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I haven't heard my FAV yet ....
Don't know the name of it, (lots of individual instrumental separation) ...
Then again, they all do ...
Heeey ,, Stop-that ... !
Susie, I can't wait for his reply to THAT ... !
Try to take care of chipped2000 ... Seems like an alright guy ...! VERY GOOD '' BLOCK PARTY '' .. !!
Re: Indent > I thot that wuz pretty-good, considering I'm a dumb ol' kuntry boy .....
I'm glad the subject came up, so I would learn how to do it ...
(for me) just hold the Alt-key & space-bar to desired indentation ....
NO-Indent
Indent
Indent
tee,
hee .... !!
Never mind, I figured it out ... !!
no indent
indent
indent ....!!
(hope this works) ....
I have to run, but prolly b bak l8tr .... !!
Very-good, Wannabe ... !! .. Music's great ...
BreakingNews-- Kobe Bryant issues statement admitting adultery, saying he is innocent of sexual assault charge filed today. Watch CNN or log on to
BreakingNews@MAIL.CNN.COM (CNN Breaking News) Date: Fri, Jul 18, 2003, 5:06pm To: TEXTBREAKINGNEWS@CNNIMAIL12.CNN.COM Subject: CNN Breaking News Reply to: newseditor@MAIL.CNN.COM
-- Felony sexual assault charge filed against NBA star Kobe Bryant in Eagle County, Colorado. Watch
CNN or log on to http://CNN.com (AOL Keyword: CNN) for the latest news.
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ADSX - Associated Press
New Chip Can Be Implanted in Humans
Friday July 18, 8:10 am ET
By Alonso Soto Joya, Associated Press Writer
U.S. Company Launches Implantable Tracking Chip in Mexico, Used to Confirm Health History and Identity
MEXICO CITY (AP) -- Borrowing from technology for tracking pets, a U.S. company on Thursday launched Mexican sales of microchips that can be implanted under a person's skin and used to confirm health history and identity.
The microchips, already available in the United States, could tap into a growing industry surrounding Mexico's criminal concerns. Kidnappings, robberies and fraud are common here, and Mexicans are constantly looking for ways to protect themselves against crime.
The microchip, the size of a grain of rice, is implanted in the arm or hip. Hospital officials and security guards use a scanning device to download a serial number, which they then use to access blood type, name and other information on a computer.
In a two-hour presentation, Palm Beach, Fla.-based Applied Digital Solutions Inc. introduced reporters to the VeriChip and used a syringe-like device and local anesthetic to implant a sample in the right arm of employee Carlos Altamirano.
"It doesn't hurt at all," he said. "The whole process is just painless."
Another chip user, Luis Valdez, who is diabetic, said the chip is "as innovative to me as the cell phone."
In the United States, the Food and Drug Administration has said it would not regulate the implant as long as it contains no medical data. Thus, the information is stored in a separate database and not on the chip itself. Although regulations are different in Mexico, the Mexican version of the chip will still use the database framework.
Antonio Aceves, the director of the Mexican company in charge of distributing the chip here, said that in the first year of sales, the company hoped to implant chips in 10,000 people and ensure that at least 70 percent of all hospitals had the technology to read the devices.
One chip costs $150 and has a $50 annual fee. The scanning device and related software cost $1,200. Users can update and manage their chips' information by calling a 24-hour customer service line.
Similar technology has been used on dogs and cats as a way to identify the pets if they are lost or stolen.
Company officials said they are working on developing similar technology that would use satellites to help find people who may have been kidnapped.
While the idea of using the chip to track people has raised privacy concerns in the United States, the idea has been popular with Mexicans.
For now, VeriChip can help confirm a kidnap victim's identity only after a body is found.
http://www.adsx.com
Japaneeeeze ... hee, hee ... Used to date one ...
Wonderful experience ......!
Dorothy Moore ....
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Teddy Pendergrass ......
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Stevie Wonder ......
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Stevie Wonder .....
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Otis ......
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Otis ......
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The Temptations .....
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The Temptations .....
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Marvin Gaye ......
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Four Tops .....
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Four Tops ......
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Otis ......
