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Waited for 2 days and decided to avg down a bit with those low 30s shares. MM, you can move the price back up now. :)
This is depressing and annoying. While I didn't think its a Pump and Dump penny scam before, we are in the same boat where our investment is potentially worth nothing. I emailed the company a few weeks back and got a standard response with no new info.
Come on Scott, you owe us an update from April 2015's PR. See quote below. Now where is the second announcement on all the "things" that were accelerating???? If things were stalled, own up as the CEO of the firm. Silence only makes you look really bad and guilty of what others accused you of.
"Things are beginning to accelerate for Sarissa and Nio-Star, which is now rapidly moving along its development path. This is the first of several announcements regarding the achievement of significant milestones that will be forthcoming over the next several weeks," according to Sarissa CEO Scott Keevil.
Are we there yet? Some sort of stockholder update, straight from the company, before the end of the year would be nice.
AS is now 250 millions not 1 billion.
DALLAS, TEXAS--(Marketwired - Oct. 24, 2013) - Rango Energy Inc. (OTCBB:RAGO), an oil and gas exploration and development company.
The issuer has decided that it is in the best interest of the corporation to amend the following corporate action dated October 7, 2013, which was to increase the authorized capital from 150,000,000 shares to 1,000,000,000.
The Board of Directors has resolved that the company will only increase the authorized by an additional 100,000,000, for a total authorized capital of 250,000,000.
Ouch, back from an 1 week vaca and walk into GTLL hell. lol
Hoping for better day tomorrow.
Secured Digital Updates Shareholders On Corporate Vision and Restructuring Plans
http://finance.yahoo.com/news/Secured-Digital-Updates-pz-
297897343.html?x=0&.v=1
Secured Digital Updates Shareholders On Corporate Vision and Restructuring Plans
Company Reiterates 2009 Financial Guidance
Press Release
Source: Secured Digital Applications, Inc.
On 9:10 am EDT, Friday October 16, 2009
Buzz up! 0 Print.
NEW YORK, Oct. 16, 2009 (GLOBE NEWSWIRE) -- Secured Digital Applications, Inc. (Pink Sheets:SDGL - News) today announced the Company had implemented a comprehensive plan to improve the Company's business and to enhance shareholder value. The plan involved the transfer of SDGL's income generating Asian mobile communication and security related applications divisions to two Malaysian subsidiaries ("Malaysian subsidiaries") and disposal of the Company's investment in V-Mobile Communications Pty Ltd. Australia at the historical cost of $1.385 million.
The first subsidiary, Juta Ketara Sdn Bhd, will handle mobile communication applications while the second subsidiary, Access Heritage Sdn Bhd, will handle security related applications.
The Company also announced that for fiscal year 2009, the Malaysian subsidiaries are expected to generate:
* Revenues in the range of $38.5 million to $41.5 million; and
* Net income in the range of $2.0 million to $2.6 million
The restructure is intended to be a precursor to either independently list the companies on the OTC Bulletin Board or to merge with U.S. listed companies. SDGL will only consider merging with companies that are synergistic to the businesses of the respective Malaysian companies and have a track record of being able to align their price performance with their business success.
The Restructure
A thorough review of SDGL's portfolio was conducted by the Company's Board of Directors before it was determined that separating the mobile communications and security related applications divisions in Asia from the U.S. holding company will give the best return to SDGL's shareholders. The separation will allow the Malaysian subsidiaries to operate independently and be allowed to thrive under their own management focus and long-term growth plans. It will also allow the subsidiaries to create more long-term value individually than through the combined entities.
Proceeds from the disposal of V-Mobile's shares will be used to fund the restructure and expansion of the Malaysian subsidiaries to cope with a strong backlog of new orders secured between June and September this year.
Reasons for the Restructure
The Company believes that the restructure will allow management of the respective Malaysian subsidiaries to design and implement corporate strategies and policies that are based primarily on the business characteristics of the independent companies. It will further allow the companies to maintain a sharper focus on their core business and growth opportunities, and concentrate their financial resources wholly on their own operations. The U.S. holding company has hitherto subsisted entirely on funds generated from the Asian operations as illustrated in the table below.
Financial Performance of SDGL 2003 to 2008
Total
2003 -
Year * 2003 * 2004 * 2005 * 2006 * 2007 **2008 2008
US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000
Revenue
U.S. -- -- -- 875 930 -- 1,805 1%
Asia 15,858 20,438 24,190 35,769 46,797 59,395 202,447 99%
------------------------------------------------------
Total
Revenue 15,858 20,438 24,190 36,644 47,727 59,395 204,252 100%
GP
U.S. -- -- -- 613 465 -- 1,078 6%
Asia 1,822 2,159 1,794 2,186 3,861 4,533 16,355 94%
------------------------------------------------------
Total GP 1,822 2,159 1,794 2,799 4,326 4,533 17,433 100%
Expenses
U.S. 321 811 768 1,450 1,034 885 5,269 37%
Asia 597 808 650 1,132 1,612 4,224 9,023 63%
------------------------------------------------------
Total
expenses 918 1,619 1,418 2,582 2,646 5,109 14,292 100%
Operating
Income
U.S. (321) (811) (768) (837) (569) (885) (4,191)
Asia 1,225 1,351 1,144 1,054 2,249 309 7,332 4%
------------------------------------------------------
Total
Income 904 540 376 217 1,680 (576) 3,141 2%
------------------------------------------------------
* as per Form 10K
** Audited but not filed
1) Total combined revenue from 2003 - 2008 was $204,252,000. Our
Asian operations contributed $204,447,000 or 99% of the total
combined revenue.
2) Total combined gross profit from 2003 - 2008 was $17,433,000.
$16,355,000 was attributed to our Asian operations with the
remaining $1,078,000 or 6% from the U.S.
3) Total combined expenses from 2003 - 2008 was $14,292,000.
$9,023,000 or 63% was incurred by the Asian operations while
$5,269,000 or 37% was incurred by the U.S.
"The resulting initiatives announced today are a comprehensive approach to manage the Company for the future," said Patrick Lim, Chairman and CEO. "We have taken pre-emptive strategic actions to improve the Company's performance and highlight the value of the Malaysian subsidiaries."
Patrick Lim continued, "The strategic initiatives reflect the evolution of our business and represent the most effective way to enhance value for SDGL's shareholders. SDGL will complete the restructuring as quickly as possible, and emerge as a stronger and more competitive company."
In arriving at a decision to restructure the Company, SDGL's Board of Directors have given due consideration to the sound business network and goodwill that the Company has established in Asia and the opportunities opened to the Company as Asia begins to lead the world out of the global financial crisis.
According to a recent report released by the Asian Development Bank:
* Asia's economy is poised to grow by 3.9 percent in 2009 and the
projection for 2010 increased to 6.4 percent from 6 percent.
* China is likely to record growth of 8.2 percent during 2009 with
a surge in bank lending and fixed asset investment pushing
growth 1.2 percentage points higher than its forecast in March
2009. Recovery is expected to be sustained with China's growth
rate rising 8.9 per cent in 2010.
The Company is confident that the groundwork laid in China by its management team during the past two years has positioned the Company to benefit from China's growth and will continue to add to the $8.3 million contracts secured in China between January and May this year.
SDGL's directors have also weighed the reasons for the restructure and other benefits it is expected to bring against the negative impacts, including the cost of the restructure and the increased costs of maintaining SDGL and the Malaysian subsidiaries as separate companies. The Board concluded that the reasons and benefits far outweigh the negative impacts and elected to proceed with the restructure.
About Secured Digital Applications, Inc.:
Secured Digital Applications, Inc. is a provider of mobile communication, business process outsourcing and multimedia content production services. The Company's business is organized under two divisions. The first division is involved in multimedia production, information technology, computing consulting and business process outsourcing services. The second division is focused on mobile VoIP, mobile advertising, sale of smarthome and biometric security hardware, sale of Bluetooth, Global Positioning System and Radio Frequency Identification enabled applications. The target market for the Company's products and services include customers from the United States, Asia and Australia. For more information, please visit www.digitalapps.net and www.sdawmedia.com. Information on our websites does not comprise a part of the press release.
Safe Harbor Statement:
Information contained in this press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the use of forward-looking terminology such as "believes," "expects," "is expected," "intends," "may," "will," "should," "anticipates," "plans" or the negative thereof. These forward-looking statements often include forecasts and projections for future revenue and/or profits and are subject to revision and are not based on audited results. Forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause actual results to vary materially from historical results or from any future results expressed or implied in such forward-looking statements. Such risks and uncertainties include, but are not limited to, economic downturns, failure to achieve anticipated short- and long-term financial benefits from our business, failure to achieve market demand and acceptance for our products and services and failure to generate sufficient capital or to obtain financing to fund our operations and growth. The Company does not undertake to update, revise or correct any forward-looking statements. Investors are cautioned that current results are not necessarily indicative of future results, and actual results may differ from projected amounts. For more complete information concerning factors that could affect the Company's results, reference is made to the Company's registration statements, reports and other documents filed with the Securities and Exchange Commission.
Contact:
Secured Digital Applications, Inc.Kamaruddin Bujangdin@digitalapps.net
My 50k AON of .22 was filled at .21
when the bid/ask was .21/.22? Guess I was lucky. B/A raised to .22/.26 soon after the fill. :)
Yes. Just my 2 cents.
To answer your last quest, a company can have multiple clients. SRSR is not a big enough client to pay for an IR firm's overall operating expanses. IMHO of course.
OT: Thanks TK on your comment. May add a little more if it deeps below 3. RDN seemed like a good one! Bought some at .9 and sold in high 1s. Fold too soon.. I am now putting those gains back to RDN again. :P
Last post on RDN. Now lets get back to SDGL.
Nice news. Would love to see PPS trend upward again as well.
OT. I think you may be in RDN based on your post on some other board a while ago. What do you think of the sell off in the last couple of days. Got in too early at EOD yesterday. Thought about average down but afraid pps will continue to fall along with FRE. With some good market news, I see it continues to bounce BUT you never know.. abk seemed to be a better bounce play compares to rdn in the last month or so.
10-Q Quarterly Report
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark one)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2008
or
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from _____________ to ___________
Commission File Number: 0-25658
SECURED DIGITAL APPLICATIONS, INC.
(Exact name of registrant as specified in its charter)
DELAWARE 84-1357927
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
230 PARK AVENUE, 10TH FLOOR, NEW YORK, NY 10169
(Address of principal executive offices) (Zip Code)
(212) 551 1747
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
[X] Yes [ ] No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of "large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act. (Check one):
Large accelerated filer [ ] Accelerated filer [ ] Non-accelerated filer [ ] (Do not check Smaller reporting company [X] if a smaller reporting company)
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
[ ] Yes [X] No
The number of shares outstanding of the registrant's common stock as of August 14, 2008: 142,726,314 shares of common stock, par value $0.00001 per share.
