable periods in 2020. The increase in the net loss was
primarily due to the increase in operating expenses incurred by us.

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