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CMIT .0006 Hurricane Matthew: Strongest storm since 2004 nears Florida
CMIT .0006 run big when Katrina hit
CMIT .0006 falling next big Hurricane play 250 mil A/S
CMIT .0006 250 mil A/S Hurricane play
I'm ready for a Hurricane Party, Let's go.lol
Still a few months away for me to start looking yet. Saw this though:
After a rest, the North Atlantic is forecast to return to above normal tropical cyclone activity for the 2010 hurricane season according to Philip J. Klotzbach and William M. Gray at the Colorado State University.
Factors cited by the report include warm sea temperatures due to the continued warm phase of the Atlantic Multidecadal Oscillation (AMO) and that the present El Nino is expected to weaken before the onset of the next hurricane season (El Nino conditions tend to reduce the number of storms).
The team is forecasting 11-16 named systems, 6-8 hurricanes and 3-5 intense hurricanes during 2010.
Any updated Hurricane plays for 2010?
Showtime:
MIAMI - Hurricane Fausto has increased to a category 2 storm in the Pacific while Tropical Storm Dolly moves over Mexico's Yucatan peninsula and heads for the Gulf of Mexico.
Though Hurricane Fausto has increased in strength, the National Hurricane Center in Miami says the storm has probably reached its peak intensity and is expected to weaken during the next 24 hours. Fausto's maximum sustained winds are near 100 mph and the storm's center is 405 miles west-southwest of Cabo San Lucas, Mexico.
Meanwhile, Tropical Storm Dolly is expected to strengthen as it moves into the Gulf of Mexico and could become a hurricane on Tuesday. Its winds are near 50 mph.
Also in the Atlantic, Tropical Storm Cristobal continues to move northeast, away from the U.S. coast.
About friggin time~
MIAMI (Reuters) - Tropical Storm Bertha, moving briskly across open ocean waters, may strengthen into the first hurricane of the 2008 Atlantic storm season sometime during the next 48 hours, U.S. weather forecasters said on Sunday.....
.....Bertha is the second tropical storm of what has been predicted to be an above-average storm season in the Atlantic and Caribbean.
WASHINGTON - Global warming isn't to blame for the recent jump in hurricanes in the Atlantic, concludes a study by a prominent federal scientist whose position has shifted on the subject.
Not only that, warmer temperatures will actually reduce the number of hurricanes in the Atlantic and those making landfall, research meteorologist Tom Knutson reported in a study released Sunday.
In the past, Knutson has raised concerns about the effects of climate change on storms. His new paper has the potential to heat up a simmering debate among meteorologists about current and future effects of global warming in the Atlantic.
Ever since Hurricane Katrina in 2005, hurricanes have often been seen as a symbol of global warming's wrath. Many climate change experts have tied the rise of hurricanes in recent years to global warming and hotter waters that fuel them.
Another group of experts, those who study hurricanes and who are more often skeptical about global warming, say there is no link. They attribute the recent increase to a natural multi-decade cycle.
What makes this study different is Knutson, a meteorologist with the National Oceanic and Atmospheric Administration's fluid dynamics lab in Princeton, N.J.
He has warned about the harmful effects of climate change and has even complained in the past about being censored by the Bush administration on past studies on the dangers of global warming.
He said his new study, based on a computer model, argues "against the notion that we've already seen a really dramatic increase in Atlantic hurricane activity resulting from greenhouse warming."
The study, published online Sunday in the journal Nature Geoscience, predicts that by the end of the century the number of hurricanes in the Atlantic will fall by 18 percent.
The number of hurricanes making landfall in the United States and its neighbors — anywhere west of Puerto Rico — will drop by 30 percent because of wind factors.
Better get real bad this time.. ;)
ORLANDO, Florida (Reuters) - The noted Colorado State University forecast team expects an above average Atlantic hurricane season and may raise its prediction of 13 tropical storms and seven hurricanes when it updates its outlook next week, the team's founder Bill Gray said on Wednesday.
La Nina cool-water conditions in the Pacific and higher sea surface temperatures in the eastern Atlantic are contributing to enhanced conditions for hurricane activity, Gray told Reuters at the U.S. National Hurricane Conference.
"We're expecting an above average season," Gray said. "The big question we have is, are we going to raise the numbers from our December forecast? We might."
"We're not going to lower the numbers," he said.
The average hurricane season produces about 10 tropical storms and six hurricanes -- a standard that was blown out of the water in the record-busting season of 2005, when 28 storms formed, including the hurricane that swamped New Orleans, Katrina.
The Colorado State team issues forecasts several times a year. In December, it said it expected the 2008 season starting June 1 to produce 13 tropical storms, of which seven would become hurricanes and three would be major hurricanes with winds of at least 111 miles per hour (178 km per hour).
Gray said La Nina, a cooling of waters in the eastern Pacific that can enhance conditions for hurricane activity in the Atlantic, will be "on the cold side."
"Also, the sea surface temperatures in the eastern Atlantic particularly off Iberia and off northwest Africa, they are very warm, much like they were at this time in 1995 and 2005 when we had very active seasons," he said.