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Tonight w/b ALL Old Soul ..... - Manhattens
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Symbol Changes
ALRE ALREE Atlas Resources International, Inc. Common Stock 13:34 07/21/2003 AMCM AMCME AM Communications, Inc. Common Stock 13:34 07/21/2003 ASTV ASTVE Asia Premium Television Group, Inc. Common Stock 13:34 07/18/2003 ATPZE ATPTZ All State Properties, L.P. Limited Partnership Units 13:34 07/21/2003 BBAN BBANE BroadBand Wireless International Corporation Common Stock 13:34 07/21/2003 BERS BERSE Beres Industries, Inc. Common Stock 13:34 07/21/2003 CNGG CNGGE Cambridge Energy Corporation Common
Stock 13:34 07/21/2003 DMEC DMECE Diamond Entertainment Corporation Common Stock 13:34 0
ADSX - Press ReleaseSource: Applied Digital Solutions, Inc.
Applied Digital Solutions' Exclusive Mexico Distributor of Subdermal RFID VeriChip is Launching ``SOLUSAT MEDICA´´ to Promote VeriChip´s Healthcare Applications in Mexico
Thursday July 17, 9:17 am ET
Today's Kickoff Event and Press Conference Will Feature a Live "Chipping" Procedure for Local Media and Testimonials from VeriChip Users
PALM BEACH, Fla.--(BUSINESS WIRE)--July 17, 2003-- Applied Digital Solutions, Inc. (Nasdaq: ADSX - News), an advanced technology development company, announced today that its exclusive distributor of VeriChip(TM) products and services in Mexico is launching "SOLUSAT MEDICA", a special unit designed to promote the many healthcare-related applications of VeriChip in Mexico.
VeriChip is a secure, subdermal, radio frequency identification (RFID) microchip about the size of a grain of rice that can be used in a variety of security, financial, emergency identification and other applications. In October 2002, the US Food and Drug Administration (FDA) ruled that VeriChip is not a regulated device with regard to its security, financial, personal identification/safety applications but that VeriChip's healthcare information applications are subject to regulation by the FDA in the United States. In other countries, including Mexico, the regulatory status of VeriChip quite often differs from the treatment the technology has received by regulators in the United States.
The kickoff event and press conference, scheduled to begin today at 8:45 a.m. (CT) at the Camino Real Hotel in Mexico City, will feature a live "chipping" procedure, along with testimonials from four additional people who have been "chipped" recently in Mexico. The press conference will also include presentations about SOLUSAT MEDICA's plans for marketing VeriChip to the healthcare community in Mexico.
Approximately 40 TV, radio and print journalists are expected to cover the press conference and live "chipping" - a simple, outpatient procedure that requires only a few minutes for a local anesthetic and insertion of the chip with a specially designed needle.
SOLUSAT MEDICA is reaching out to private and public hospitals in Mexico to incorporate VeriChip scanners in their emergency facilities. SOLUSAT is also holding discussions to build commercial and strategic relationships in Mexico to demonstrate the benefits of using all applications of VeriChip's innovative personal verification technology. According to SOLUSAT, discussions are underway for the donation of scanners to institutions such as the Red Cross and the Mexican Alzheimer's Association and several other public organizations.
Commenting on the launch of SOLUSAT MEDICA in Mexico, Antonio Aceves, Director General of SOLUSAT, said: "Without a shadow of a doubt, this application will give VeriChip users confidence and peace of mind. In a matter of seconds, it provides extremely important information in the event of an emergency and regardless of the condition of the patient, information that could mean the difference between life and death. And it doesn't matter if the patient has a prior medical condition or not, because we're all susceptible to accidents and health crises."
As previously announced, in the first quarter of 2003 the Company completed initial VeriChip product shipments to SOLUSAT of 1,000 implantable VeriChips and 100 proprietary scanners. The exclusive distribution agreement calls for a minimum purchase quota in excess of $9 million through the end of 2006. If annual minimum sales quotas are met, SOLUSAT will retain the exclusive right to distribute VeriChip and related products in Mexico.
During the Mexico City press conference, VeriChip users whose medical data is available on the SOLUSAT MEDICA secure database will provide testimonials regarding the product. These VeriChip users include Manuel Rosillo, a musician with a heart condition; Francisco Pujano, a 32-year-old salesman who suffered a cerebral aneurysm at the age of 28; Luis Valdez, a bio-chemical engineer with Type I diabetes; and Marcos Escandon, who has been injured in several of motorcycle accidents.