1
FORM 10-Q
2ND QUARTER
INDEX
Page
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
Condensed consolidated balance sheets at June 30, 2008
(Unaudited) and December 31, 2007 (Audited) 4 - 5
Condensed consolidated statements of income and comprehensive income for the three and six months ended June 30, 2008 and 2007 (Unaudited) 6 - 7
Condensed consolidated statements of cash flows for the six months periods ended June 30, 2008 and 2007 (Unaudited) 8
Notes to condensed consolidated financial statements (Unaudited) 9 - 12
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 13 - 17
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 18
ITEM 4(T). CONTROLS AND PROCEDURES 18
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS 19
ITEM 1A. RISK FACTORS 19
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS 19
ITEM 3. DEFAULTS UPON SENIOR SECURITIES 19
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS 19
ITEM 5. OTHER INFORMATION 19
ITEM 6. EXHIBITS 19
SIGNATURES 20
2
SAFE HARBOR STATEMENT
This quarterly report on Form 10-Q and the documents incorporated herein by reference, contain or may contain forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Information is provided that is based upon beliefs of, and information currently available to, the management of Secured Digital Applications, Inc. (the "Company"), as well as estimates and assumptions made by the Company's management. The Company is including this cautionary statement in this Form 10-Q to make applicable and to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 for any forward-looking statements made by or on behalf of us. Statements that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements can be identified by the use of forward-looking terminology such as "believes," "may," "should," "anticipates," "estimates," "expects," "future," "intends," "hopes," "plans," "projects" or the negative thereof. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause actual results of the Company to vary materially from historical results or from any future results expressed or implied in such forward-looking statements. For a discussion identifying risk factors and other important factors that could cause actual results to differ materially from those anticipated, see the Company's Annual Report on Form 10-K for the year ended December 31, 2007, as amended.
These factors include, among others, the following: the inability of the Company to successfully implement its business plans, the cancellation or postponement of contracts that the Company has entered into in connection with its business, the inability to obtain services provided by other companies or service providers, the inability of the Company to raise capital on a timely basis, the inability of the Company to meet certain covenants contained in trade financing agreements, existing and future government regulations, changes and fluctuation in foreign currency exchange rates, the failure to retain qualified personnel, competitive pressures and potentially adverse tax and cash flow consequences resulting from operations in multiple countries with different laws and regulations, and the general economic and business conditions in Malaysia, China, the United States and the other countries in which we do business, primarily in Asia. The Company does not undertake to update, revise or correct any forward-looking statements.
3
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
SECURED DIGITAL APPLICATIONS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
JUNE 30, 2008 AND DECEMBER 31, 2007
June 30, December 31,
2008 2007
---------------- -------------------
(Unaudited)
ASSETS
Current assets:
Cash $ 26,123 $ 40,385
Trade and other accounts receivable 11,050,766 8,902,465
less allowance for doubtful accounts of $28,178 and $27,699, respectively
Prepaid expenses 20,106 18,539
---------------- -------------------
Total current assets 11,096,995 8,961,389
Property and equipment, net 3,331,608 3,718,150
Trademark 15,343 --
Goodwill 471,260 471,260
---------------- -------------------
$ 14,915,206 $ 13,150,799
================ ===================
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of capital lease obligations $ 36,250 $ 35,634
Accounts payable 546,022 531,133
Accrued expenses 146,901 209,877
Amount due to an affiliated company 66,017 23,668
Amount due to a director 8,786 88,632
Income tax payable 190,321 47,151
---------------- -------------------
Total current liabilities 994,297 936,095
Deferred tax 644,716 461,525
---------------- -------------------
Total liabilities 1,639,013 1,397,620
---------------- -------------------
(continued)
4
SECURED DIGITAL APPLICATIONS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED)
JUNE 30, 2008 AND DECEMBER 31, 2007
June 30, December 31,
2008 2007
---------------- -------------------
(Unaudited)
Minority interest 443,801 218,016
---------------- -------------------
Commitments
Stockholders' equity:
Series B convertible preferred stock, $0.10 par value; 10,000 10,000
1,000,000 shares authorized; 100,000 shares issued and outstanding,
liquidation preference $2,500,000
Common stock, $0.00001 par value: 1,434 1,375
350,000,000 shares authorized; 145,352,094 shares issued and
142,476,314 shares outstanding in 2008 and 143,172,594 shares
issued and 137,796,814 shares outstanding in 2007
Additional paid-in capital 8,104,213 7,665,244
Options 26,136 73,561
Warrants 975,337 953,643
Common treasury stock - at cost, 2,875,780 shares in 2008 and 5,375,780
shares in 2007 -- --
Deferred compensation (239,250) --
Retained earnings 3,417,694 2,280,005
Accumulated other comprehensive income 536,828 551,335
---------------- -------------------
Total stockholders' equity 12,832,392 11,535,163
---------------- -------------------
Total liabilities and stockholders' equity $ 14,915,206 $ 13,150,799
================ ===================
See notes to condensed consolidated financial statements
5
SECURED DIGITAL APPLICATIONS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
AND COMPREHENSIVE INCOME
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2008 AND 2007
(Unaudited)
Three months ended June 30, Six months ended June 30,
2008 2007 2008 2007
---------- ---------- ---------- ----------
Revenues :
Services :
Related Parties $ 768,443 $ 558,228 $ 1,613,253 $ 860,110
Others 13,941,319 10,451,982 27,605,870 20,520,902
---------- ---------- ---------- ----------
14,709,762 11,010,210 29,219,123 21,381,012
---------- ---------- ---------- ----------
Cost of revenues :
Services :
Related Parties 230,534 167,469 483,977 258,033
Others (includes a related party of
$5,996,339, $4,383,252, $12,001,675 and
$8,475,822, respectively.) 13,277,296 9,952,718 26,290,757 19,542,329
---------- ---------- ---------- ----------
13,507,830 10,120,187 26,774,734 19,800,362
---------- ---------- ---------- ----------
Gross profit 1,201,932 890,023 2,444,389 1,580,650
---------- ---------- ---------- ----------
Operating expenses:
Sales and marketing 11,079 3,240 26,748 7,124
General and administrative:
Related parties 37,465 36,973 74,892 73,808
Others 524,914 386,419 1,006,098 785,737
---------- ---------- ---------- ----------
Total operating expenses 573,458 426,632 1,107,738 866,669
---------- ---------- ---------- ----------
Income from operations 628,474 463,391 1,336,651 713,981
---------- ---------- ---------- ----------
Other income (expense):
Gain (loss) on foreign currency transactions (10,910) (1,134) 164,463 109,818
Purchase preacquisition income (13,928) -- (13,928) --
Previously deferred gain on sale of
technology,related parties -- 30,459 -- 55,749
Other income 3,378 2,615 3,378 5,178
---------- ---------- ---------- ----------
(21,460) 31,940 153,913 170,745
---------- ---------- ---------- ----------
Income before provision for income taxes and
minority interest 607,014 495,331 1,490,564 884,726
Provision for income taxes (146,203) (153,388) (321,246) (216,897)
---------- ---------- ---------- ----------
Income before minority interest 460,811 341,943 1,169,318 667,829
Minority interest (22,579) (7,571) (31,630) (13,692)
---------- ---------- ---------- ----------
Income from continuing operations 438,232 334,372 1,137,688 654,137
---------- ---------- ---------- ----------
Discontinued operations:
Loss from discontinued operation - net of
minority interest and income taxes -- (8,583) -- (17,248)
Gain on disposal of discontinued
subsidiaries -- 22,984 -- 22,984
---------- ---------- ---------- ----------
Income from discontinued operations -- 14,401 -- 5,736
---------- ---------- ---------- ----------
Net income $ 438,232 $ 348,773 $ 1,137,688 $ 659,873
========== ========== ========== ==========
6
SECURED DIGITAL APPLICATIONS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
AND COMPREHENSIVE INCOME
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2008 AND 2007
(Unaudited)
Three months ended June 30, Six months ended June 30,
2008 2007 2008 2007
----------- ----------- ----------- -----------
Net income $ 438,232 $ 348,773 $ 1,137,688 $ 659,873
Other comprehensive income:
Foreign currency translation adjustments (24,508) (565) (14,507) 57,786
----------- ----------- ----------- -----------
Comprehensive income $ 413,724 $ 348,208 $ 1,123,181 $ 717,659
=========== =========== =========== ===========
Net income per common share:
Basic ** $ * $ * $ 0.01 $ *
=========== =========== =========== ===========
Diluted ** $ * $ * $ 0.01 $ *
=========== =========== =========== ===========
Weighted average shares outstanding:
Basic 141,902,138 130,807,803 140,154,951 130,026,288
=========== =========== =========== ===========
Diluted 165,351,336 154,817,144 163,206,980 154,923,321
=========== =========== =========== ===========
* Less than $0.01 per share.
**Net income per common share for discontinued operations is less than $0.01 per
share and not presented separately.
7
SECURED DIGITAL APPLICATIONS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2008 AND 2007
(Unaudited)
Six months ended June 30,
2008 2007
--------- ---------
CASH FLOWS FROM OPERATING ACTIVITIES
Change in operating assets and liabilities of continuing
operations $ 48,665 $ 43,319
Change in operating assets and liabilities of discontinued
operations -- (184)
--------- ---------
Net cash provided by operating activities 48,665 43,135
--------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property and equipment (9,165) (6,274)
Purchase of trademark (15,343) --
--------- ---------
Net cash used in investing activities (24,508) (6,274)
--------- ---------
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuances of shares of common stock 109,000 --
Proceeds from advances from affiliated company 41,981 70,098
Proceeds from advances from a director -- 4,567
Repayments of loans from a director (81,175) --
--------- ---------
Net cash provided by financing activities 69,806 74,665
--------- ---------
FOREIGN CURRENCY TRANSLATION ADJUSTMENT
- continuing activities (108,225) (103,240)
- discontinued activities -- 661
--------- ---------
Net (decrease) increase in cash (14,262) 8,947
Cash, beginning of period 40,385 7,644
--------- ---------
Cash, end of period $ 26,123 $ 16,591
========= =========
See notes to condensed consolidated financial statements
8
SECURED DIGITAL APPLICATIONS, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 2008
(UNAUDITED)
NOTE 1: BASIS OF PRESENTATION
The accompanying unaudited consolidated financial statements of Secured Digital Applications, Inc. (the "Company") have been prepared in accordance with generally accepted accounting principles for interim financial information and with Item 10-1 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the six months ended June 30, 2008, are not necessarily indicative of the results that may be expected for the year ending December 31, 2008. These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and footnotes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2007, as filed with the United States Securities and Exchange Commission (the "SEC").
NOTE 2: RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS
In December 2007, the FASB issued SFAS No. 160, Non-controlling Interests in Consolidated Financial Statements - an amendment of ARB No. 51 ("SFAS 160"). SFAS 160 requires companies with non-controlling interests to disclose such interests clearly as a portion of equity but separate from the parent's equity. The non-controlling interest's portion of net income must also be clearly presented on the income statement. SFAS 160 is effective for financial statements issued for fiscals years beginning after December 15, 2008 and will be adopted by the Company in the first quarter of fiscal year 2009. The Company does not expect that the adoption of SFAS 160 will have a material impact on our financial condition or results of operation.
In December 2007, the FASB issued SFAS No. 141(R), Business Combinations (revised 2007) ("SFAS 141(R)"). SFAS 141(R) applies the acquisition method of accounting for business combinations established in SFAS 141 to all acquisitions where the acquirer gains a controlling interest, regardless of whether consideration was exchanged. Consistent with SFAS 141, SFAS 141(R) requires the acquirer to fair value the assets and liabilities of the acquiree and record goodwill on bargain purchases, with main difference the application to all acquisitions where control is achieved. SFAS 141(R) is effective for financial statements issued for fiscal years beginning after December 15, 2008 and will be adopted by the Company in the first quarter of fiscal year 2009. The Company does not expect that the adoption of SFAS 141(R) will have a material impact on our financial condition or results of operation.