..and here I was already waiting for the 2008 run up.. ;)
VERACRUZ, Mexico - Lorenzo strengthened into a Category 1 hurricane as it bore down on Mexico's Gulf Coast with powerful winds and rain, forcing authorities to evacuate low-lying coastal communities before its projected Friday landfall.
Officials canceled classes and set up temporary shelters on the coastline of Veracruz state Thursday, as the Mexican government issued a hurricane warning from Palma Sola to Cabo Rojo.
The U.S. National Hurricane Center in Florida said late Thursday that Lorenzo was forecast to strengthen further before hitting land in six to 12 hours near the small port of Tuxpan, and warned that "preparations to protect life and property should be rushed to completion."
Re: WEGI
I just looked at it. If this post is true, might just be a gift. I'll be watching:)
Posted by: scallywag
In reply to: None Date:9/20/2007 6:16:01 PM
Post #of 4579
i might be able to offer some insight on why the heavy volume today and also the heavy volume around august 1st. i joined along with 2000 other people (that's what they said) a bulletin board "elite" trading group for the price of $1299/year around the end of july. the group started at that time also and wegi was one of the first recommendation to buy at .19 or better. i also stumbled onto this ihub at the same time and laughing as many poster were marveling at the sudden volume without any explanation. well today, we were told to dump it all and that might explain the sudden drop. fwiw, the recommendations of this newsletter have lost me a lot of money and i've received better advice from just reading the opinions of other posters here at ihub.
Hey Track..WEGI is coming to papa.. chart:
WASHINGTON (Reuters) - Tropical Storm Ingrid, the ninth Atlantic storm of the year, formed on Thursday in the Atlantic Ocean east of the Caribbean islands, the U.S. National Hurricane Center said.
The storm, located about 840 miles east of the lesser Antilles, was headed in the general direction of the northeastern Caribbean but was days from having any impact on land.
Top sustained winds were near 40 mph (65 kph) with higher gusts, the center said, adding a small increase in strength was possible in the next 24 hours.
HOUSTON - Hurricane Humberto crashed ashore along southeast Texas early Thursday, bringing heavy rains and maximum sustained winds of up to 80 mph as it made its way to Louisiana, the National Weather Service said.
The Category 1 storm made landfall about 5 miles east of High Island, near Sea Rim State Park, meteorologist Jim Sweeney said. The storm was expected to start weakening as it continued inland.
This one also..lol
New Forecast Calls for 6 More Hurricanes
By Associated Press
3 hours ago
FORT COLLINS, Colo. - Hurricane expert William Gray downgraded his 2007 Atlantic storms forecast slightly Tuesday, but he still predicted above-average activity for the remaining three months of the season, with six more hurricanes, three of them major.
One of those hurricanes was lashing the coast of Honduras on Tuesday as a powerful Category 5 storm named Felix, said forecaster Phil Klotzbach, a member of Gray's team at Colorado State University.
Klotzbach said a combination of a weak La Nina and low pressure readings in the Atlantic usually indicated an active 2007 season.
The first two months of the Atlantic hurricane season, June and July, had average activity with two named storms but no hurricanes. August was about average, with one hurricane, Dean, which grew into a Category 5 storm before hitting Central America.
Gray has been forecasting hurricanes for more than two decades, and his predictions are watched closely by emergency responders and others in coastal areas. Before the start of the June-through-November Atlantic season, his team forecast 17 named storms and nine hurricanes. The team revised that forecast slightly downward in August to 15 named storms and eight hurricanes.
.....Felix’s top winds weakened slightly to 135 mph as it headed west, but forecasters warned that it could strengthen again before landfall along the Miskito Coast early Tuesday. From there, it was projected to rake northern Honduras, slam into southern Belize on Wednesday and then cut across northern Guatemala and southern Mexico, well south of Texas.
The National Hurricane Center in Miami said Felix was packing maximum sustained winds of 165 mph as it plowed westward toward Central America, where it was expected to skirt Honduras’ coastline Tuesday before slamming into Belize on Wednesday as a hurricane capable of massive destruction.
You know I like the Hurricane board but so much pumping and bashing going on..real shame..
Higher priced Hurrican plays:
HSOA
GLBL
WEL
FUEL
IPII
http://stockcharts.com/c-sc/sc?s=IPII&p=D&yr=2&mn=0&dy=0&i=t52210044033&r=33...
WWAT
CHB
ANL
TRMA
TDW
OII
CLHB
ABIX
AW
BLDP
CAV
CLWT
CPST
CLHB
DPDW
ELNK
EEI
GV
HD
LMS
LOW
OMNI
PCL
SYEV
STHK
SPN
STRL
Felix on the front page of Yahoo and MSN. That will get them some notice.
Dean hit Mexico..I think around Aug 14 the storm was named...and on the 19th it was clearly gonna hit Mexico
NSMG hit .20 EEGI .12 WEGI .27 ..not bad moves..