Quote from VeriChip user, Mr. Manuel Rosillo: "I used to lead a normal, active life and although I suffered from a lot of work-related stress, I never imagined I'd have a health problem as serious as this at my age. So far, I've suffered two heart attacks that have put my life at risk. I've undergone heart surgery and I'm under permanent treatment and medical supervision, which makes VeriChip an extremely useful product for me."
Quote from VeriChip user, Mr. Francisco Pujano: "I was extremely interested in having a VeriChip implant after suffering a cerebral aneurysm. When I have an attack, I don't remember where I am or understand what's happening around me, and it can sometimes last for a long time, so for safety reasons, I opted for VeriChip."
Quote from VeriChip user, Mr. Luis Valdez: "I have been in situations where a lack of information has put my life at risk. I once suffered a diabetes attack in the street while visiting another city. I practically dropped down dead in a diabetic coma. Fortunately, the paramedics didn't hook me up to a glucose drip, as that would have cost me my life. This technology gives me peace of mind and confidence, because it provides information about who I am, what is wrong with me and who to contact in a similar situation."
Quote from VeriChip user, Mr. Marcos Escandon: "Fortunately, I don't have any medical ailments, but I've been unlucky enough to be involved in a couple of serious accidents that have landed me in an emergency room. I didn't think twice about having a VeriChip implanted, after witnessing the distress caused to my family when they couldn't find me, plus the risk of being attended to by a doctor who doesn't know whether I have a medical condition or not. This way I'll always be sure to have my identity and my medical data on me."
In April 2003, a representative of VeriChip Corporation outlined VeriChip's many potential healthcare-related applications at the IDTechEx "Smart Tagging in Healthcare" conference in London (for more information, visit www.idtechex.com/healthcare.html). Subject to FDA regulation in the United States, these applications include:
Implanted medical device identification
Emergency access to patient-supplied health information
Portable medical records access
In-hospital patient identification
Medical facility connectivity via patient
Patient/therapy integration
Inter-facility patient identification
Disease/treatment management of at-risk populations
About SOLUSAT
Soluciones de Localizacion Satelital, S. de R.L. de C.V. (SOLUSAT), a subsidiary of Sistemas de Proteccion Integral de Mexico, S.A. de C.V. (SPIMSA), was founded in October 2002 and is the exclusive marketer and distributor for VeriChip in Mexico. Antonio Aceves, Director General of SOLUSAT, can be reached by telephone (52 34 94 54) or email (antonio.aceves@solusat.com.mx). For more information about SOLUSAT and SOLUSAT MEDICA, visit www.solusat.com.mx.
About VeriChip(TM)
VeriChip is a subdermal, radio frequency identification (RFID) device that can be used in a variety of security, financial, emergency identification and other applications. About the size of a grain of rice, each VeriChip product contains a unique verification number that is captured by briefly passing a proprietary scanner over the VeriChip. A small amount of radio frequency energy passes from the scanner energizing the dormant VeriChip, which then emits a radio frequency signal transmitting the verification number. In October 2002, the US Food and Drug Administration (FDA) ruled that VeriChip is not a regulated device with regard to its security, financial, personal identification/safety applications but that VeriChip's healthcare information applications are regulated by the FDA. VeriChip Corporation is a wholly owned subsidiary of Applied Digital Solutions (Nasdaq: ADSX - News). For more information about VeriChip, visit www.adsx.com.
TRDY - TRUDY CORP (TRDY.OB)
Annual Report (SEC form 10KSB)
ITEM 6. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
The following discussion and analysis provides information which management believes is relevant to an assessment and understanding of the Company's results of operations and financial condition. This discussion should be read in conjunction with the financial statements and notes thereto included elsewhere herein.
Critical Accounting Policies
The Company maintains allowances for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments. Allowances for doubtful accounts are based on historical experience and known factors regarding specific customers and industries in which customers operate. If the financial condition of the Company's customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances would be required.