In March 2008, the FASB issued SFAS No. 161, Disclosures about Derivative Instruments and Hedging Activities, - an amendment of FASB Statement No. 133 ("FAS 161"). FAS 161 requires enhanced disclosures about an entity's derivative and hedging activities and thereby improves the transparency of financial reporting. The objective of the guidance is to provide users of financial statements with an enhanced understanding of how and why an entity uses derivative instruments; how derivative instruments and related hedged items are accounted for; and how derivative instruments and related hedged items affect an entity's financial position, financial performance, and cash flows. FAS 161 is effective for fiscal years beginning after November 15, 2008. Management is currently evaluating the impact FAS 161 will have on the Company's consolidated financial statements, but it currently does not expect the effect to be material.
In May 2008, the FASB issued SFAS No. 162, "The Hierarchy of Generally Accepted Accounting Principles ("SFAS No. 162"). SFAS No. 162 identifies the sources of accounting principles and provides entities with a framework for selecting the principles used in the preparation of financial statements that are presented in conformity with GAAP. The FASB believes the GAAP hierarchy should be directed to entities because it is the entity (not its auditors) that is responsible for selecting accounting principles for financial statements that are presented in conformity with GAAP. The adoption of SFAS No. 162 is not expected to have a material impact on the Company's financial statements.
9
NOTE 3: NET INCOME PER COMMON SHARE
The Company computes earnings per share in accordance with the provisions of SFAS No. 128, Earnings per Share ("SFAS 128"). Under the provisions of SFAS 128, basic net income per share is computed by dividing net income by the weighted average number of common shares outstanding during the period presented. Diluted net income per share reflects the potential dilution that could occur from common stock issuable through stock based compensation including stock options, restricted stock awards, warrants and other convertible securities. The calculation of basic and diluted earnings per share is as follows (in thousands, except per-share amounts):
Three Months Ended Six Months Ended
(Unaudited) June 30, June 30, June 30, June 30,
2008 2007 2008 2007
------- ------- --------- -------
Net income $ 438 $ 349 $ 1,138 $ 660
======= ======= ========= =======
Weighted average shares outstanding - basic 141,902 130,808 140,155 130,026
======= ======= ========= =======
Net income per share - basic $ * $ * $ 0.01 $ *
======= ======= ========= =======
Weighted average shares outstanding - basic 141,902 130,808 140,155 130,026
Common stock issuable to consultant 1,247 4,009 667 4,622
Convertible preferred stock 20,000 20,000 20,000 20,000
Dilutive stock options and warrants 2,202 -- 2,385 275
------- ------- -------------- -------
Weighted average shares outstanding - diluted 165,351 154,817 163,207 154,923
======= ======= ========= =======
Net income per share - diluted $ * $ * $ 0.01 $ *
======= ======= ========= =======
* Less than $.01 per share
** Net income per common share for discontinued operations is less than $.01 per
share and not presented separately.
There are options to purchase 460,000 shares of the Company's common stock at each of the three and six months ended June 30, 2008 and options to purchase 3,080,000 shares of the Company's common stock at each of the three and six months ended June 30, 2007 that were excluded from the calculation of earnings per share as their issuance prices were in excess of the average market price for the period. For the three months ended June 30, 2008 and 2007, 4,600,000 and 10,900,000 warrants were excluded in the calculation of earnings per share as their issuance prices were in excess of the average market price for the period. For each of the six months ended June 30, 2008 and 2007, 4,600,000 warrants were excluded in the calculation of earnings per share as their issuance prices were in excess of the average market price for the period.
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NOTE 4: DISPOSAL OF SUBSIDIARIES
On June 27, 2007, the Company sold its wholly-owned subsidiary, DigitalApps Technologies Sdn Bhd ("DAT"), which included DAT's 55%-owned subsidiary, Ispec Sdn Bhd ("ISS"), to a third party and recognized a gain on disposal of $22,984. Both DAT and ISS were operating at a loss and did not meet the Company's criteria for return on investment.
Results of discontinued operations are as follows for the periods indicated:
Three Months Ended Six Months Ended
June 30, June 30, June 30, June 30,
2008 2007 2008 2007
-------------- -------------- -------------- ---------------
Revenue $ -- $ -- $ -- $ --
Cost of revenues -- -- -- --
-------------- -------------- -------------- ---------------
Gross profit -- -- -- --
Operating expenses -- 8,583 -- 17,248
-------------- -------------- -------------- ---------------
Loss from operations -- (8,583) -- (17,248)
Other income -- -- -- --
-------------- -------------- -------------- ---------------
Loss before tax -- (8,583) -- (17,248)
Income tax -- -- -- --
-------------- -------------- -------------- ---------------
Loss from discontinued operations $ -- $ (8,583) $ -- $ (17,248)
============== ============== ============== ===============
NOTE 5: RELATED PARTY TRANSACTIONS
LSH ASSET HOLDINGS SDN BHD ("LSH"):
LSH, a company owned by Patrick Lim, the Company's Chief Executive Officer, and his wife, billed the Company management fees totaling $30,000 for each of the three months ended June 30, 2008 and 2007 and $60,000 for each of the six months ended June 30, 2008 and 2007. LSH also billed the Company's Malaysian principal operating subsidiary, DigitalApps Sdn Bhd ("DASB"), $7,465 and $6,973 for the three months ended June 30, 2008 and 2007 and $14,892 and $13,808 for the six months ended June 30, 2008 and 2007, for administrative and clerical charges. LSH also made short term advances to the Company from time to time for working capital purposes. At June 30, 2008 and December 31, 2007, the amount due to LSH was $66,017 and $23,668, respectively. This amount is unsecured, bears no interest, has no fixed terms of repayment, and is recorded in the financial statements as "Amount due to an affiliated company."
CHIEF EXECUTIVE OFFICER
As of June 30, 2008 and December 31, 2007, the Company owed Patrick Lim, the Company's Chief Executive Officer, $8,786 and $88,632, respectively, for short-term cash advances made to the Company from time to time for working capital purposes. The amount owing to the Chief Executive Officer is unsecured, bears no interest, has no fixed terms of repayment and is recorded in the financial statements as "Amount due to a director."
MY ARCHITECT ("MYA")
Mustaffar bin Yacob, a minority shareholder of one of the Company's Malaysian subsidiary, Perwimas Telecommunications Sdn Bhd ("PTSB"), is a principal partner of MYA. The Company received payment from consulting contracts that it entered into with MYA amounting $768,443 and $1,613,253, for the three and six months ended June 30, 2008 and $558,228 and $860,110 for the three and six months ended June 30, 2007. The terms of repayment for the amount due from MYA are similar to terms accorded to the Company's other existing customers. At June 30, 2008 and December 31, 2007, there was no balance owed to the Company by MYA.
ULTIMATE SERIES SDN BHD ("USSB")
USSB is wholly-owned by Mustaffar bin Yacob. During the three and six months ended June 30, 2008 and 2007, the Company incurred fees of $5,996,339, $12,001,675, $4,383,252 and $8,475,822, respectively, for sub-contractor work that it entered into with USSB. The terms of repayment for the amount due to USSB by the Company are similar to terms accorded to the Company's other existing suppliers. At June 30, 2008 and December 31, 2007, there was no balance owed to USSB.
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NOTE 6: STOCKHOLDERS' EQUITY
COMMON STOCK
The Company issued from its treasury stock 100,000 shares of common stock on each of June 13, 2007 and October 22, 2007 to a consultant pursuant to a compensation agreement dated May 1, 2007, under which the Company is to issue an aggregate of 400,000 shares of its common stock to the consultant for services to be rendered to the Company for the 12-month period ended April 30, 2008. The Company recognized compensation expense of $6,358 for the three months ended June 30, 2008 related to this compensation agreement.
The Company issued from its treasury stock 250,000 shares of common stock on each of October 17, 2007, February 20, 2008, April 18, 2008 and July 14, 2008 to a consultant pursuant to a compensation agreement dated August 20, 2007, under which the Company is to issue an aggregate of 1,000,000 shares of its common stock to the consultant for services to be rendered to the Company for the 12-month period ending August 19, 2008. The Company recognized compensation expense of $32,233 for the three months ended June 30, 2008 related to this compensation agreement.
On March 5, 2008, the Company issued 1,679,500 shares of common stock to Patrick Lim, the Company's Chief Executive Officer, upon the exercise of warrants. The Company received proceeds totaling $109,000 from Mr. Lim's warrant exercise.
On April 17, 2008, the Company issued 500,000 shares of common stock to Mr. Lim for achieving a compounded growth in group revenues of at least 15% percent pursuant to a Stock Award Agreement dated October 21, 2006. The total consideration amount of $86,500 is based on the market value of $0.173 per share on the date of grant.
On April 21, 2008, the Company issued from its treasury stock 2,000,000 shares of common stock to a consultant pursuant to a compensation agreement dated April 18, 2008, under which the Company is to issue an aggregate of 2,000,000 shares of its common stock to the consultant for services to be rendered for the 12-month period ending April 17, 2009. The total consideration amount of $300,000 is based on the market value of $0.15 per share on the date of issuance.
NOTE 7: SIGNIFICANT CONCENTRATIONS
Two customers accounted for the following revenue for the three and six months ended June 30, 2008 and 2007:
Three Months Ended Six Months Ended
June 30, June 30, June 30, June 30,
2008 2007 2008 2007
----------------- ----------------- ----------------- -----------------
Customer 1 51% 49% 51% 49%
Customer 2 44% 46% 44% 47%
----------------- ----------------- ----------------- -----------------
Total 95% 95% 95% 96%
================= ================= ================= =================
At June 30, 2008 and 2007, two customers accounted for substantially all of the trade accounts receivable.
Three suppliers (including USSB - see Note 5) accounted for substantially all cost of revenues during the six months ended June 30, 2008 and 2007. The Company is not dependent upon one supplier to provide the services that it requires but made a strategic decision to engage the services of only a small number of suppliers after taking into consideration the quality of service and competitive pricing being offered. Should the need arise, the Company believes that it could utilize alternative suppliers for the services that it requires.
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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
THE FOLLOWING ANALYSIS OF THE OPERATIONS AND FINANCIAL CONDITION OF THE COMPANY SHOULD BE READ IN CONJUNCTION WITH THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, INCLUDING THE NOTES THERETO, OF THE COMPANY CONTAINED ELSEWHERE IN THIS FORM 10-Q.
The following is management's discussion and analysis of certain significant factors affecting our financial position and operating results during the periods included in the accompanying condensed consolidated financial statements. Except for the historical information contained herein, the matters set forth in this report are forward-looking statements.
OVERVIEW
Secured Digital Applications, Inc. ("SDA." "Company," "we," "us" or "our") is a provider of mobile communication and information technology consulting services. Our strategy is to provide business services to our customers in a manner that is both superior in quality and more cost efficient than the customer can provide for themselves. Our services are focused in the areas of multimedia production, information technology and computing consulting services, smarthome, biometric security and Bluetooth, GPS and RFID-enabled applications. As a supplier and consultant, we rely on a combination of current technologies to provide high-quality products and services at competitive prices.
The Company has provided outsourced information technology and multimedia content production services since 2000. We began to provide services in security applications, particularly biometric security applications, during 2003. We continue to seek to add to our holdings with acquisitions that meet our management's criteria for inclusion in the group of SDA companies. In general, we continue to seek out regional businesses with strong management willing to remain in considerable positions of responsibility as minority equity holders. We also seek businesses that are operating at a profit or near break-even and which provide a superior opportunity for high rates of growth after integration into the SDA group of companies. In considering potential acquisitions, SDA evaluates such factors as:
- the "fit" of the potential acquisition among SDA's existing subsidiaries, in particular whether the acquisition is complementary to SDA's existing operating subsidiaries;
- the capabilities of existing management and the willingness of existing management to continue with the enterprise as employees and minority equity holders;
- whether the enterprise provides, in management's view, a superior potential for growth and profitability after acquisition;
- whether the enterprise, in management's view, can be successfully and beneficially integrated with SDA's existing business processes;
- the terms under which existing management is prepared to convey a majority interest to SDA; and
- the demonstrated ability of existing management to operate the enterprise profitably.