Right now invest94 looks to have the best chance to go US bound:
At 11 p.m. EDT, Felix was centered about 100 miles east-northeast of Bonaire and 210 miles east of Aruba and was moving westward at about 18 mph, the U.S. National Hurricane Center said.
Forecasters said satellite loops show the storm is steadily expanding in size.
I follow the WEGI board: http://investorshub.advfn.com/boards/read_msg.asp?message_id=22542644
Where the hell did you get that pic?
Felix has some nice potential paths:
I just read that. Might be a good week ahead for hurricaners :)
Felix reaches hurricane force in Caribbean
Grenada bears brunt of rough weather; Henriette turns deadly in Mexico
ST. GEORGE’S, Grenada - Hurricane Felix gathered strength Saturday as it pounded Grenada with heavy rains and winds, snapped small boats loose from their moorings and toppled utility poles on its route toward the Caribbean island of Aruba.
The storm was upgraded from a tropical storm to a Category 1 hurricane Saturday evening, with sustained maximum winds near 75 mph. It was expected to strengthen even further as it passed near the islands of Aruba, Bonaire and Curacao late Saturday or early Sunday.
Tropical Storm Henriette, meanwhile, was moving out to sea after dumping rain on Mexico’s Pacific coastline. In Acapulco, the storm loosened a hillside in one of the resort’s poor neighborhoods, causing landslides Saturday that killed six people and prompted evacuations.
Felix swept over Grenada, knocking local radio and TV stations out of service and toppling utility lines. No injuries were immediately reported, but the storm ripped roofs off at least two homes and a popular concert venue was demolished. Orchards were left in ruin.
‘Very, very scary’
Jess Charles, 29, said he and his family were terrified as they hunkered down overnight in their house in the Grenadian town of Calliste, listening to the storm’s howling winds.
“It was really very, very scary. The wind was blowing so hard we thought our roof might come off,” Charles told The Associated Press.
Felix became the sixth named storm of the 2007 Atlantic hurricane season early Saturday, spawning thunderstorms and downing trees in Barbados, St. Vincent and the Grenadines, and the twin-island nation of Trinidad and Tobago. The Caribbean islands reported only minor damage.
The tropical storm was moving away from the southern Windward Islands late Saturday morning and was to pass near Aruba, Bonaire and Curacao by evening or early Sunday morning, according to forecasters.
Tourists flee islands
At 2 p.m. EDT (1800 GMT), Felix was centered 420 miles southeast of Puerto Rico and was moving westward at 18 mph. It had top sustained winds of 70 mph — up from 45 mph earlier Saturday, the U.S. National Hurricane Center said.
Forecasters said satellite loops show that Felix is a small storm, but is steadily expanding in size.
Boy that upper path look good:
Right now I'm holding the small floaters with proven moves in the past: NSMG, EEGI, and WEGI...also have the merger hurricaner IVOT small floater and still cheap...
Looks like our baby could miss Mexico and go for the US...
IVOT..had nice accumulation today..folks hearing about merger news coming..chart:
INVEST94L is starting to look like the real thing:
IVOT .007 X .0074 merger play hurricane sector..rumors of news next week..
Waiting for WEGI to make a nice dip..might have to wait till after Cane season..lol
EEGI .025 X .029 ..have been accumulating around these prices..is at year's low..
NSMG .10 X .12 cheap here..I've started picking some up..here's recent news: Revenues for the second quarter of 2007 increased 58 percent to $2.4 million compared to $1.4 million for the first quarter 2007.
National Storm Management Reports Second Quarter Results
CHICAGO, IL -- (MARKET WIRE) -- 08/22/07 -- National Storm Management, Inc. (PINKSHEETS: NSMG) reported its second quarter financial results for the period ended June 30, 2007.
Revenues for the second quarter of 2007 increased 58 percent to $2.4 million compared to $1.4 million for the first quarter 2007. Operating income also improved to a loss of $505,917 in the second quarter from $777,254 in the first quarter of 2007. The company posted a net loss of $1.1 million, $0.01 per share based on 78.6 million shares, resulting from a higher interest expense, which increased to $637,963 from $262,246 in the first quarter 2007.
"During the first half of 2007, we continued to remain focused on cost containment while diligently pursuing strategies to improve our revenues and operating income," said Terry Kiefer, president and CEO of National Storm Management. "We will remain focused on these strategies and we believe we are well positioned to respond to forecasters' predictions of inclimate weather including an above average hurricane season."
According to a recent report by the National Oceanic & Atmospheric Administration (NOAA), the 2007 Atlantic hurricane season, which begins June 1 and ends November 30, has a 75 percent chance of being above normal in activity. NOAA scientists are predicting 13 to 17 named storms, with seven to 10 becoming hurricanes, of which three to five could become major hurricanes of Category 3 strength or higher.