The Company writes down its inventories for estimated slow moving and obsolete goods equal to the difference between the carrying cost of the inventory and the estimated market value based upon assumptions about future demand and market conditions. A significant sudden increase in the demand for the Company's products could result in a short-term increase in the cost of inventory purchases while a significant decrease in demand could result in an increase in the amount of excess inventory quantities on-hand. Additionally, the Company's estimates of future product demand may prove to be inaccurate, in which case the Company may have understated or overstated the write-down required for excess and obsolete inventory. In the future, if the Company's inventory is determined to be overvalued, it would be required to recognize such costs in its cost of goods sold at the time of such determination. Likewise, if the Company does not properly estimate the lower of cost or market of its inventory and it is therefore determined to be undervalued, it may have over-reported its cost of goods sold in previous periods and would be required to recognize such additional operating income at the time of sale. Therefore, although the Company makes every effort to ensure the accuracy of its forecasts of future product demand, any significant unanticipated changes in demand could have a significant impact on the value of the Company's inventory and its reported operating results.
The Company's critical accounting policy(ies) is the amortization period and method of accounting for pre-publication costs.
Fiscal Year Ended March 31, 2003 Compared to Fiscal Year Ended March 31, 2002 -
Results of Operations -
NET SALES. Net sales for the year ended March 31, 2003 were $4,405,006 compared to $3,392,808 for the prior year ended March 31, 2002, an increase of $1,012,198 or 29.8%. Of the net sales figure for the year ended March 31, 2003, $3,637,699 are attributed to the Company's Soundprints division, compared to Soundprints' net sales of $3,392,808 for the year ended March 31, 2002, an increase of 7.2%. For Studio Mouse, LLC, the Company's subsidiary, net sales for the year ended March 31, 2003 were $1,175,952.
For the year ended March 31, 2003, the increase in Soundprints' overall net sales of $244,891 versus the prior fiscal year was broad-based across most sales divisions especially in book stores, among distributors and through education catalogers. Book store sales jumped 45.1% versus prior year sales from increased distribution as a result of the introduction of the paperback format within the popular Smithsonian Backyard and Oceanic Collection series. Education catalog sales increased 179.7% versus the prior year due to the addition of new accounts and the approval of 84 Soundprints titles as Accelerated Readers, which helped library distributors to promote Soundprints' titles to schools as supplemental instructional reading aids. Direct sales to consumers decreased 42.6% due to a reduced catalog mailing in the fiscal year ended March 31, 2003 versus the mailing for the prior fiscal year. Soundprints mailed 69.3% fewer catalogs in a planned effort to restructure the catalog creatively and mail more strategically to a refined, more targeted audience. Sales from Soundprints' direct mail catalog to consumers, schools and libraries for the year ended March 31, 2003 declined $186,696 or 29.9% versus the comparable prior year. While revenues were lower, the sales per catalog mailed increased significantly for the year ended March 31, 2003 to $.76/catalog from $.35/catalog for the year ended March 31, 2002, returning $.28 per catalog in net profit after catalog paper, printing and mailing expenses.
Soundprints sales in the Mass Market division decreased by $347,236 or 25.8% for the year ended March 31, 2003. In the August through October 2001 time frame, Soundprints received and shipped a large order to one of the largest of the three warehouse clubs. No such order was received for shipment in the middle of fiscal year 2003. Toy and gift stores, specialty retailers, and museums, zoos & aquariums posted sales increases of approximately 10% or more. These sales increases are attributed to the diversification of the Company's product range to include lower target age formats and content, and the significant increase in Soundprints' frontlist with the addition of the Studio Mouse imprint, which is distributed by Soundprints.
For Studio Mouse, net sales for the year ended March 31, 2003 were $1,175,952. Its major customers during the year included Advanced Marketing Services, Books Are Fun, Anderson Merchandisers, and Stewart House Publishing.
The Company continued to rebuild confidence among its vendors, sales force and customers and to expand its product offerings. In this regard, the following strategic actions have been taken over the past several years:
1. In the fiscal year ended March 31, 2000, a significant amount of creditor debt was settled either by 50% compromise or issuing Trudy common stock for the portion compromised. By July 2001, virtually all of the creditors whose debt had been compromised had placed the company back on credit terms.