Since 2000, we have succeeded in financing our acquisitions primarily with internally generated funds and with issuances of our securities. This strategy has permitted the Company to maintain a low debt to equity ratio. There can be no assurance, however, that we will be able to continue to pay for acquisitions with internally generated funds and it is likely that we will require additional funding, which may result in the issuance of additional equity or debt. There also can be no assurance that we will be able to identify, acquire or integrate businesses into the SDA group of companies.
SDA's core line of business is media production and information technology applications, which account for the majority of our revenue. Our operating subsidiaries offer products in diverse lines of business including the development of Internet content, digital security and biometric products. We conduct our principal operations in Malaysia.
The accompanying condensed consolidated financial statements include the accounts of the Company and its subsidiaries.
Reorganization of Operating Subsidiaries
On May 20, 2008, the Company sold its wholly-owned subsidiary company, China Sea Trade Inc. ("CST") to a third party and recognized a gain on sale of $1,928. CST was operating at a loss and did not meet the Company's criteria for return on investment. The effect of the sale of CST is not material and, therefore, the operating results of CST were not presented separately as discontinued operations.
For the three and six months ended June 30, 2008 and 2007, the Company's revenue was generated primarily from the following activities:
- Designing, producing, hosting and distribution of interactive multimedia content, websites, programs and applications;
- Developing and producing e-commerce programs and Internet-based security applications and solutions; and
- Providing project consulting services on broadband communication and networking systems for property development projects.
13
We continue to pursue opportunities to provide technical consulting and technical services to commercial businesses. Further, we continue to seek opportunities to combine the Company's expertise in supply chain management solutions with wireless technologies like Bluetooth, RFID and GPS tracking systems and biometric security systems for the retailing, logistics and warehousing, telecommunication, transportation, healthcare, security and manufacturing industries.
In November 2007, the Company acquired the right to the source code for the Bluetooth cell integration, cell management and proximity marketing software. Since acquiring the right, the Company has utilized the source code to develop a host of applications for the retailing, logistics and warehousing, telecommunication, transportation, healthcare, security and manufacturing industries.
Operations During 2008
The Company's principal operations during 2008 included multimedia production, information technology and computing services, sales of smarthome, biometric security and Bluetooth, GPS and RFID-enabled applications. We marketed hardware, software and consulting services to a number of companies in the public and private sectors. Our hardware products included the EyStar SmartHome Management System, biometric systems and Internet-based cameras. SDA sells its products in connection with consulting contracts that are awarded to the Company. We presently provide these services principally to customers in Southeast Asia.
The Company managed to establish a toehold in China when it secured its first contract during December 2007, valued at $2.825 million, to install and maintain a real-time GPS fleet tracking management system for 1,100 trucks owned by a leading operator in Guangdong Province. The installation is scheduled to begin in the third quarter of 2008.
Negotiations are underway in Australia with channel partners whom will market the Company's products and services and secure contracts on our behalf under the Company's established trademarks. Our primary goal is to offer our Bluetooth and RFID-enabled applications for the mining, healthcare, public utilities and entertainment industries. We anticipate contracts to be executed in the third and fourth quarter of 2008.
RESULTS OF OPERATIONS
The following discussion and analysis of our financial condition and results of operations should be read in conjunction with the condensed consolidated financial statements and notes to the condensed consolidated financial statements, included elsewhere in this quarterly report on Form 10-Q.
The following table sets forth certain operating data for the Company and its subsidiaries for the periods as indicated below.
Six Months Ended June 30,
(Unaudited) 2008 2007
--------------- ---------------
Revenues $29,219,123 $21,381,012
Gross profit 2,444,389 1,580,650
Sales and marketing 26,748 7,124
General and administrative 1,080,990 859,545
Gain on disposal of assets-related parties -- 55,749
Income from continuing operations 1,137,688 654,137
Income from discontinued operations -- 5,736
Net income 1,137,688 659,873
COMPARISON OF THE THREE MONTHS ENDED JUNE 30, 2008 TO THE THREE MONTHS ENDED
JUNE 30, 2007
Revenue
Total revenue increased by $3,699,552 or 34% to $14,709,762 for the three months ended June 30, 2008 as compared to $11,010,210 for the three months ended June 30, 2007.
The increase in total revenue for the three months ended June 30, 2008 as compared to the three months ended June 30, 2007 was mainly due to an increase in fees earned from the production of multimedia programs and business contracts. The increase in revenue from the production of multimedia programs was the result of sub-contract work from the Company's two major customers. Revenue for project consulting services was generated from contracts that the Company secured in 2001 through 2003. In the three months ended June 30, 2008, two customers accounted for 51% and 44% of total revenue. In the three months ended June 30, 2007, the same two customers accounted for 49% and 46% of total revenue.
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Gross Profit
Gross profit increased to $1,201,932 for the three months ended June 30, 2008 compared to $890,023 for the three months ended June 30, 2007. Gross profit margin increased to 8.2% in the quarter ended June 30, 2008 versus 8.1% in the quarter ended June 30, 2007.
The increase in gross profit was due to higher revenue, particularly consulting revenue, which has a higher margin than production work. As a result of higher revenue, cost of revenues increased by $3,387,643 or 33%, to $13,507,830 for the three months ended June 30, 2008 from $10,120,187 for the three months ended June 30, 2007. The increase in cost of revenues was primarily due to the Company requiring additional external resources in order to fulfill the higher demand for the Company's services. The outsourcing of content production work enabled the Company to develop a team of contractors that will assist the Company in producing multimedia content and applications that are crucial to its future business operation.
Sales and marketing expenses
Sales and marketing expenses increased by $7,839, or 242%, to $11,079 for the three months ended June 30, 2008 compared to $3,240 for the three months ended June 30, 2007, primarily as a result of an increase in travel expenses.
General and administrative expenses
General and administrative expenses involving non-related parties increased by $138,495, or 36%, to $524,914 for the three months ended June 30, 2008 as compared to $386,419 for the three months ended June 30, 2007.
The increase was primarily attributable to an increase in depreciation of tangible assets, salaries, stock compensation and professional and auditing fees. For the three months ended June 30, 2008, 44% of the total general and administrative expenses of $524,914 was for depreciation of tangible assets, 1% was for consulting fees and 15% was for employee payroll. Another 19% was for fees for professional and auditing services, 1% was for investor relations expenses, 11% was for both employee and stock compensation expenses and approximately 9% was for rent, utilities, general office supplies, communications and corporate insurance expenses. For the three months ended June 30, 2007, 19% of the total general and administrative expenses of $386,419 was for depreciation of tangible assets, 5% was for consulting fees and 10% was for employee payroll. Another 13% was for fees for professional and auditing services, 4% was for investor relations expenses, 8% was for compensation expenses and approximately 41% was for rent, utilities, general office supplies, communications and corporate insurance expenses.
General and administrative expenses - related parties for the three months ended June 30, 2008 and 2007 were $37,465 and $36,973, respectively. General and administrative expenses - related parties included management fees and administrative expenses payable by the Company to LSH, a company owned by Mr. Lim and his wife. For the three months ended June 30, 2008, LSH billed the Company's Malaysian subsidiary, DASB, $7,465 and $6,973 for the three months ended June 30, 2008 and 2007, respectively, for administration and clerical fees. The Company also incurred management fees of $30,000 for each of the three months ended June 30, 2008 and 2007. The management fees were charged on the basis of time spent for the administration and management services provided to the Company.
Gain on disposal of assets - related parties
For the three months ended June 30, 2007, the Company included recognition of a previously deferred gain of $30,459, related to an amount the Company received from its long-term receivable, related party. The receivable balance and total deferred gain was $0 as of December 31, 2007. These amounts arose in the year ended December 31, 1998, when the Company sold assets used in the operations of a subsidiary to a related company. Due to the uncertainty of collection of the related receivable, a related gain on the sale of the assets was deferred and is to be recognized only after all costs have been recovered and to the extent the receivable is collected. During the year ended December 31, 2002, payments received by the Company exceeded all remaining costs. As a result, the Company's long-term receivable, related party and deferred gain balances were reduced to $54,473, as of June 30, 2007. This amount was fully settled as of December 31, 2007.
15
COMPARISON OF THE SIX MONTHS ENDED JUNE 30, 2008 TO THE SIX MONTHS ENDED
JUNE 30, 2007
Revenue
Total revenue increased by $7,838,111, or 37%, to $29,219,123 for the six months ended June 30, 2008, as compared to $21,381,012 for the six months ended June 30, 2007.
The increase in total revenue was mainly due to an increase in fees earned from the production of multimedia programs and business contracts. The increase in revenue from the production of multimedia programs was a result of increased sub-contract work from the clients of the Company's two major customers. Revenue for project consulting services was generated from four project consulting contracts that the Company secured in 2001, 2002 and 2003. In the six months ended June 30, 2008, two customers accounted for 51% and 44% of total revenue. In the six months ended June 30, 2007, the same two customers accounted for 49% and 47% of total revenue.
Gross Profit
Gross profit increased to $2,444,389 for the six months ended June 30, 2008, compared to $1,580,650 for the six months ended June 30, 2007, an increase of $863,739 or 55%. Gross profit margin increased to 8.4% for the six months ended June 30, 2008 versus 7.4% for the six months ended June 30, 2007.
The increase in gross profit for the six months ended June 30, 2008 was due to higher revenue, particularly consulting revenue, which has a much higher margin than production work. As a result of higher revenue, cost of revenues increased by $6,974,372, or 35%, to $26,774,734 for the six months ended June 30, 2008 from $19,800,362 for the six months ended June 30, 2007. The increase in cost of revenue was primarily due to the Company requiring additional external resources in order to fulfill the higher demand for the Company's services. The outsourcing of content production work enabled the Company to develop a team of contractors that will assist the Company in producing multimedia content and applications that are crucial to its future business operation.
Sales and marketing expenses
Sales and marketing expenses increased by $19,624, or 275%, to $26,748 for the six months ended June 30, 2008 from $7,124 for the six months ended June 30, 2007, primarily as a result of an increase in travel expenses.
General and administrative expenses
General and administrative expenses involving non-related parties increased by $220,361, or 28%, to $1,006,098 for the six months ended June 30, 2008, as compared to $785,737 for the six months ended June 30, 2007.
The increase was primarily attributable to an increase in depreciation of tangible assets, salaries, professional and auditing fees and investor relations. For the six months ended June 30, 2008, 46% of the total general and administrative expenses of $1,006,098 was for depreciation of tangible assets, 1% was for consulting fees and 15% was for employee payroll. Another 18% was for fees for professional and auditing services, 2% was for investor relations expenses, 9% was for both employee and stock compensation expenses and approximately 9% was for rent, utilities, general office supplies, communications and corporate insurance expenses. For the six months ended June 30, 2007, 18% of the total general and administrative expenses of $785,737 was for depreciation of tangible assets, 10% was for consulting fees and 13% was for employee payroll. Another 13% was for fees for professional and auditing services, 2% was for investor relations expenses, 20% was for compensation expenses and approximately 24% was for rent, utilities, general office supplies, communications and corporate insurance expenses.