In July 2007, National Storm Management filed an amendment to its registration statement on Form SB-2, which is currently being reviewed by the Securities and Exchange Commission (SEC). Upon effectiveness of the registration statement, the Company will become subject to SEC reporting requirements, including the filing of quarterly and annual financial statements. The Company intends to seek to have its common shares quoted on the Over-The-Counter Bulletin Board (OTCBB) after it becomes subject to such reporting requirements. Management hopes such measures will improve liquidity in the company's common stock.
About National Storm Management, Inc.
National Storm Management (PINKSHEETS: NSMG) is a national construction company headquartered in Glen Ellyn, Illinois providing storm restoration services in seven states. Its operating affiliates include: ABC Exteriors (Illinois, Indiana and Kentucky); Pinnacle Roofing (Florida and Louisiana); WRS, Inc (Minnesota); and First Class Roofing and Siding (Ohio). The company and its affiliates are recognized by all major insurance companies such as State Farm, Allstate, Farmers and others for storm related claims. The company is a member of the National Roofing Contractors Association (NRCA) and the Better Business Bureau. More information is available at www.nationalstorm.com.
Forward-Looking Statements
Certain statements included in this press release may constitute forward-looking statements. These forward-looking statements relate to, among other things, plans and timing for the introduction or enhancement of our services and products, statements about future market conditions, financial performance, plans to update a registration statement with the SEC, and other expectations, intentions and plans contained in this press release that are not historical fact and involve risks and uncertainties. Our expectations regarding future revenues depend upon our ability to develop and supply products and services that meet defined specifications. When used in this press release, the words "plan," "expect," "believe," and similar expressions generally identify forward-looking statements. These statements reflect our current expectations, but actual results could differ materially as a result of many factors, including, but not limited to, severe weather conditions and the physical damage caused by hail storms and hurricanes, fluctuations in interest rates and the resulting impact on financing costs, general economic developments in the states where we do business, availability of labor, materials and supplies, our ability to execute our future growth plans and our ability to timely and accurately prepare quarterly and annual financial statements. Forward-looking statements are made as of this press release and we do not undertake any obligation to provide updates to such statements except where required to so by law.
National Storm Management, Inc.
CONSOLIDATED BALANCE SHEET
June 30, 2007
Unaudited Unaudited
----------- -----------
2007 2006
June 30, June 30,
----------- -----------
ASSETS
Current assets :
Cash $ 230,628 $ 21,375
Accounts receivable (less respective
allowances) 158,863 1,264,593
Inventories 34,446 175,509
Management & Salesman Advances 43,996 37,299
Cost in excess of billings 293,527 320,421
Prepaid Expenses 374 145,332
Other current assets 76,924 86,009
----------- -----------
Total current assets 838,758 2,050,538
Property, plant and equipment 508,512 486,705
Less: Accumulated depreciation and
amortization (301,774) 209,678
----------- -----------
Property, plant and equipment - net 206,738 277,027
Goodwill - 5,000
Deferred tax asset - net of valuation allowance 1,082,011 848,727
Other 27,741 79,257
----------- -----------
Total assets $ 2,155,248 $ 3,260,549
=========== ===========
LIABILITIES AND STOCKHOLDER EQUITY
Current liabilities :
Current maturities of long-term debt $ 2,505,087 $ 1,081,363
Accounts payable - trade 1,182,062 1,507,769
Other current liabilities 1,200,996 34,160
Unearned income 177,413 -
Billings in excess of costs 37,961 1,133,669
----------- -----------
Total current liabilities 5,103,519 3,756,961
Non-current Liabilities :
Term loan, net of current portion 27,322 26,836
Other long-term obligations - 107,500
----------- -----------
Total long-term debt 27,322 134,336
----------- -----------
Total liabilities 5,130,841 3,891,297
----------- -----------
Stockholders' Equity :
Common Stock 78,592,204 and 65,624,876
issued and outstanding $ 78,592 $ 65,625
Additional paid-in capital 4,688,561 2,544,637
Accumulated Deficit (7,742,745) (3,241,010)
----------- -----------
Total Stockholders' Equity (2,975,592) (630,748)
----------- -----------
Total Liabilities and Stockholders'
Equity $ 2,155,248 $ 3,260,549
=========== ===========
National Storm Management, Inc.
CONSOLIDATED STATEMENT OF OPERATIONS
June 30, 2007
** UNAUDITED **
-------------------------- --------------------------
Three Months Ended Six Months Ended
June 30, June 30,
-------------------------- --------------------------
2007 2006 2007 2006
------------ ------------ ------------ ------------
REVENUES:
Net trade sales $ 2,445,833 $ 2,200,052 $ 3,829,388 $ 4,494,562
------------ ------------ ------------ ------------
OPERATING COST AND
EXPENSES:
Cost of product
sold 1,334,866 974,500 2,172,289 2,501,434
Selling,
administrative,
and general 1,597,466 1,650,791 2,898,537 3,243,844
Depreciation and
amortization 19,477 40,432 41,792 52,669
------------ ------------ ------------ ------------
2,951,809 2,665,723 5,112,618 5,797,947
------------ ------------ ------------ ------------
INCOME (LOSS) FROM
OPERATIONS (505,976) (465,671) (1,283,230) (1,303,385)
Interest expense (637,963) (21,950) (900,209) (51,028)
Other income
(loss) 5,987 (826) 6,437 384
------------ ------------ ------------ ------------
Income (loss)
before income
taxes and
extraordinary
gain (1,137,952) (488,447) (2,177,002) (1,354,029)
Provision
(Benefit) for
income taxes 0 (6,599) (259,357)
------------ ------------ ------------ ------------
NET INCOME (LOSS) $ (1,137,952) $ (481,848) $ (2,177,002) $ (1,094,672)
============ ============ ============ ============
Basic Earnings per
Share:
Weighted -average
shares $ (0.01) $ (0.01) $ (0.03) $ (0.02)
Net earnings
(loss) $ (0.01) $ (0.01) $ (0.03) $ (0.02)
============ ============ ============ ============
National Storm Management, Inc.