2. In the fiscal year ended March 31, 2002 Trudy licensed a nursery rhyme property from a packager in the U.K. entitled Mother Goose in order to provide "critical mass" to the Company's publishing schedule. The Mother Goose acquisition enabled the company to take advantage of the interest and high awareness of popular nursery rhymes through highly creative illustrations, plush finger puppets and musical audio. A total of sixty illustrated rhymes and audio together with the character designs for creating plush finger puppets were purchased. In the fiscal year ended March 31, 2002 thirty rhymes were formatted into six illustrated 36 page "puffy padded" board books with CD and finger puppets, and in the fiscal year ended March 31, 2003, 30 more rhymes were formatted into an additional 36 page "puffy padded" board books with CD and finger puppets, as well as other appropriate formats.
3. In the fiscal year ended March 31, 2002 Trudy formed Studio Mouse LLC, a joint venture with Chart Studio (Pty) Ltd., a South African publisher, at an initial $50,000 investment in debt and equity. Studio Mouse's publishing charter was to service the United States mass market and worldwide English and foreign language markets at low cost with formats containing repurposed high quality content from both partners, shipped FOB factory origin on a non-returnable basis.
On August 30, 2002, Trudy filed a report on Form 8-K, disclosing the restructuring of the ownership of Studio Mouse, LLC. A memorandum of understanding was executed between the Registrant, Studio Mouse, LLC, The Chart Studio (Pty) Ltd., and Ashley C. Andersen, President of Studio Mouse and a Director of the registrant. Under the terms of the memorandum of understanding, the registrant increased its ownership of Studio Mouse, LLC to 95% from 45%. An amendment was subsequently filed to include the financial statements of Studio Mouse, LLC.
4. The Company continued its cost reduction initiative in an attempt to locate book printers and plush suppliers with lower manufacturing costs without compromise to quality. Over the year such efforts resulted in savings 29% to 47% on reprints of back list book titles and plush purchases.
Trudy Corporation received 45% of Studio Mouse's net income on its consolidated income statement through August 19, 2002. Following the restructuring of the ownership agreement executed on August 20, 2002, Trudy accounts for Studio Mouse through consolidation.
COST OF SALES. The Company's cost of sales (which includes Studio Mouse LLC) for the year ended March 31, 2003 increased $805,153 from $1,827,946 in the prior year to $2,633,099, an increase of 44.0%. Cost of sales increased due to a 29.8% increase in net sales, and due to the acceptance of two orders from Stewart House and from the Christmas Tree Shops. Costs of goods for these two orders
were over 80% on revenue of $545,000. The cost of sales erosion came as a result of 43% lower revenue from consumer direct mail sales, which typically contributes to margins at the rate of 85% or more.
The company has made an aggressive effort to lower its toy, audio and book costs by awarding purchase orders for books and plush to new vendors. This initiative has lowered print costs on micro books, Soundprints' most popular selling format, by 47%. Purchase costs for the large format Oceanic and Backyard hardcover books have been reduced by 33% while costs for certain micro plush toys have decreased by 39%. For audio products, the company was successful in locating CD duplicators in Hong Kong who could deliver substantial savings versus purchase of similar products in the United States.
Soundprints' cost of sales for the year ended March 31, 2003 increased $468,747 to $2,296,694 from $1,827,946 for the comparable prior year. In the year ended March 31, 2002 Soundprints' inventory obsolescence was reduced by $240,000. While inventory obsolescence was reduced by $240,000 in 2002, the inventory provision increased by $81,517 in the year ended March 31, 2003 as a result of additional write-downs for inventory declared obsolete or slow moving in the fiscal year.
Increased costs of sales were also a result of large sales to both domestic and international customers with significantly lower margins than Soundprints' other sales divisions. While there was a decrease in sales to mass merchants, this was partly offset by an increase in international sales which had a cost of goods sold margin of 75.7% for the year ended March 31, 2003. Cost of sales increases as a percent of total sales was also a result of a smaller catalog mailing in the year ended March 31, 2003 which is historically one of the Company's most profitable divisions. As a percent of net sales, Soundprints' cost of sales for the year ended March 31, 2003 was 63.1% versus 53.9% for the comparable prior year.
In the year ended March 31, 2003, Soundprints focused on rebuilding the direct mail consumer and library business. The total mailing for the fall 2002 was 474,000 catalogs versus 1,400,000 catalogs mailed in fall 2001. While the more strategically-targeted mailings were profitable, the decrease in mailings resulted in lower overall sales for the year ended March 31, 2003. The gross margin contribution for the direct mail division, Soundprints' fourth-largest sales channel, decreased from 22.1% in the year ended March 31, 2002 to 12.3% for the current fiscal year.