General and administrative expenses - related parties for the six months ended June 30, 2008 and 2007 were $74,892 and $73,808, respectively. General and administrative expenses - related parties included management fees and administrative expenses payable by the Company to LSH, a company owned by Mr. Lim and his wife. For the six months ended June 30, 2008, LSH billed the Company's Malaysian subsidiary, DASB, $14,892 and $13,808 for the six months ended June 30, 2008 and 2007, respectively, for administration and clerical fees. The Company also incurred management fees of $60,000 for each of the six months ended June 30, 2008 and 2007. The management fees were charged on the basis of time spent for the administration and management services provided to the Company.
Gain on disposal of assets - related parties
For the six months ended June 30, 2007, the Company included recognition of a previously deferred gain of $55,749, related to an amount the Company received from its long-term receivable, related party. The receivable balance and total deferred gain was $0 as of December 31, 2007. These amounts arose in the year ended December 31, 1998, when the Company sold assets used in the operations of a subsidiary to a related company. Due to the uncertainty of collection of the related receivable, a related gain on the sale of the assets was deferred and is to be recognized only after all costs have been recovered and to the extent the receivable is collected. During the year ended December 31, 2002, payments received by the Company exceeded all remaining costs. As a result, the Company's long-term receivable, related party and deferred gain balances were reduced to $54,473, as of June 30, 2007. This amount was fully settled as of December 31, 2007.
16
Liquidity and Capital Resources
As of June 30, 2008, the Company had cash of $26,123.
For the six months ended June 30, 2008, operations were primarily funded from internally generated funds and working capital advanced from time to time by Mr.
Lim. These advances bear no interest and have no fixed terms of repayment.
As of June 30, 2008, the Company owed Mr. Lim $8,786 for short-term cash advances made to subsidiaries of the Company for working capital purposes from time to time. Additionally, at June 30, 2008, the amount owed to a company in which Mr. Lim has a financial interest was $66,017. This amount was for short-term cash advances made to the Company and its subsidiaries for working capital purposes from time to time and for management and administrative fees. These amounts are unsecured, bear no interest and have no fixed terms of repayment.
The cash generated from operating activities for the six months ended June 30, 2008 was $48,665 and was primarily the result of income and non-cash expenses for the period offset by an increase in accounts receivable.
Cash used in investing activities of $24,508 for the six months ended June 30, 2008 was primarily attributable to the purchase of computer software and equipment totaling $9,165 and the acquisition of a trademark totaling $15,343. The Company will continue to develop its products and services under the brand name "EyStar." EyStar is a well established and recognized brand name in Asia.
Cash generated from financing activities during the six months ended June 30, 2008 of $69,806 resulted from proceeds received from the issuance of shares of the Company's common stock totaling $109,000, repayment to a director for short-term cash advances made to subsidiaries of the Company totaling $81,175 and advances from an affiliate totaling $41,981.
The Company expects to expand into new businesses that include provision of Bluetooth, RFID, GPS, outsourced business support and supply chain management services. The Company expects to incur further expenses to acquire technologies that are synergistic to the new businesses and will help the Company to rollout the new businesses in the shortest time possible. The Company estimates that it will require $2 million to finance the set-up cost of its new businesses in 2008. The Company also expects that it will require a further $5 million to finance both the working capital and additional capital expenditures of its new businesses in 2009.
In addition to internally generated funds and anticipated continued financial support from Mr. Lim, the Company may seek to raise funds from equity or debt financing for its future growth, expansion and working capital requirements.
Off-Balance Sheet Arrangements
The Company does not have any off-balance sheet transactions that are expected to have a material effect on the Company's financial condition, revenues, expenses, results of operations, liquidity, capital expenditures or capital resources.
17
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.
Not applicable to smaller reporting companies.
ITEM 4(T). CONTROLS AND PROCEDURES
(a) Evaluation of Disclosure Controls and Procedures
Our principal executive officer and principal financial officer, based on their evaluation of our disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) as of the end of the period covered by this Quarterly Report on Form 10-Q, have concluded that (i) our disclosure controls and procedures are effective for ensuring that information required to be disclosed by us in the reports that we file or submit under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms and (ii) our disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by us under the Securities Exchange Act of 1934 is accumulated and communicated to our management, including our principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.
(b) Management's Report on Internal Control over Financial Reporting
Management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Exchange Act Rule 13a-15(f). Our management conducted an evaluation of the effectiveness of our internal control over financial reporting and concluded that our internal control over financial reporting was effective as of June 30, 2008.
This report does not include an attestation report of the Company's registered public accounting firm regarding internal control over financial reporting. Management's report was not subject to attestation by the Company's registered public accounting firm pursuant to temporary rules of the SEC that permit the Company to provide only management's report in this report.
(c) Changes in Internal Control over Financial Reporting
During the quarter ended June 30, 2008, there have been no changes in our internal controls over financial reporting that have materially affected, or are reasonably likely to materially affect, these controls.
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PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
In the ordinary course of our business we are periodically threatened with or named as a defendant in legal proceedings. As of the end of the period for which this report is filed, there are no pending legal proceedings to which we are a party or to which our property is subject that management believes to be material to our business, results of operations or financial condition.
ITEM 1A. RISK FACTORS
The Company's business, financial condition, operating results and cash flows can be impacted by a number of factors, any one of which could cause the Company's actual results to vary materially from recent results or from the Company's anticipated future results. For a discussion identifying risk factors and other important factors that could cause actual results to differ materially from those anticipated, see the Company's Annual Report on Form 10-K for the year ended December 31, 2007.
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
The Company signed a compensation agreement with a consultant on August 20, 2007 under which the Company agreed to issue an aggregate of 1,000,000 shares of its common stock to the consultant for services to be rendered for the 12-month period ended July 14, 2008. On April 18, 2008, the Company issued 250,000 shares of common stock to the consultant pursuant to this agreement for aggregate consideration in the form of services rendered by the consultant equal to $32,250.
The Company signed a compensation agreement with a consultant on April 18, 2008 under which the Company agreed to issue 2,000,000 shares of its common stock to a consultant for services to be rendered for the 12-month period ending April 17, 2009. On April 21, 2008, the Company issued 2,000,000 shares of common stock to the consultant pursuant to this agreement for aggregate consideration in the form of services to be rendered by the consultant equal to $300,000..
The Company relied upon the exemptions from registration provided by Section 4(2) of the Securities Act of 1933, as amended, and Regulation D promulgated thereunder for the issuances of these securities.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
None.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None.
ITEM 5. OTHER INFORMATION
None.
ITEM 6. EXHIBITS
31.1 Certification by Chief Executive Officer pursuant to Rule 13A-14 or 15D-14 of the Securities Exchange Act of 1934
31.2 Certification by Chief Accounting Officer pursuant to Rule 13A-14 or 15D-14 of the Securities Exchange Act of 1934
32.1 Certification by Chief Executive Officer pursuant to 18 U.S.C. 1350
32.2 Certification by Chief Accounting Officer pursuant to 18 U.S.C. 1350
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
Secured Digital Applications, Inc.
(registrant)
Dated: August 14, 2008 By: /s/ Patrick Soon-Hock Lim
--------------------------------
Patrick Soon-Hock Lim
Chairman and Chief Executive Officer
Dated: August 14, 2008 By: /s/ Kelvin Choon-Huat Ng
--------------------------------
Kelvin Choon-Huat Ng
Chief Accounting Officer
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Exhibit 31.1
CERTIFICATION PURSUANT TO RULE 13A-14 OR 15D-14 OF THE SECURITIES EXCHANGE ACT OF 1934, AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002
I, Patrick Soon-Hock Lim, certify that:
1. I have reviewed this quarterly report on Form 10-Q of Secured Digital Applications, Inc (this "Report").;
2. Based on my knowledge, this Report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this Report;
3. Based on my knowledge, the financial statements, and other financial information included in this Report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this Report;
4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this Report is being prepared;
b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this Report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this Report based on such evaluation; and
d) Disclosed in this Report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal year that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and
5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's Board of Directors (or persons performing the equivalent function):
a) All significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
Date: August 14, 2008
/s/ Patrick Soon-Hock Lim
-------------------------------------
Patrick Soon-Hock Lim
Chief Executive Officer
Exhibit 31.2
CERTIFICATION PURSUANT TO RULE 13A-14 OR 15D-14 OF THE SECURITIES EXCHANGE ACT OF 1934, AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002
I, Kelvin Choon-Huat Ng, certify that:
1. I have reviewed this quarterly report on Form 10-Q of Secured Digital Applications, Inc. (this "Report");
2. Based on my knowledge, this Report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this Report;
3. Based on my knowledge, the financial statements, and other financial information included in this Report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this Report.
4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this Report is being prepared;
b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this Report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this Report based on such evaluation; and
d) Disclosed in this Report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal year that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and
5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's Board of Directors (or persons performing the equivalent function):
a) All significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
Date: August 14, 2008 /s/ Kelvin Choon-Huat Ng
----------------------------------
Kelvin Choon-Huat Ng
Chief Accounting Officer
Exhibit 32.1
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Quarterly Report of Secured Digital Applications, Inc. (the "Company") on Form 10-Q for the quarterly period ending June 30, 2008 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Patrick Soon-Hock Lim, Chief Executive Officer (principal executive officer) of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:
(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(2) The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.
/s/ Patrick Soon-Hock Lim
Patrick Soon-Hock Lim
Chief Executive Officer
August 14, 2008
Exhibit 32.2
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Quarterly Report of Secured Digital Applications, Inc. (the "Company") on Form 10-Q for the quarterly period ending June 30, 2008 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Kelvin Choon-Huat Ng, Chief Accounting Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:
(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(2) The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.
/s/ Kelvin Choon-Huat Ng
Kelvin Choon-Huat Ng
Chief Accounting Officer
August 14, 2008
Yawn... that press release from last week sure inject some excitement into this stock. I am still in the green... though, I felt like I should take money off this table to go somewhere else with more excitement like RDN / ABK.
Glad I held my shares. Now lets rock. Do I hear 1.05? 1.06? 1.10? :) Wwweeee...
VNDA - HOD at .97
Lets hope for a buck today. Churning at .93 earlier and finally broke that range.. :) 3 more cents than I will be at least break even. LOL
VNDA - 92.93 now. Advanced by 1 cent since I posted my question. lol Maybe I will post 20 replies in the next 5 minutes. That should put us in 1.10 range.
I am holding for now but may get out by Friday.
VNDA still in play? Thoughts
Bought in a couple days ago at 1 buck and now taking a 8% hit.(small wound) Volume decreased drastically. Price seemed to be stabilized at 92 cents. Can go either way but can't decide if I should get out.. lol I think it may still bounce quite a bit if it can break over 1 buck again. Let me flip my trader's coin.. head for hold and tail for sale.
momo gone. very little volume traded so far. whats next? still holding my shares, for now.
nice.. I picked up some at .94
was watching at .89. next thing I know, I was chasing. Hopefully it closes above a buck and continue upward tomorrow.
RDN bouncing?
Going under .10? Hope not. Small volume lately. No news for a while. Hoping for a better second half of 2008.
Cut/paste a reply to one of my postings a couple weeks back. You need to be a stockholder by tomorrow.(2/29) Then hopefully you will see the dividend shares in your broker account by early next week.