CONSOLIDATED STATEMENT OF CASH FLOWS
June 30, 2007
**UNAUDITED**
--------------------------
Six Months Ended
June 30,
--------------------------
2007 2006
------------ ------------
CASH FLOWS FROM OPERATING ACTIVITIES :
Net income (loss) $ (2,177,002) $ (1,094,672)
Adjustments to reconcile net income (loss) to
net cash provided by (used for) operating
activities :
Depreciation, and amortization 41,792 52,669
Discounted interest on Fife loan 772,705 -
Forfeiture of security deposits 988
Deferred tax benefit (261,000)
Stock and stock options issued for
professional fees 9,375
Changes in components of working capital :
(Increase) decrease in accounts
receivable - net 481,942 (599,609)
(Increase) decrease in inventories 20,344 (10,433)
(Increase) decrease in advances (1,870) 32,711
Increase (decrease) in cost in
uncompleted contracts (346,808) 578,377
(Increase) decrease in prepaid expenses 22,283 17,142
(Increase) decrease in other current
assets 7,851
Increase (decrease) in accounts payable (204,218) (146,921)
Increase (decrease) in unearned income 177,413
Increase (decrease) in billings in
uncompleted contracts (243,698)
Increase (decrease) in other current
liabilities 14,456 (42,094)
Other, net (330) -
------------ ------------
Net cash provided by (used for)
operating activities $ (1,434,152) $ (1,464,455)
------------ ------------
CASH FLOWS FROM INVESTING ACTIVITIES :
Capital expenditures $ (11,024) $ (27,143)
Increase (decrease) in other long-term
liabilities 107,500
------------ ------------
Net cash provided by (used in)
investing activities $ (11,024) $ 80,357
------------ ------------
CASH FLOWS FROM FINANCING ACTIVITIES :
Issuance of common stock $ 1,827,825 $ 1,409,290
Repayment of term loan under
foreclosure (1,655,259) (44,967)
Repayment of supplier note payable (41,727)
Repayment of installment note payable 1,655
Proceeds from Fife loan 1,500,000
Increase in term loan 325 -
------------ ------------
Net cash provided by (used in)
financing activities $ 1,632,819 $ 1,364,323
------------ ------------
NET INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS $ 187,643 $ (19,775)
Cash and cash equivalents, beginning of period 42,985 41,150
------------ ------------
Cash and cash equivalents, end of period $ 230,628 $ 21,375
============ ============
Cash interest paid for the periods presented : $ 112,709 $ 51,028
============ ============
National Storm Management, Inc.
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
June 30, 2007
**UNAUDITED**
Common
Stock Additional
Par Paid in Retained Stockholders'
Shares Value Capital Earnings Equity
========== ======== =========== ============ ============
Balance,
January 1,
2004 25,751,670 $ 25,752 $ (314,052) $ (288,300)
Net income 65,952 65,952
Dividends
paid -
owners
discretionary
draw (247,915) (247,915)
Common stock
issued in
connections
with new
entities 8,248,330 8,248 (8,248) -
========== ======== =========== ============ ============
Balance,
December 31,
2004 34,000,000 $ 34,000 $ (504,263) $ (470,263)
Issuance of
stock
options for
professional
fees 6,800,000 6,800 746,200 753,000
Acquisition
of assets
of N.S.M.
