NEWS
American Water Star Announces Filing Delay; Releases Preliminary Third Quarter Unaudited Operating Results
Business Wire - November 22, 2005 08:00
LAS VEGAS, Nov 22, 2005 (BUSINESS WIRE) -- American Water Star Inc. (AMEX: AMW), today announced that, as discussed in its Form 12b-25 filed with the Securities and Exchange Commission, it will delay the filing of its Form 10-QSB for the period ended Sept. 30, 2005, due to additional work required in the preparation and review of its financial statements.
Subsequent to the resignation of the company's CFO in July 2005, the company moved its accounting department and records to its corporate offices in Las Vegas contributing to the delay in the preparation of the company's 2005 third quarter results. Because of the delay, on Thursday, Nov. 17, 2005, the company's auditor advised that it would not be able to complete its review to meet the filing deadline.
The final 2005 third quarter results are expected to be completed this week to allow the company to file its 10-QSB by next week.
In the interests of providing information to its stockholders with respect to the quarter ended Sept. 30, 2005, the company is announcing the following financial results for that quarter. The company cautions stockholders that all of these results are subject to change, possibly materially, and that this information does not represent all of the information that would be included in a Quarterly Report on Form 10-QSB with respect to that quarter's financial results.
Revenues for the three months ended Sept. 30, 2005, were approximately $890,354 with a net loss of $1,775,860 or ($0.02) per share. Selling, General and Administrative expenditures were approximately $2,991,549 for the third quarter of fiscal year 2005. The company's total assets as of Sept. 30, 2005, were approximately $16,164,295 with total liabilities of $10,028,727 and stockholder's equity of $6,135,568.
By the end of fiscal year 2004, the company began the initial test production runs in its three facilities located in Jacksonville, Fla.; Magnolia, Miss.; and Phoenix. Currently, the company's Arizona facility is producing product and, due to the reduction in sales to the southern regions affected by the hurricanes, the company's Florida facility is producing limited quantities of its product. The company is in the process of closing its facility in Mississippi and removing its inventory and equipment which it plans to transport to its facility in Jacksonville. Due to the devastation caused by the hurricanes to the region, the company has no current plans to reopen a plant in Mississippi.
During the quarter the company announced that it had reached an agreement with Lipsey Mountain Spring Water Co., the exclusive provider of water for the Federal Emergency Management Agency (FEMA) during presidentially declared disasters. Lipsey agreed to utilize American Water Star's bottling facilities, among others, to supply a portion of the water required by USACE, FEMA and individual states for disaster relief. The company will continue to supply water for disaster relief as needed and requested by Lipsey.