=======================
Posted by: penny_ta
In reply to: FogCity who wrote msg# 27672 Date:2/14/2008 5:45:22 PM
Post #of 28861
** UHCR - that's the key point here...
People sold thinking they got their dividend. They were wrong.
Ex-dividend date is March.3, so you have to hold through Feb.29.
Ironically, current buyers will get the dividend from the sellers. All shares bought until Feb.29, come with an attached dividend.
Why investors dont realize this and try to capitalize, is beyond me. Then again, most huge runs are not recognized early on.
Just a thought...
Not everyone is reading this board. Based on the 2/4 news release, as long as your are the stockholder by this past Monday, you will get dividend by 2/29. Therefore, people who think they got dividend already may have sold? Again, this is just a thought.
Excerp from the release
"The Company is addressing this issue as several shareholders have contacted the Company regarding this matter; to be eligible to receive the 1 for 1 Share Dividend you must have purchased shares no later than Feb. 7, 2008 thus after settlement (3 days not including holidays or weekends) to be a shareholder of record on Feb. 11, 2008. This will entitle you to the Dividend.
All Dividend Shares will be free trading and will be distributed on Feb. 29, 2008 by the Company's Transfer Agent"
It was me. Sorry. Bought too many SOYO shares 2 days ago in my IRA and went over a couple hundreds. Got a stupid margin call. lol Ameritrade confuses me sometimes on how much "cash" I have. Since this is an IRA account, which I already max out on contribution, it gets tricky when my cash balance go negative. Never have issues with my other trading account.
Didn't want to sell other holdings.. so I gave 200 of my few thousands shares of SOYO back. Had a sell at 1.14 all day.. but decided to sell at market.
Form 10-Q for SECURED DIGITAL APPLICATIONS INC
--------------------------------------------------------------------------------
14-Nov-2007
Quarterly Report
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
THE FOLLOWING ANALYSIS OF THE OPERATIONS AND FINANCIAL CONDITION OF THE COMPANY SHOULD BE READ IN CONJUNCTION WITH THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, INCLUDING THE NOTES THERETO, OF THE COMPANY CONTAINED ELSEWHERE IN THIS FORM 10-Q.
The following is management's discussion and analysis of certain significant factors affecting our financial position and operating results during the periods included in the accompanying condensed consolidated financial statements. Except for the historical information contained herein, the matters set forth in this report are forward-looking statements.
OVERVIEW
Secured Digital Applications, Inc. ("SDA" or the "Company") is a provider of subcontracted business services. These include media production, which develops content for various technologies, including television, the Internet and free-standing displays. We also provide information technology services in such areas as biometric technology and security systems. We are in the process of developing a broad platform of outsourced core business services that will be offered to companies in the United States, Asia and Australia including digital document management, accounts receivable and payables management, bookkeeping, purchasing services and also Radio Frequency Identification (RFID) applications including inventory, asset and personnel tracking. We anticipate that we will begin offering those services in late 2007 or early 2008. We generate revenue through our majority- and wholly-owned subsidiary companies located in the United States and Malaysia.
Since SDA became a publicly held company through a reverse acquisition in 1999, the Company has evolved in its operations. We expanded our initial lines of business as a broadband communications operator and Internet content provider by acquiring majority interests in regional companies that are believed to have superior potential for growth and profitability as a member of the SDA group of companies. Acquisitions have been made based on management's criteria including acquisition costs, growth potential and compatibility with SDA's existing subsidiaries. During this acquisition process, we developed a centralized management and support structure provided by our home office in Petaling Jaya, Malaysia to support our operating subsidiaries and the ability of potential acquisitions to benefit from our management structure became a significant consideration in making acquisitions.
Reorganization of Operating Subsidiaries
During the third quarter of 2006, the Company determined that it was in the best interests of the business and our shareholders to restructure our operating subsidiaries. The intent of the reorganization was to improve administrative efficiency and profit margins as well as to dispose of certain assets or subsidiaries that did not meet management's criteria for continued inclusion in the SDA group of companies. In particular, we determined that our subsidiaries involved in the developing business of secured shipping and in the established business of operating retail computer outlets did not meet the Company's criteria for profitability and/or fit within the Company's organization. Under the reorganization plan, substantially all of the assets and liabilities of our principal operating subsidiary, Secured Digital Applications (M) Sdn Bhd ("SDAM"), were transferred to a newly created subsidiary, DigitalApps Sdn Bhd ("DASB"). DASB thus became our principal operating subsidiary with substantially the same assets and liabilities as the former SDAM.
Through reorganization, we reduced the number of operating subsidiaries and disposed of the companies associated with our Gallant IT operations, which operated retail computer stores in metropolitan Kuala Lumpur. We also disposed of the companies through which we had been seeking to develop a secured shipping business.
In connection with the reorganization, we incorporated a new subsidiary, DASB, which will act as the principal holding company for the Company's four operating subsidiaries: Perwimas Telecommunications Sdn Bhd ("PTSB"); DigitalApps Technologies Sdn Bhd ("DAT") (formerly Secured Shipping Sdn Bhd ("SSSB")); Digital Image ID Sdn Bhd ("DID"); and DigitalsApps Media Sdn Bhd ("DAM"). DAT owns 55% of Ispec Sdn Bhd ("ISS") (formerly Innospective Sdn Bhd). DID owns 100% of Digital Kiosk Technologies Sdn Bhd ("DKT") (formerly Century Jubilee Sdn Bhd ("CJSB")), a newly incorporated subsidiary. The assets and liabilities of Gallant Service Centre Sdn Bhd ("GSC"), through which we owned a majority interest in the Gallant group of companies, and Armor Multi Systems Sdn Bhd ("AMS") and Armor Multi Services Sdn Bhd ("AMSSB"), were sold to a third party.
On June 27, 2007, the Company sold its wholly-owned subsidiary, DAT, which included its 55%-owned subsidiary, ISS, to a third party and recognized a gain on disposal of $22,984. Both DAT and ISS were operating at a loss and did not meet the Company's criteria for return on investment. The Company determined that it was in its best interest to dispose of DAT and ISS to allow its available resources and infrastructure to be better utilized in the Company's core businesses that include BPO (as defined below) services and systems integration of RFID enabled tracking applications.
SDA's present core line of business is outsourced media production and information technology applications, which account for the majority of our revenue. Our operating subsidiaries offer products in diverse lines of business including the development of Internet content, digital security and biometric products. We conduct our principal operations in Malaysia. Our subsidiaries as of September 30, 2007 are the following companies:
- DASB is a wholly-owned Malaysian subsidiary that designs, develops and produces multimedia content and provides consulting services for website development, network engineering and project management in IT related projects. In addition to its activities as a multimedia developer and IT consultant, DASB provides centralized management and back-office support to SDA's other subsidiaries from its office in Petaling Jaya, Malaysia.
- Perwimas Telecommunications Sdn Bhd ("PTSB"), a 95%-owned Malaysian subsidiary of DASB, provides broadband and application services under licenses granted by the government of Malaysia.
- Digital Image ID Sdn Bhd ("DID") (f/k/a Vista Positive Sdn Bhd), DASB's wholly-owned subsidiary, from the date of acquisition on July 5, 2006.
- Digital Kiosk Technologies Sdn Bhd ("DKT") (f/k/a Century Jubilee Sdn Bhd), DID's wholly-owned subsidiary, from the date of acquisition on September 4, 2006.
- DigitalApps Media Sdn Bhd ("DAM"), DASB's wholly-owed subsidiary, from the date of incorporation on July 7, 2006.
- China Sea Trade Company, Inc. ("CST") (f/k/a Eystar Media, Inc.), is a wholly-owned subsidiary of SDA Worldwide, Inc., organized under Delaware law. CST offers consulting and management services to regional firms in Asia seeking to develop markets in the United States. CST began operations in early 2006 and has not generated any revenue to date.
- SDA Worldwide, Inc. ("SDAW") (f/k/a SDA America, Inc.), a wholly-owned subsidiary, organized under Delaware law. The company was originally formed as a wholly-owned corporation used as a special vehicle to secure a $6.5 million funding from Laurus Master Fund Ltd. through a private placement of securities consisting of convertible preferred stock of SDAW. As a result of the early retirement of the Laurus investment, management determined to use the corporation as the vehicle to develop the company's international trade consulting business in the United States. SDAW operated as a joint venture between September 5, 2005, and October 3, 2007 when the Company re-purchased the 20% of SDAW that it did not own from its joint venture partner. SDAW began operations in 2005 and has not generated any revenue to date.
In addition, as part of the reorganization, we increased our equity interest in PTSB from 86% to 95% by purchasing minority interests held by two of our directors, Wan Abdul Razak and Mustaffar Yacob, for aggregate consideration of approximately $154,000.
The accompanying consolidated financial statements include the accounts of Secured Digital Applications, Inc. and its subsidiaries.
For the three months and nine months ended September 30, 2007 and 2006, the Company's revenue was generated primarily from the following activities:
1. Designing, producing, hosting and distributing interactive multimedia content, websites, programs and applications.
2. Developing and producing e-commerce programs and Internet-based security applications and solutions.
3. Providing project consulting services on broadband communications and networking systems for property development projects.
Significant Business Developments and Plan of Operation
We are in the process of introducing a business process outsourcing (BPO) service to companies in the United States, Asia and Australia. Significant effort has been devoted to the technical development of our outsourced business process services, primarily in the integration of software and information systems that we obtain through licenses with third parties. We licensed or acquired technologies from various sources and utilized the technologies to develop our integrated online financial accounting and Radio Frequency Identification (RFID) tracking BPO service. Our integrated BPO service is marketed as EyStar Station.
Eystar Station provides a single point of entry, through a graphical user interface available on the Internet, into a customer's most significant business operations, including custom tailored financial reports, work in progress, inventory, accounts payable and receivable, expenses, and source documents. Eystar Station consists of a web-based financial accounting BPO suite integrated with RFID enabled tracking applications that include inventory, document and people tracking.
RFID is a proven technology that uses radio waves to identify individual items at specific locations. Many enterprises are presently seeking ways to mobilize and automate their field force operations with RFID, in areas such as asset management, maintenance, repair, manufacturing, item tracking, delivery scheduling, customer billing data collection, and work order management.
The purpose of an RFID system is to enable data to be transmitted by a mobile device, called a tag, which is read by an RFID reader and processed according to the needs of a particular application. The data transmitted by the tag may provide identification or location information, or specifics about the product tagged, such as price, color, date of purchase, etc.
The Company has developed a number of integrated financial accounting and RFID tracking applications that include:
o Financial accounting + inventory tracking
o Financial accounting + document tracking
o Financial accounting + people tracking
o Financial accounting + inventory + document + people tracking
The Company intends to launch its nano chip RFID embedded paper during the fourth quarter of 2007. This versatile security identification paper can be tracked through the Internet.
Our BPO service will combine the technology available through the Eystar Station with labor performed at competitive rates at our work center in Petaling Jaya, Malaysia.
We plan to continue to devote the bulk of our resources to core operations in Asia, particularly Malaysia, as management believes that the growth of Asian economies has been favorable and is likely to continue. The Company continues to review potential acquisitions in Asia, primarily of regional companies in Malaysia, Thailand, and the People's Republic of China, in an effort to add operations that will meet management's standards and provide superior opportunities for growth after acquisition.
The Company anticipates that it will continue to seek the rights to new products and services through contractual arrangements or through the acquisition of other business entities that provide compatible products or services. The Company expects to continue to market its products and services through a sales force and through its Internet websites located at www.digitalapps.net and www.eystar.com.
