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ASPN 8-K filed Looks like no inpact.
http://www.pinksheets.com/quote/print_filings.jsp?url=%2Fredirect.asp%3Ffilename%3D0001000096%252D06...
More simply, why couldn't we just have 2 officers deciding they've done well for the company & deserve a little pocket change. Their number one goal should always be to make money for themselves & not to line our pockets. 120,000 shares at 5$ is a measly 600,000. Their past decisions have done well for me & I'll trust their future decisions until I have reason to believe otherwise. Until then, its business as usual.
Another foregone conclusion IMO, I believe they are smart enough to know, that being listed on a new exchange will put their shares in front of a whole new audience & allow them to be margined.
FFF, My guess is thats what your paying (.0005) now & HOPING to catch the next upcoming pop. Say its not true.
Added a nice position of BSIC today to recent EGY & ASPN purchases. I'm thinking with the recent consolidation & hit wells that its ready for an ASPN, FPP move.
ASPN, Hoping to lose the seller when the numbers come out & maybe for a new listing.
bbotcs, PDGE I bet Barrons is on our side now. Being fully aware of the application & process, they would not risk future profits by hurting the current share price.
And nobody here is concerned that such a good sounding PR leaves us near the all time lows after 100 million shares are traded?
verylongonmfys, How do you think we got to an OS of 2 billion from 260 million. Those shares are out there & who knows where.
Being near an entrance in the show is nice as is having a slot with Whole Foods ( Lord knows what Whole Foods can do ) . It all wont matter if the Company is not concerned about building share holder value.
lol My Ameritrade last trade showes 310 million at .0006
10 Million shares trade just purchased at the ask, along with the quiet accumulation the last few weeks, leads me to believe that their must be some new developments in the business plan.
MSGI, My bad decision to hold some & I remember that post, but my emotions made me keep a few. My mentor Jessie Livermore was slapping me around after holding through that. I made my decision based on my DD & the fact that I believed the huge 2nd half would still show up & not knowing about the reporting mishap. Anyways that was just amazing to watch today & looking forward to Monday.
MSGI & Manny AXJ, I bought after DD on MSGI rec. months ago after he hooked me on VPHM & predicted AXJ to be A candidate for the next VPHM. I sold over half on the break down but never thought it would go as low as it did. The misrecorded 2nd Q, AMEX delisting threat, management shake up, lowered warrent conversion prices, threat of the lack of finances to carry on & the plain & blatent silence from the company after a run of tremendous news & promise, left me feeling like a bag holder. I talked with their IR depertment a few weeks ago & he assured me he spoke with AMEX himself & he was positive AXJ would have no problem staying qualified for the AMEX. We got the official assurance today & that was huge. He also said new management was getting a wrap around every contract the company was involved in & that they would talk when they were sure of what to say. He said buisness was normal & their factory was busy producing product as far as he knew. He is currently pushing the company to talk & issue PR'S. I have yet to hear where all the missing millions of revenue went & still think the company will have a bonified answer soon, furthermore, with the new China FDA approval after sucessful testing of their diabeties drug, I am confident they will find the financing they need & probably the low interest loan they were persuing from the Chinese government. Another factor was that I saw it drop from 1.25 to .30 on very low volume & figured it would not take mush to get back to that level. I took a chance & tripled my position the last few weeks, buying as low as .40 & even added this morning. My original shares are now in the black as well. Being 2 for 2 with MSGI I put him back on my favorite list. Thanks MSGI for the Christmas gift & I'm glad you got some more this AM. I believe like you, that this news is larger than the news that carried it to 2.50 & 2.50 was cheap relative to the profitable 3rd & 4th quarters & 20 million in revenue they were touting for the year. Lot of investors have not even seen todays news yet.
Take care & GLTA
FFF,The fact that the price is holding now is telling me that the recent seemingly endless supply of shares available at whatever the market would bare is gone. I did some testing & buying at the lower prices the last week & the MM's were very stingy & not selling at their ask price. Different than before.
Have you guys noticed the supply of shares for sale is low? I think the best thing that could happen would be a partnership with a buyer who brings something measureable to the table. We really need to see the intent for the extra shares.
Not a bad PR. We still need to see some numbers & how are the reorders going? Why didn't they approve e-water?
Creed,
Did Bob give you any indication as to weather or not its a good or bad PR. How was his spirit, up, down, or defeated? Did you get a good or bad feeling? Thanks in advance.
Checkmate28
'Creede Bighorns' I think your righ on. I added up the increased shares in the float & took an average share price from those months & cane up with about a million being raised. that doesn't bother me as it was needred to get the prouct developed & into distribution. There has been strength lately. What some see as dilution may be investors who bought higher seeing a chance at getting out on the strength of a PR. I have a friend that bought over 5 million yesterday & some the day before at .0009. It sat all day Friday un filled.
Rogue, Does Tony, Anthony Lanza or family have anything to do with the current company or is he the management that is being sued? I would imagine if he's the mgt being sued that he is slick enough to have covered his tracks & the company won't be collecting anything. If hes still involved, then the integrity of the whole company should be questioned. I've had conversations with that character in the past & don't have much respect for him.
MAKIN CASH, Lot of fools making profits trading integrity for dollars. My morals effect what I post. What I post is what I believe right or wrong. If I or onyone else has to decieve people to manipulate the price than I believe them to be foolish. Posting sound information wheather positive or negative, fact or opinion is not foolish.
What goes around comes around & there is a larger judge of this world than you or I.
just for thought Checkmate28
FFF, Those PR's that didn't come to fruition don't concern me at all. They are the companys attempt to grow their business & put good profitable products out. They kept us, the investors up to date with their progress in persuing sales & profits. Some deals made sence to the company & some didn't. Maybe something better came along. Normal business IMO.