Inc 6,000,000 6,000 (1,000) - 5,000
Common stock
issued 2,313,903 2,314 397,284 - 399,598
Net income
(loss) (1,642,075) (1,642,075)
========== ======== =========== ============ ============
Balance,
December 31,
2005 49,113,903 $ 49,114 $ 1,142,484 $ (2,146,338) $ (954,740)
Issuance of
stock
options for
professional
fees - - - - -
Common stock
issued 16,510,973 16,511 1,402,153 - 1,418,664
Net income
(loss) (1,094,672) (1,094,672)
========== ======== =========== ============ ============
Balance, June
30, 2006 65,624,876 $ 65,625 $ 2,544,637 $ (3,241,010) $ (630,748)
Issuance of
stock
options for
repayment
of debt 3,000,000 3,000 (3,000) - -
Proceeds
from sales
of stock on
Fife loan 6,961 6,961
Common stock
issued 1,067,318 1,067 321,039 - 322,106
Net income
(loss) (2,324,733) (2,324,733)
========== ======== =========== ============ ============
Balance,
December 31,
2006 69,692,194 $ 69,692 $ 2,869,637 $ (5,565,743) $ (2,626,414)
Issuance of
stock
options for
repayment
of debt 8,900,010 8,900 1,818,924 - 1,827,824
Net income
(loss) (2,177,002) (2,177,002)
Balance, June
30, 2007 78,592,204 $ 78,592 $ 4,688,561 $ (7,742,745) $ (2,975,592)
========== ======== =========== ============ ============
Note 1 – Basis of presentation
The accompanying consolidated balance sheets as of June 30, 2007, the consolidated statements of operations and cash flows for the three month period ended June 30, 2007 and 2006 and the consolidated statement of changes in stockholders' equity for the three month period ended June 30, 2007 are unaudited. The data disclosed in the notes to the consolidated financial statements for those periods is also unaudited. In the opinion of management, these statements have been prepared on the same basis as the audited financial statements and include all adjustments, consisting of normal recurring adjustments, necessary to present fairly the position of the interim period. Interim operating results are not necessarily indicative of results for the full year. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to the rules and regulations relating to the interim financial statements.
Note 2 – Accounts receivable
Accounts receivable is recorded at net of $158,863 and $640,805 and includes an allowance of $169,408 and $44,230 in 2007 and 2006, respectively.
Note 3 – Fixed assets
Fixed assets are recorded at cost. Depreciation is computed using the straight-line method. Estimated service lives of fixed assets vary based on classification from 3-20 years.
As of June 30, 2007, the Company had fixed assets totaling $508,512 and accumulated depreciation of $301,774. The Company recorded depreciation expense of $19,477 and $40,432 during the three month periods ended June 30, 2007 and 2006, respectively
Note 4 – Term loans
June 30, 2007
---------------
Note payable - John Fife - Convertible $ 5,087
---------------
Note payable - John Fife - 1,500,000
---------------
Note payable - Bridge Loan 1,000,000
Vehicle term loans
(Interest rates vary between 3.9 -
8.75%) 27,322
Less current maturities of long-term debt 2,505,087
---------------
Total long term debt $ 27,322
===============
On July 24, 2006 the Company borrowed $1,000,000 from John M. Fife. This note is an original discounted note averaging at a 30% discount rate over a one year period. As security for the loan, the Company's CEO pledged approximately 17,000,000 shares of the Company's common stock to Mr. Fife. If the Company defaults on the loan, then Mr. Fife will have the right to foreclose on the shares of the Company's common stock pledged as collateral and immediately begin to sell such stock until he is repaid in full. In December 2006, the company defaulted on the loan agreement. At this time, the loan agreement was amended to use replacement shares of stock in lieu of the CEO's shares. As of June 30, 2007, 9,000,000 shares of stock were issued and sold and the liability was reduced accordingly.
On January 31, 2007 the Company borrowed $500,000 from John M. Fife. This note is an original discount note averaging at a 30% discount rate over a one year period. On each day February 26, 2007, April 13, 2007, May 21, 2007, and June 29, 2007 the company borrowed an additional $250,000 from Mr. Fife, and the note was amended accordingly. The company pledged 15,000,000 shares of it common stock to secure its obligations under the note. If the company defaults on the loan, then Mr. Fife will have the same right to foreclosure on the shares of the Company's common stock pledged as collateral and immediately begin to sell such stock until he is repaid in full. The maturity date of this note is July 30, 2007, at which time the amount of $2,481,000 will be due and payable.
The Company entered into a bridge loan agreement for $1,000,000 private placement on September 2, 2005. Interest is computed at 6% per annum. This private placement initially is a convertible note that requires the Company to register 5,000,000 shares of stock through a 504 transaction within the state of Nevada to convert this note, failure to use best efforts to procure this registration, the note becomes due the later of October 31, 2005 or the 504 Nevada registration.
The vehicle term loans represent vehicle-financing packages provided by Ford Motor Credit and Chrysler Financial Corporation in which the Company purchased vehicles for its operations. The loans mature in September 2008 and are secured by the titles of the respective vehicles.
Note 5 – Leases
Future minimum lease payments, under operating leases having initial or remaining noncancellable terms in excess of one year are as follows:
Year ending June 30, Operating Leases
==================
2008 $ 215,570
2009 110,055
2010 20,573
2011 0
Thereafter 0
==================
Total minimum lease payments $ 346,198
==================
Note 6 – Income taxes
Deferred income taxes are provided for temporary differences in recognizing certain income and expense items for financial and tax reporting purposes. The deferred tax asset of $1,082,011 as of June 30, 2007 consisted primarily of the income tax benefits from net operating losses. A valuation allowance has been recorded to partially offset the deferred tax asset as the Company believes it is more likely than not that the assets will be utilized. Significant components of the benefit for income taxes for the six month period ended June 30, 2007 are as follows:
The tax effects of the temporary differences and carry forwards that give rise to deferred tax assets consist of the following:
June 30 2007
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Deferred tax assets:
Loss carry forwards $ 2,054,117
Other 109,904
-----------------
Gross deferred tax assets 2,164,021
Valuation allowance (1,082,010)
=================
$ 1,082,011
=================
As of June 30, 2007, the Company has not made any additional provision for deferred taxes.