Strategic Contractual Relationships
The Company seeks to enter strategic agreements, both formal and informal, with other providers of goods or services that are compatible with the Company's existing businesses. Such arrangements include license agreements, requirements contracts and service agreements. The Company may also seek to acquire business enterprises that offer goods and services that are of benefit to the Company and its shareholders. We cannot forecast whether these strategic relationships will generate any revenue in 2007.
On October 27, 2007, the Company entered into a Supply Agreement (the "Supply Agreement") with Collier Consulting Inc. of Memphis, Tennessee, USA ("Collier") pursuant to which the Company agreed to sell to Collier and Collier agreed to purchase from the Company units of the Company's EyStar GPS Personal and Vehicle Tracker (the "Product") for a total purchase price of $16,000,000. The Supply Agreement provides that Collier will satisfy its aggregate purchase obligation in increments over a period of 10 months following the execution date of the Supply Agreement upon a mutually agreeable time frame.
The pocket-size EyStar GPS operates under the worldwide GSM/GPRS network and uses a high sensitivity GPS receiver for near-indoor tracking featuring quad-bands (850/900/1800/1900 MHz). It can be used as an emergency cellular phone with speed dialing for two-way voice communication, and to place a silent call to an emergency number or police using a digital voice and text to report location, date and time. Any navigation or Google Earth map can be used for the tracking.
The EyStar GPS can operate in both SMS and GPRS modes. This gives EyStar GPS the ability to transmit its position as a text message or it can be monitored in real-time via the Internet. The EyStar GPS has a unique Geo-Fence feature that can trigger an alert when the device enters or exits a pre-defined area. In addition to using the EyStar GPS to track individual vehicles, other potential uses include fleet management, and the tracking of school children or personal assets. The EyStar GPS has a built-in capability where normal GPS is unable to do so. It is well-suited for location-based service providers and system integrators interested in providing affordable personal vehicle monitoring services to a broad range of subscribers. It is compatible with all automobiles, domestic and import, presently represented in the United States.
Results of Operations
The following discussion and analysis of our financial condition and results of
operations should be read in conjunction with the consolidated financial
statements and notes thereto.
The following table sets forth certain operating data for the Company and its
subsidiaries for the periods as indicated below.
Nine Months Ended September 30,
2007 2006
----------------- -----------------
Revenues $ 33,199,082 $ 25,641,488
Gross profit 2,625,958 1,500,345
Sales and marketing 29,255 15,242
General and administrative 1,416,039 1,487,896
Gain on disposal of assets-related parties 84,547 66,356
Income from continuing operations 1,053,014 204,161
Income from discontinued operations 5,749 304,807
Net income 1,058,763 508,968
COMPARISON OF THE THREE MONTHS ENDED SEPTEMBER 30, 2007 TO THE THREE MONTHS ENDED SEPTEMBER 30, 2006
REVENUES
Revenues increased by $2,179,557, or 23%, to $11,818,070 for the three months ended September 30, 2007 ("2007") as compared to $9,638,513 for the three months ended September 30, 2006 ("2006").
The increase in total revenue in 2007 as compared to 2006 was mainly due to an increase in fees earned from the production of multimedia programs and business contracts. The increase in revenue from the production of multimedia programs was the result of sub-contract work from the Company's two major customers. Revenue for project consulting services was generated from contracts that the Company secured in 2001 through 2004. In 2007, two customers accounted for 48% and 45% of total revenue, respectively. In 2006, the same two customers accounted for 49% and 48% of total revenue, respectively.
GROSS PROFIT
Gross profit increased to $1,045,308 in 2007 compared to $876,705 in 2006.
The gross profit percentage was 8.8% in 2007 and 9.1% in 2006. The Company is striving to improve its quality of services and efficiency with the objective to increase its gross profit percentage. The outsourcing of content production work enabled the Company to develop a team of contractors that will assist the Company in producing multimedia content and applications that are crucial to its future business operation.
SALES AND MARKETING EXPENSES
Sales and marketing expenses increased by $10,491 or 90%, to $22,131 in 2007 compared to $11,640 in 2006, primarily as a result of an increase in travel expenses.
GENERAL AND ADMINISTRATIVE EXPENSES
General and administrative expenses relating to non-related parties increased to $519,583 in 2007 compared to $381,154 in 2006. The increase was primarily attributable to an increase in compensation expenses, investor relation expenses, employee payroll and depreciation.
In 2007, general and administrative expenses consisted of the following: 14% was for depreciation of tangible assets, 17% was for employee payroll, 8% was for fees for professional and auditing services, 5% was for investor relation expenses, 46% was for compensation expenses and 10% was for rent, utilities, general office supplies, communications and corporate insurance expenses. For 2006, 5% was for depreciation of tangible assets, 12% was for employee payroll, 35% was for fees for professional and auditing services, 3% was for investor relation expenses, 15% was for compensation expenses and 30% was for rent, utilities, general office supplies, communications and corporate insurance expenses.
General and administrative expenses - related parties in 2007 and 2006 were $36,911 and $36,519, respectively. These expenses included management fees and administrative expenses payable by the Company to a company in which Mr. Patrick Lim, the Chairman and Chief Executive Officer of the Company, has a financial interest. In 2007 and 2006, the related company, LSH Assets Holdings Sdn Bhd ("LSH"), billed the Company's Malaysian subsidiaries, DASB and SDAM, administrative expenses of $6,911, 0, $6,519 and $0, respectively, for administration and clerical fees incurred by LSH on behalf of DASB and SDAM. The Company also incurred management fees of $30,000 each for 2007 and 2006. The management fee was charged on the basis of time spent for the administration and management services provided to the Company.
PREVIOUSLY DEFERRED GAIN ON SALE OF TECHNOLOGY - RELATED PARTY
In 2007 and 2006, the Company included recognition of a previously deferred gain of $28,798 and $22,002, respectively, related to a similar amount the Company received from its long-term receivable - related party. Each of the receivable balance and total deferred gain was $108,247 as of December 31, 2006. These amounts arose in the year ended December 31, 1998 when the Company sold assets used in the operations of a subsidiary to a related company. Due to the uncertainty of collection of the related receivable, a related gain on the sale of the assets was deferred and is to be recognized only after all costs have been recovered and to the extent the receivable is collected. During the year ended December 31, 2002, payments received by the Company exceeded all remaining costs. As a result, the Company's long-term receivable - related party and deferred gain balances were each reduced to $25,954, as of September 30, 2007.
WRITE-OFF OF OLD VENDOR PAYABLES
The Company wrote off vendor payables totaling $35,512 in 2007. The amounts owed were at least three years old and management determined that such amounts were no longer owed.
INCOME TAXES
Income taxes represent the provision for the Company's Malaysian operations and are net of any available net operating losses. There was no provision for the Company's United States operations as such entities sustained taxable losses.
COMPARISON OF THE NINE MONTHS ENDED SEPTEMBER 30, 2007 TO THE NINE MONTHS ENDED
SEPTEMBER 30, 2006
REVENUES
Revenues increased by $7,557,594, or 29%, to $33,199,082 for the nine months ended September 30, 2007 ("2007") as compared to $25,641,488 for the nine months ended September 30, 2006 ("2006").
The increase in total revenue in 2007 as compared to 2006 was mainly due to an increase in fees earned from the production of multimedia programs and business contracts. The increase in revenue from the production of multimedia programs was the result of sub-contract work from the Company's two major customers. Revenue for project consulting services was generated from contracts that the Company secured in 2001 through 2004. In 2007, two customers accounted for 48% and 47% of total revenue, respectively. In 2006, the same two customers each accounted for 49% of total revenue.
GROSS PROFIT
Gross profit increased to $2,625,958 for the nine months ended September 30, 2007 compared to $1,500,345 during the comparable period in 2006. The gross profit percentage increased to 7.9% in 2007 from 5.9% in 2006. The increase in gross profit percentage in 2007 was due to higher revenue, particularly consulting revenue, which has a higher margin than production work and incurring reduced subcontractor costs. The Company is striving to improve its quality of services and efficiency with the objective to increase its gross profit percentage. The outsourcing of content production work enabled the Company to develop a team of contractors that will assist the Company in producing multimedia content and applications that are crucial to its future business operation.
SALES AND MARKETING EXPENSES
Sales and marketing expenses increased by $14,013, or 92%, to $29,255 for the nine months ended September 30, 2007 compared to $15,242 in the comparable period of 2006, primarily as a result of an increase in travel expenses.
GENERAL AND ADMINISTRATIVE EXPENSES
General and administrative expenses relating to non-related parties decreased to $1,305,320 in 2007 compared to $1,378,395 in 2006. The decrease was primarily attributable to a decrease in legal and professional fees, utilities, general office supplies and communications expenses. In 2007, general and administrative expenses consisted of the following: 17% was for depreciation of tangible assets, 6% was for consulting fees, 14% was for employee payroll, 11% was for fees for professional and auditing services, 3% was for investor relation expenses, 40% was for compensation expenses and 9% was for rent, utilities, general office supplies, communications and corporate insurance expenses. For 2006, 11% was for depreciation of tangible assets, 9% was for employee payroll, 27% was for fees for professional and auditing services, 1% was for investor relation expenses, 36% was for compensation expenses and 16% was for rent, utilities, general office supplies, communications and corporate insurance expenses.
General and administrative expenses - related parties for the nine months ended September 30, 2007 and 2006 were $110,719 and $109,501, respectively. These expenses included management fees and administrative expenses payable by the Company to LSH. In 2007 and 2006, LSH billed the Company's Malaysian subsidiaries, DASB and SDAM, administrative expenses of $20,719, 0, $19,501 and $0 for administration and clerical fees incurred by LSH on behalf of DASB and SDAM. The Company also incurred management fees of $90,000 each for 2007 and 2006. The management fee was charged on the basis of time spent for the administration and management services provided to the Company.
PREVIOUSLY DEFERRED GAIN ON SALE OF TECHNOLOGY - RELATED PARTY
The gain represents the recognition of a previously deferred gain of $84,547 and $66,356 for 2007 and 2006, respectively, related to a similar amount the Company received from its long-term receivable - related party. Each of the receivable balance and total deferred gain was $108,247, as of December 31, 2006. This amount arose in the year ended December 31, 1998 when the Company sold assets used in the operations of a subsidiary to a related company. Due to the uncertainty of collection of the related receivable, the related gain on the sale of the assets was deferred and is to be recognized only after all costs have been recovered and as payments are received. During the year ended December 31, 2002, payments received by the Company exceeded all remaining costs. As a result of cash payments received, the Company's long-term receivable - related party and deferred gain balances were each reduced to $25,954, as of September 30, 2007.
WRITE-OFF OF OLD VENDOR PAYABLES
The Company wrote off vendor payables totaling $35,512 in 2007. The amounts owed were at least three years old and management determined that such amounts were no longer owed.
INCOME TAXES
Income taxes represent the provision for the Company's Malaysian operations and are net of any available net operating losses. There was no provision for the Company's United States operations as such entities sustained taxable losses.
LIQUIDITY AND CAPITAL RESOURCES
As of September 30, 2007, the Company had net cash of $54,248.
In 2007, operations were funded primarily from internally generated funds and working capital advanced from time to time by the principal shareholder, director and officer of the Company. These advances bear no interest and have no fixed terms of repayment.
As of September 30, 2007, the Company owed Patrick Lim, the Company's principal shareholder, Chief Executive Officer and Chairman, $77,924. Additionally, as of September 30, 2007, the Company owed an affiliated company in which Mr. Lim has a financial interest, $121,901 for management fees and short-term cash advances made to a subsidiary of the Company for working capital purposes from time to time. These amounts are unsecured, bear no interest and have no fixed terms of repayment.