Also included in cost of sales are fixed charges for warehouse salaries, amortization of design costs, assembly materials, miscellaneous production overhead costs and product development expense.
GROSS PROFIT. As a result of these changes in net sales and cost of sales, the Company's gross profit for the year ended March 31, 2003 increased 13.2% to $1,771,907 versus the prior year's gross profit of $1,564,862.
For Soundprints, gross profit decreased 14.3% or $223,856 from $1,564,862 for the year ended March 31, 2002 to $1,341,006 for the current fiscal year. The gross margin declined from 46.1% for the prior year to 36.9% for the year ended March 31, 2003. The current fiscal year's decline was due to sales to the mass market division and to the international division of lower margin product. The decline was also due in part to a decrease of higher margin direct mail revenue that was a result of the reduction of the number of catalogs mailed in the December, 2002 quarter versus the prior year's comparable quarter.
Studio Mouse's gross margin for the year ended March 31, 2003 was 42.1%, or $495,292.
SELLING, GENERAL & ADMINISTRATIVE COSTS. The Company's selling, general, and administrative costs increased 7.0% from $1,788,599 from the prior fiscal year to $1,913,212 for the year ended March 31, 2003.
While the Company has made good progress in managing its selling and administrative costs, its bad debt expense increased by $132,856 to $174,585 for the year ended March 31, 2003 versus the comparable prior year. In January, 2003 the Company received word of the bankruptcy of its largest international customer. Soundprints' receivable from such customer of $292,500 as well as Studio Mouse's receivable of $56,800 was thus deemed uncollectible to the extent of the amount not provided by credit insurance. The Company had credit insurance for the customer covering approximately 50% of the bad debt. In April, the Company received $170,000 from its credit insurance provider for this claim.
Soundprints' selling, general, and administrative expenses for the year ended March 31, 2003 decreased by 2.9% to $1,736,853 compared to $1,788,599 for the year ended March 31, 2002. The amortization costs associated with fewer direct mail catalogs printed and mailed decreased by 40.7%, or $187,410, to $272,658 for the year ended March 31, 2003 versus the prior year cost of $460,068. Royalty expense decreased by $107,583 to $130,624 for the year ended March 31, 2003, a 45.2% decline. This decrease was primarily due to lower sales of Smithsonian licensed books and toys and greater sales of Mother Goose products which bears a 50% lower royalty than Smithsonian products.
Soundprints' decreased selling, general, and administrative expenses for the year ended March 31, 2003 were also partly offset by increased salary expenses due to new permanent and temporary employees, as well as increased legal and accounting costs. Also, Soundprints' bad debt expense for the year ended March 31, 2003 increased by $102,856, to $144,585, an increase of 246.5% versus the prior fiscal year principally due to the bankruptcy of Soundprints' largest international customer.
Studio Mouse's selling, general, and administrative expenses for the year ended March 31, 2003 were $268,386, or 22.8% of net sales.
INTEREST EXPENSE. The Company's interest expense (net) for the year ended March 31, 2003 was $118,281, an increase of $74,309 over the comparable prior year.
Soundprints' interest expense (net) for the year ended March 31, 2003 increased to $103,575 from $43,972, an increase of $59,604. The increase in interest expense for the year ended March 31, 2003 was primarily a result of the reduction in interest income from customer accounts and a result of increased borrowing.
Studio Mouse's interest expense was $13,820 for the year ended March 31, 2003.
ROYALTY INCOME/EXPENSE. The Company's royalty income (net) for the year ended March 31, 2003 decreased by $259,727 to an expense of $47,179 versus an income of $212,548 for the comparable prior fiscal year.
The significant change in royalty income was a result of several factors. Less income was generated from sub-rights licensing in the current fiscal year versus the prior fiscal year. The Company did not enter into any new sub-licensing contracts in the current fiscal year. Furthermore, the Company received less subrights income resulting from the sale of fewer titles to Scholastic Book Clubs and foreign translation rights to international customers. Lastly, part of the increase in royalty expenses is attributable to the timing in which these expenses occurred.
OTHER INCOME/EXPENSE. The Company's other income for the year ended March 31, 2003 was $67,641 versus $1,818 for the prior fiscal year. The gain primarily reflects a reduction of previous periods' liabilities. Such liabilities were outstanding and were deemed to be unclaimed by the Company's creditors.