At June 30, 2007 deferred tax assets were recorded in the accompanying financial statements. The Company's effective tax rate differs from the statutory rates associated with taxing jurisdictions because of permanent and temporary timing differences as well as a valuation allowance.
Note 7 – Commitments and Contingencies
A petition was filed in the County Court of Dallas County on March 22, 2006 by Trucolor, Inc. against the Company, National Storm Management Services, Inc., Barron Moore Holdings, Inc., Terry Kiefer and Thomas Bojadzijev. The petition alleges that Barron Moore arranged a transaction between Trucolor and the Company in which the Company obtained a convertible promissory note from Trucolor in the amount of $1,000,000. The terms of the promissory note allowed conversion of the debt into 5,000,000 shares of the Company at a value of $0.20 per share. Trucolor alleges that the Company fraudulently diluted the existing shares of the Company's stock thereby reducing the value of the collateral to secure the promissory note. Trucolor is seeking actual and special damages, consequential and incidental compensatory damages, and punitive damages. The Company believes this claim is without merit and intends to vigorously defend itself. However, management is unable to predict the outcome of any litigation.
Note 8 - Stockholders' Equity
Earnings per Share
The basic earnings (loss) per share is calculated by dividing the Company's net income available to common shareholders by the weighted average number of common shares during the year. The Company's Articles of Incorporation authorizes the issuance of 300,000,000 shares of common stock, $0.0001 par value per share, of which 78,592,204 were outstanding as of June 30, 2007.
Recapitalization
The Company completed an acquisition on February 24, 2005 through the exchange of all of the outstanding 1,236,614 shares of National Storm Management Services, Inc. ("NSMS") in return for 34,000,000 shares of National Storm Management, Inc. (formerly known as 18th Letter Inc.) ("NSM"). At the time of the merger, the 18th Letter, Inc. was a public shell company listed on the "Pink Sheets" with virtually no operations, assets or liabilities. In conjunction with the merger, 24,000,000 shares from the previous majority owner of National Storm Management, Inc. were cancelled. Upon completion of the merger, the total common stock outstanding was 40,000,000 shares. As a result of this merger, NSM is the legal acquirer and surviving entity but NSMS is considered the accounting acquirer since its shareholders obtained the controlling interest in NSM.
Stock Options, warrants or similar securities
In conjunction with the merger, the Company granted an option to purchase 2,000,000 shares of NSM's common stock at an exercise price of $0.75 per share for a period of three years, to Shocker 100 Index, LP, and a limited partnership, in which Interim Capital Corp. is the general partner. The option was granted for investment banking services previous by Interim Capital Corp. related to merger. In addition, 18,000,000 shares of the Company's common stock was reserved for issuance under a nonqualified stock option plan was adopted on May 1, 2005.
On December 28, 2005 the Company entered into an agreement to sell 1,000,000 restricted shares of common stock at a price of $0.15 per share to Nite Capital, L.P. This transaction also included common stock purchase warrants up to 1,000,000 shares at an exercise price of $0.20 per common share. The Company believes this issuance of securities is exempt from the registration requirements of the Securities Act under Section 4(2) of the Securities Act as a transaction by an issuer not involving any public offering, or under SEC Rule 506 of Regulation D.
On May 19, 2006, the Company granted La Jolla Cove Investors, Inc. a warrant for the right to purchase up to 20,000,000 shares of the Company's common stock for a premium of $500,000. Upon exercising the warrant, La Jolla Cove Investors, Inc. shall pay the exercise price for the shares of common stock, such exercise price being the greater of (a) $0.001 per share or (b) 80% of the average of the five lowest volume weighted average prices of the Company's common stock during the twenty trading days prior to the date of exercise. La Jolla Cove Investors, Inc. may effect a cashless exercise by surrendering the warrant for a number of shares, as determined by the provisions of the warrant. The warrant expires on May 18, 2009.
Common stock issued:
On February 9, 2006 the Company entered into an agreement with TJ Management Group, LLC, to sell 1,282,051 shares of common stock at $0.078 per share. This offering was conducted in reliance upon the exemption from the registration requirements of the Securities Act as set forth under SEC Rule 504 of Regulation D and Sections 5.1.T and 7 of the Texas administrative Code and Regulations.
On March 8, 2006 the Company entered into an agreement with Diller Investments LLC to sell 5,000,000 shares of common stock at $0.10 per share. This offering was conducted in reliance upon the exemption from the registration requirements of the Securities Act set forth under SEC Rule 504 of Regulation D and Sections 5.1.T and 7 of the Texas Administrative Code and Regulations.