Net cash provided by operating activities was $8,945 in 2007 and was primarily the result of income and non-cash expenses.
Net cash used in investing activities totaled $6,543 in 2007 and was for the purchase of equipment.
Net cash provided by financing activities totaled $170,643 in 2007 and was due to the advances from an affiliated company totaling $103,590 and advances from the Company's principal shareholder of $67,053.
In July 2007, the Company entered into two separate agreements with an investor in private placements to sell 540,000 and 460,000 shares of its common stock at $.065 and $.07 per share for total consideration of $67,300. The closing dates for the private placements were August 10, 2007 and August 30, 2007, respectively.
For the fourth quarter of 2007, the Company will continue expanding into new businesses that include provision of outsourced business services and RFID enabled tracking solutions and supply chain management services. The Company . . .
News: Secured Digital Wins $1.128 Million Contract for Vehicle Tracking and Warehouse Management System
Thursday June 14, 10:40 am ET
NEW YORK--(BUSINESS WIRE)--Secured Digital Applications (OTCBB:SDGL - News), a leading provider of outsourced business process and IT applications, today announced that it received a $1.128 million contract to design, supply and install an integrated vehicle tracking and RFID warehouse management system for a Malaysian utility company.
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Secured Digital's integrated system incorporates advanced wireless technology and provides customers with the ability to monitor key business activities, such as vehicles, inventory levels, and shipping and receiving, in real time.
The contract provides for tracking units to be installed in the customer's vehicles to pinpoint their location using GPS satellite receiver and to transmit information to the utility company's Central Monitoring Station (CMS) via GPRS wireless data communication. At the CMS, digital maps provide real-time visibility of the geographic location of each vehicle, its direction, speed and route it has traveled.
The vehicle tracking and RFID warehouse management system will be integrated with the utility company's RFID enabled parking lots, maintenance depots and warehouses.
Secured Digital's warehouse management system provides basic functions for warehouse operations including physical inventory, shipping, receiving and actual duration of stops to perform a task, deviation from predicted times of arrival and departure. It also includes other advanced features like space management, batched order management, replenishment and cross docking warning.
"This is yet another endorsement of our ability to deliver value-added solutions to clients from a broad spectrum of industries, said Patrick Lim, Chairman and Chief Executive Officer of Secured Digital. "We will continuously innovate, develop and customize applications to help our customers maximize efficiency with their often limited operational budget."
About Secured Digital Applications, Inc:
Secured Digital Applications, Inc. is a global provider of outsourced business services in media production, information technology, digital document management and consulting. The Company serves customers in Southeast Asia as well as the United States. The Company's media production includes content for television, the Internet and free-standing digital displays, and also designs and installs on-site multi-media presentations. SDA also develops and implements solutions for biometric security systems, business process and RFID applications including inventory and asset tracking. For more information, please visit www.digitalapps.net, www.eystar.com and www.sdawmedia.com.
Safe Harbor Statement:
Information contained in this release includes forward-looking statements and information that is based on beliefs of, and information currently available to, management, as well as estimates and assumptions made by management. Forward-looking statements can be identified by the use of forward-looking terminology such as "believes", "expects", "is expected", "intends", "may", "will", "should", "anticipates", "plans" or the negative thereof. These forward looking statements often include forecasts and projections for future revenue and/or profits and are subject to revision and are not based on audited results. Forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause actual results to vary materially from historical results or from any future results expressed or implied in such forward-looking statements. Secured Digital Applications, Inc. does not undertake to update, revise or correct any forward-looking statements. Investors are cautioned that current results are not necessarily indicative of future results, and actual results may differ from projected amounts. For more complete information concerning factors that could affect the Company's results, reference is made to the Company's registration statements, reports and other documents filed with the Securities and Exchange Commission. Investors should carefully consider the preceding information before making an investment in the common stock of the Company.
Contact:
Newport Capital Consultants
Stephen Jones, 972-712-1039
esjones1@aol.com
--------------------------------------------------------------------------------
Source: Secured Digital Applications, Inc.
News: Secured Digital to Install RFID Container and Pallet Tracking Solution with Fleet Maintenance System
Monday June 4, 10:15 am ET
NEW YORK--(BUSINESS WIRE)--Secured Digital Applications, Inc. (OTCBB:SDGL - News), a leading provider of outsourced business process and IT applications, today announced that it was awarded a contract by a leading logistics operator in South East Asia. to provide a Web-based tracking and maintenance system using radio frequency identification (RFID) technology.
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Valued at $893,500.00, the contract is scheduled for completion by October 2007. The contract requires the installation of Secured Digital's RFID-based automatic tracking solution for containers and pallets, which will be integrated with the client's existing fleet maintenance system. The system will be implemented in the client's warehouses and vehicle maintenance depots in Malaysia and Singapore.
Apart from accurately identifying the location of pallets and containers and unscheduled movements occurring within the warehouse, the integrated system is designed to improve the location of cabs, trailers and other fleet vehicles within the RFID-enabled parking lots, maintenance depots and warehouses.
Patrick Lim, Chairman and Chief Executive Officer of Secured Digital, stated, "Despite facing intense competition from established RFID application providers, our solution was selected for its unique security features along with its WiFi software interface which allows users to access real time data through their personal digital assistant (PDA)."
About Secured Digital Applications, Inc:
Secured Digital Applications, Inc. is a global provider of outsourced business services in media production, information technology, digital document management and consulting. The Company serves customers in Southeast Asia as well as the United States. The Company's media production includes content for television, the Internet and free-standing digital displays, and also designs and installs on-site multi-media presentations. SDA also develops and implements solutions for biometric security systems, business process and RFID applications including inventory and asset tracking. For more information, please visit www.digitalapps.net, www.eystar.com, and www.sdawmedia.com
Safe Harbor Statement:
Information contained in this release includes forward-looking statements and information that is based on beliefs of, and information currently available to, management, as well as estimates and assumptions made by management. Forward-looking statements can be identified by the use of forward-looking terminology such as "believes", "expects", "is expected", "intends", "may", "will", "should", "anticipates", "plans" or the negative thereof. These forward looking statements often include forecasts and projections for future revenue and/or profits and are subject to revision and are not based on audited results. Forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause actual results to vary materially from historical results or from any future results expressed or implied in such forward-looking statements. Secured Digital Applications, Inc. does not undertake to update, revise or correct any forward-looking statements. Investors are cautioned that current results are not necessarily indicative of future results, and actual results may differ from projected amounts. For more complete information concerning factors that could affect the Company's results, reference is made to the Company's registration statements, reports and other documents filed with the Securities and Exchange Commission. Investors should carefully consider the preceding information before making an investment in the common stock of the Company.
Contact:
Newport Capital Consultants
Stephen Jones, 972-712-1039
esjones1@aol.com
--------------------------------------------------------------------------------
Source: Secured Digital Applications, Inc.
Took 20 mins to fills just now at .0014
Maybe its Ameritrade that took forwever.. Bought too early at a higher price this morning so decided to average down with another millilion shares. I could have fill a lot more at .0012-3 yesterday if it weren't for the Aemritrade glitches that freeze up all my funds. (*$(*&%
is that the right website for Mainline?
I think it should be http://www.mainlinecomm.com/ only because this one is based in Kentucky, as stated in the news.
Mix feelings..
New product market - exciting about potential revenue.
Unfortuantely, $$ figures matter. We haven't seen substantial or any news on what Roc Monee venue brought in. More product is not assuring to investors. The project took 12 months to complete which means some $$ burn rate. (is that long or adequate amount of time on recording an album anyone?d?) Maybe why the stock is down on the news
On the 3 years exclusive rights - more details on that will be nice. Does that mean 50/50 on cost sharing then 50/50 profit sharing?
Anyway, at work so just scan through the news and some rambling thoughts. Maybe I am talking none sense. lol Still sitting on my piles. Wishing and hoping..
here is the news link from RHNA..
http://biz.yahoo.com/pz/070301/114806.html This is getting interesting!! LOL.
I wouldn't put any money in this pig in the short term. If actual revenue is realized say from one CD and one artist is becoming known, after the price skyrocket, there are still time to get in and profit from the rise. Right now, any new money on this company is betting against the odd. IMHO.
Now, some cheerleading.. show me more news on the $$$... hopefully we will hear something on the tour in a couple of weeks? How about asking Roc to sign up for the next American Idol? lol.
Okay, back to sitting on the side line...
I don't care what this PR is really trying to say.. I only care for the rising stock price. Keep going.. I will break even when we hit 50 cents? LOL.. GO GO GO..
Just keep this junk paper till year end or when miracle happens, whichever come first.
Again, isn't it amazing that such fraud can be done legally? We seen this in many pinkies. We now lost another 50% of investment since pre-split. When is the next R/S coming? Maybe next week. LOL j/k
Someone told me a while back that if I ever wanted to start my own business, I can fund the operations by issuing stocks. He mentioned SEC doesn't like idea that but it can be done legally. So un-ethical. I prefer to be less rich than going that route.
Yes. 40/1 From RMDG to RMDN
So I guess G wasn't busy submitting crap to Universal for the tour. He was busy filing for the 1/40 RS without us knowing.
Oh well, no need for year end.. selling all my position tomorrow and hopefully I can afford a couple beer from whatever that is left.
you meant post 8186 on a former IR reply? When did you get that email? He sounded like he didn't get paid for his service and is bad mouthing the company. I also think its unprofessional of him telling former client's perspective investors that there will be a RS. Even though it may not be far from the truth.
Also, if Lovito hasn't work with RMDG for months, he may not know all the latest development the company has. Majority of pinkies or OTC dilutes, I think. How they use the fund is crucial. While I am not happy with the company and stock price, RMDG did manage to cut out a CD, put it on the market (amazon) and promote it via some venues. They did more than some other Scams I bought into over the last 5-6 years. lol
Anyway. I think anyone looking to get in should hold off till sales figures come out, if that ever happen. Current holders, either tuck it into the junk pile or sell and move on. Of course, just my opinion.
RMP is right on with his estimate
My origional investment will worth about one shinny penny by the time RMD release their first finanicial #. LOL Sales from all venues last year must be weak. Otherwise, we would have seen some press release by now. Maybe we will get some insight in the next investor update?
Anyway, I am holding till end of the year or whenever this thing rises substantially from current level, whichever comes first.
We need great news.. not just good news. lol
Unless we get sales/revenue figures, I don't think this one will move upward. IMO. But again, we are on the ground floor so I welcome any update the management can spare.
Game over? Everyone left the building? Or we are just waiting for the tour to happen and hoping for some revenue #s?
I hate to watch this thing daily but don't want to miss any opportunity for an exit! I guess I have 11 months to go before time for tax loss sale. Or, maybe a nice surprise sometime this year? That would be nice.
Got most loss back on CIVX already since I bought it at the LOW. Yeepee.. Will be icing on the cake if this one moves up from here.
Well..
According to pumpers, nothing.
According to bashers, everything.
According to me, I have no clue but holding on to my shares and pray for higher level of PPS. Its easy to hold it long when you see small yet on average positive upward movement. Otherwise, it casts doubts in investors mind from time to time. My only complain is the lack of news. Perhaps some update on their corporate site. Anyway, lets hope for 5 green, 1 red going forward for a change.
Edit: thought I saw green today. wishful thinking. Anyway, hoping for a trend reversal soon so we see more green than red.