GAIN/LOSS IN EQUITY INVESTMENT. For the year ended March 31, 2003, Soundprints' operations reflect no gain or loss attributable to its equity investment versus a gain of $41,315 for the comparable prior fiscal year as a result of the Company's change in equity position, which changed the accounting for the investment.
NET INCOME/LOSS. As a result of the items discussed above, the Company's net loss for the year ended March 31, 2003 was $314,706 compared to a net loss of $40,171 for the comparable prior fiscal year.
Impact of New Accounting Pronouncements -
The Company is not aware of any recent accounting standards issued, but not yet required to be adopted by the Company, that would have a material effect on its financial position or results of operations.
Liquidity and Capital Resources -
The Company continues to experience a working capital deficiency and negative cash flow as it has staffed up to support future sales growth to a level that it anticipates to achieve profitability. While the Company has made considerable progress since the 2001 recapitalization, it has been difficult to meet its financial obligations as they become due, barring the receipt of an asset based line of credit from a commercial lending institution. In the fiscal year ended March 31, 2002, the Company received two six month term loans of $475,000 and $300,000 from a local bank, both of which were paid back as of July 24, 2002.
For the fiscal year ended March 31, 2003 the Company borrowed $1,331,000 from two principal shareholder/officers. The Company used the funds to pay its vendors, to cover a significant bad debt, and to finance the spring 2003 backlog of $873,141. The Company's backlog on June 30, 2003 was $503,803. On March 3, 2003, the Company executed an engagement letter with Delta Capital Group, LLC to provide assistance in seeking and securing financing and exploring strategic options.
For the year ended March 31, 2003 one principal shareholder/officer was repaid $169,434 relating to pre-existing loans. Subsequent to March 31, 2003, this principal shareholder/officer was repaid $31,000 relating to pre-existing loans. As the company continues to source products with new vendors in order to lower its product costs, it has done so at unfavorable credit terms in order to secure lower pricing for its books and plush. These vendors require payment terms.
The Company's ultimate ability to continue as a going concern is dependent upon the market acceptance of its products, an increase in revenues coupled with continuing licensing support from its primary licensor, the Smithsonian Institution, and positive cash flow. The Company believes that continued improvement in its sales and its ability to borrow money from its principal shareholder/officer, will be sufficient to allow the Company to continue in operation.
NEWS - !! ... LEEP (Pink) Leading Edge Earth Products Receives Patent
Thursday July 17, 7:46 am ET
CHICAGO, July 17 /PRNewswire-FirstCall/ -- Leading Edge Earth Products, Inc. (LEEP, Inc.), (Pink Sheets: LEEP - News) announced today that the U.S. Patent Office has issued Patent Number US 6,584,740 B2 for the company's Frameless Building System for exclusive use by LEEP, Inc. for seventeen years. The Abstract and complete Patent may be viewed by visiting http://www.leepinc.com/Patents.html.
This patent issuance combined with six other patents issued between 1996 and the present, completes an 11-year, $500,000 process to protect LEEP, Inc.'s technology in the United States. This patent was filed in 2002 in 16 other countries with the objective of obtaining patent protection for approximately 90% of the world's population.
Upon the anticipated August closing of its $26.4 million dollar Structured Funding, LEEP will be able to bring its "Revolutionary" patented LeepCore(TM) building product to the market. A 2003 designed LeepCore Universal Classroom meets all building codes in the U.S. for seismic, fire and wind resistance. Additionally, it is insect, water and mold resistant, highly insulated and lightweight. The initial target market is modular classroom manufacturers. The Los Angeles Times in an article dated November 27, 2002, stated that the Florida state constitutional amendment to reduce class size won voter approval in the November 5, 2002 election. According to the article, "Estimates for how much it will cost to bring Florida's public schools into conformity during the next eight-year phase, range from $8 to $27.5 billion. Up to 29,000 new classrooms will be needed." The California classroom market is approximately the size of the Florida market. LEEP plans to penetrate both Florida and California classroom markets with its Universal LeepCore Classroom because it is both cost and performance effective.