On April 7 and April 10, 2006 the Company entered into an agreement with Mazuma Corp. to sell 1,422,987 shares of common stock at $0.056536 per share, net of legal fees funded from the proceeds of this transaction. This offering was conducted in reliance upon the exemption from the registration requirements of the Securities Act set forth under SEC Rule 504 of Regulation D and utilizing Section 80A.15, Subdivision 2 of the State of Minnesota Administrative Code and Regulations for sale to Minnesota residents.
On April 24 and May 1, 2006 the Company entered into an agreement with Mazuma Corp. to sell 1,100,000 shares of common stock at $0.06 per share. This offering was conducted in reliance upon the exemption from the registration requirements of the Securities Act set forth under SEC Rule 504 of Regulation D and utilizing Section 80A.15, Subdivision 2 of the State of Minnesota Administrative Code and Regulations for sale to Minnesota residents.
On May 2, 2006, the Company entered into an agreement with TJ Management Group, LLC to sell 1,250,000 shares of common stock at $0.06 per share. This offering was conducted in reliance upon the exemption from the registration requirements of the Securities Act under SEC Rule 504 of Regulation D and Sections 5.1.T and 7 of the Texas Administrative Code and Regulations.
On May 3, 2006, the Company entered into an agreement with Mazuma Corp. to sell 1,071,428 shares of common stock at $0.07 per share. This offering was conducted in reliance upon the exemption from the registration requirements of the Securities Act set forth under SEC Rule 504 of Regulation D and utilizing Section 80A.15, Subdivision 2 of the State of Minnesota Administrative Code and Regulations for sale to Minnesota residents.
On May 11, 2006, the Company entered into an agreement with Mazuma Corp. to sell 600,000 shares of common stock at $0.125 per share. This offering was conducted in reliance upon the exemption from the registration requirements of the Securities Act set forth under SEC Rule 504 of Regulation D and utilizing Section 80A.15, Subdivision 2 of the State of Minnesota Administrative Code and Regulations for sale to Minnesota residents.
On May 12, 2006 the Company entered into an agreement with TJ Management Group, LLC, to sell 476,190 shares of common stock at $0.105 per share. This offering was conducted in reliance upon the exemption from the registration requirements of the Securities Act as set forth under SEC Rule 504 of Regulation D and Sections 5.1.T and 7 of the Texas Administrative Code and Regulations.
On May 31, 2006 the Company entered into an agreement with Diller Investments LLC to sell 4,000,000 shares of common stock at $0.05 per share. This offering was conducted in reliance upon the exemption from the registration requirements of the Securities Act set forth under SEC Rule 504 of Regulation D and Sections 5.1.T and 7 of the Texas Administrative Code and Regulations.
On June 26, 2006, La Jolla Cove Investors, Inc. partially exercised its warrant by purchasing 233,317 shares of restricted common stock at $0.24 per share. The price was based on eighty percent (80%) of the average of the five lowest volume weighted average prices of the Company's common stock during the twenty trading days prior to the date of exercise as determined by the provisions of the warrant enter into on May 19, 2006.
On July 12, 2006, La Jolla Cove Investors, Inc. partially exercised its warrant by purchasing 181,291 shares of restricted common stock at $0.28 per share. The price was based on eighty percent (80%) of the average of the five lowest volume weighted average prices of the Company's common stock during the twenty trading days prior to the date of exercise as determined by the provisions of the warrant entered into on May 19, 2006.
On July 14, 2006, La Jolla Cove Investors, Inc. partially exercised its warrant by purchasing 195,650 shares of restricted common stock at $0.28 per share. The price was based on eighty percent (80%) of the average of the five lowest volume weighted average prices of the Company's common stock during the twenty trading days prior to the date of exercise as determined by the provisions of the warrant enter into on May 19, 2006.
On July 24, 2006, La Jolla Cove Investors, Inc. partially exercised its warrant by purchasing 349,040 shares of restricted common stock at $0.29 per share. The price was based on eighty percent (80%) of the average of the five lowest volume weighted average prices of the Company's common stock during the twenty trading days prior to the date of exercise as determined by the provisions of the warrant enter into on May 19, 2006.
On October 6, 2006 the Company filed an amendment to its Articles of Incorporation, which provided for an increase in the number of shares that it is authorized to issue and the creation of a new class of stock. The company is now authorized to issue a total of 310,000,000 shares of stock, of which 300,000,000 shares are designated "Common Stock," $0.0001 par value, and 10,000,000 shares are designated "Class B Common Stock," no par value. As of June 30, 2007, 78,592,204 shares of common stock were outstanding.
On October 20, 2006, the Company's board of directors declared a stock dividend payable to each shareholder of record on October 27, 2006 equal to one share of Class B Common Stock for every twenty shares of Common Stock held by each shareholder.
For Investor Inquiries:
Philip Kranz
Dresner Corporate Services
312-780-7240
pkranz@dresnerco.com
David Gutierrez
Dresner Corporate Services
312-780-7204
dgutierrez@dresnerco.com
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