GTEC - LOS ANGELES, Jul 17, 2003 (BUSINESS WIRE) --
StereoVision Entertainment Inc. (OTCBB:SVSN) announces it has signed Genesis Technology Group Inc. (OTCBB:GTEC) to establish a presence for StereoVision in China. Genesis Technology will also distribute StereoVision's products to the Chinese consumers.
Genesis Technology is to receive a one time retainer of $5,000.00 in StereoVision's restricted stock, and a success fee of 10% of all cash flow from any opportunities resulting from Genesis Technology's efforts. StereoVision's Chief Executive Officer Jack Honour stated: 'With Genesis Technology's management and partners having been responsible for more than $650 million in successfully negotiated contracts in China over the past decade, StereoVision's very optimistic about the positive impact this new agreement could have on our future earnings.'
Genesis Technology Group Inc (http://www.genesis-technology.net) is a US public corporation traded on the Over The Counter Bulletin Board exchange. Genesis Technology Group Inc. (GTG) maintains offices in China, Germany, and the United States. Genesis Technology Group Inc has created a family of technology and service related entities, via acquisitions, partnerships, and joint ventures, with specific focus on the emerging markets in the Pacific Rim. Genesis Technology Group Inc develops, invests in, and operates technology and service related companies in the U.S. and China. A primary focus of Genesis Technology Group Inc has been in the entertainment and media management industries in China.
As the first U.S. based Trust Member of the Shanghi Technology Stock Exchange (STSE), Genesis Technology Group Inc has forged partnerships and alliances between foreign and Chinese companies. The STSE is a specialized equity capital market that serves all of China and the world. It provides services in property rights and equity financing for companies looking to enter the China market. The STSE provides flexible and convenient financing and investment services for various enterprises by means of technology rights and ownership. It supports the advancement of technological innovation, and brings optimal allocation of hi-tech and social resources, as well as the combination of talented people and tremendous networks.
StereoVision Entertainment Inc (http://www.stereovision.com) is a publicly traded multimedia company listed on the Over The Counter Bulletin Board exchange. StereoVision maintains offices at Sound City Center in Van Nuys, Ca. StereoVision has interests in three dimensional film, and video production, independent filmmaking and distribution, entertainment content acquisition, and music production, publishing, and distribution.
WNMI - ( fixn ) - Press ReleaseSource: Warning Talent
Warning Talent to Star in ''Lingerie Bowl 2004''
Thursday July 17, 4:30 am ET
BEVERLY HILLS, Calif.--(BUSINESS WIRE)--July 17, 2003--Warning Talent, a division of Warning Models Inc. (OTCBB:WNMI - News), is extremely excited to have secured contracts for 10 of the 16 girls for the "Lingerie Bowl 2004," a pay-per-view event set to take place during the 2004 Super Bowl.
The concept behind "Lingerie Bowl 2004" is to pit two teams of beautiful, athletic women against each other in a fiercely competitive seven-on-seven game of tackle football. Horizon Productions and Pay Per View carriers in over 90 countries are teaming up to produce the most anticipated worldwide event surrounding this year's Super Bowl.
Creator & Executive Producer Mitch Mortaza said, "We are incredibly fortunate to have a talent agency partner like Warning Talent to help us secure beautiful, athletic and confident women; our players will truly dictate the success and worldwide reach of Lingerie Bowl 2004."
Michelle Henderson, director of Warning Talent, added, "This is an amazing opportunity for the girls, who will become overnight media darlings, as well as also provide an opportunity for them to make a lot of money."
About Warning Model Management, Inc.
Warning Model Management, Inc. (publicly traded OTCBB symbol WNMI) is a full service model and talent agency. The company develops and supplies models (both male and female) for assignment to a variety of jobs, including but not limited to fashion editorials for nearly every magazine in the world, for catalogues, newspaper advertisements, for advertising clients for use in magazines, posters, websites, billboards, bus sides, look books and many other outlets. We also provide models and actors for all forms of TV work as well as industrial videos and in some cases personal appearances and promotions.
Warning differed from all LA agencies by providing to the industry in LA a level of talent previously only found in New York and Paris. We have achieved this by focusing on those clients that use LA as a location rather than a base and making available the talent they require here saving them (in many cases) the expense of having to fly those models in. We can do this by the advancement and application of an interactive website that has made the old ways of transporting bulky portfolios by messenger obsolete. What took days before can be done in seconds from anywhere in the world.
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