When your looking for a car or home, you tell people around you about what you found, then you change your mind when you find something that makes more sence. Just you being fiscally responsible.
Whats inportant is the company has a plan & is inplementing it now. The rumors are turning to facts. If everything was fact & good numbers were filed as you would like, then the PPS would be .10 now & we would not have the opportunity we have.
Risk vs reward ratio & supply & demand all lookijng better & better. If MM's walk this down on low volume then good for us. The value at the new price is even better & the risk vs reward ratio will inprove.
You will look foolish here in a little while even is the float increases some.
All my opinions of coarse
Explorer, Usually the first order goes in with an invoice & needs to be paid before the reorder. In other words, deliveries are not usually COD. This creats a lot of financial burdon on a company in the beginning untill the revenue flow is even or greater than the $ spent getting the product bottled & ready for delivery.
Some of the front end cost I'm was talking about is reserch & development, purchising the ingredients, designing & printing the lables, botteling the product, marketing the product all of which has to be done before the company sees any revenues.
If sales happen like we think, we should see a nice stream of revenues & IMO earning relatively soon.
IMO Rush Net will be eager to post these numbers for us when they are availably. All things in there own time.
CHECKMATE28
Opinions of coarse
FFF, I've always stated that suply & demand move a stock & that the supply & demand are affected be many different situations. I've also always disputed your claim, that sales of beverages will never have any effect on the PPS. When the sales # resisidual $ are substancial & verifiable, this thing will rocket. Obviously MM manipulation as well as FFF manipulation can have an effect on the PPS.
You crack me up with your play on words!!
GLTY & make some money!
Gamood Things looking real good. Been trying to post this msg to SirTemp on RB but its not been taking long messages. Dilution was brought up & its possible, but inprobable at this point. We are at a new higher support level & I see strength here in the fact that we have sustained interest in buying. Some sold on the news for a quick + 30%, some have been waiting for a chance to get out, but it is IMO going to be hard to sell at this level & buy cheaper. I tried to trade a few but can't get them them back below .001
Facts are, we still only have news of distribution & distribution agreements & not actual sales & reorder numbers. The reorders will be key as thats when the customers have to pay there first bill to RUSH Net. In reality, RUSH is paying the upfront costs to get the product out the first time. That explains the previous need to increase the float.
Its taking a little time, but lets take things as they come. The progress is flowing pretty well right now. Soon these orders will lead to revenue generating reorders & you can bet that Bob will want those numbers out when they are substantial. It won't IMO take much e-water sales to make this company profitable as the margine should be huge. I'll go out on a limb here to predict that we will all be suprised at the numbers & it will only be a short while before the revenue well is flowing strong. Remember the overhead is low here.
I am happy to see that Bob is not pumping here, just delivering news of progress. Also glad I'm not stupid in hanging here, beliving in Mr Corrs ability to get this deal through.
I'm content to just sit here & let things unfold as I know they will. The PPS will take care of itself as this will look more & more under valued as things progress from rumors to real business.
Just my honest opinion but what do I know?
famous quote from FFF
Checkmate28
logman, Buy low sell high. Its at least +80% for alot of new money & a lot of old money may have been looking for the first bump to get out. Not to worry here the price will take care of itself soon IMO.
MSGI AXJ has been hammered lately due to the uncertanty of the finances to fund the alleged huge growth of the last 2 quarters. The company has changed management 180 degrees & otherwise not spoken in awhile. I'm wondering if its your style to hit the bottom plays. Seems risk vs reward ratio is very favorable at these levels. My concerns are that the company is not talking & there is no buying fight now. Maybe its the style of the new management to let the filings do the talking or maybe something is seriously wrong. As you know,they booked alot of business in the first half & were profitable for the first time in the 2nd Q. Then they lowered the warrent prices & converted for $ 2 million in cash. Big question is do they have enough, or are sales high enough to get the company a clean financing deal. One ruor is that the Chinese gov will float them a low interest loan. Wondering what your thoughts are.
LAS VEGAS, NV, Jul 21, 2005 (MARKET WIRE via COMTEX) -- AXM Pharma, Inc. (AXJ) announced today that it has shipped and booked sales in excess of $3.1 million in the second quarter and expects to post a quarterly profit. Through the Company's newly formed Asia-Pacific subsidiaries, sales of approximately US$2.8 million of Sunkist products were achieved in the Hong Kong, Shanghai and Taiwan markets during June 2005. AXM also successfully implemented its Sunkist product launch in these three key markets in Asia-Pacific. The Company's regional distribution relationship with Zuellig Pharma has been fully established and 9 various Sunkist products have been rolled-out to key retailers in Asia-Pacific. Such retailers include high consumer traffic outlets such as Mannings, Watsons, 7-11, and leading pharmacies, comprising a total of approximately 10,000 outlets in the initial phase of distribution coverage.
The net income figure will include costs and one-time charges relative to labeling, packaging and distribution setup charges. Excluding these one-time charges, the core profitability of the company would be even higher. The net income is two quarters ahead of management's most recent estimates. The Company expects to release detailed second quarter results before August 15th, 2005.
As of June 30th, 2005 AXM has executed a total of 10 distribution agreements totaling more than $20 million in potential sales. The Company has grown to over 150 employees operating a 120,000 square foot pharmaceutical manufacturing facility with a $200 million per year revenue capacity. With 42 drug licenses, 14 pharmaceutical products and agreements to sell in a large number of Asian countries, AXM has built the base for exponential profitable growth in the coming years.
FFF, Come on, your playing on words. I never said sales were all that moved a stock, only that they can move a stock & there are many others as well. You said sales would never move a stock.
DNDT made its moves up & down based on numbers & rumors of numbers.
EZEN is a rare BB stock that is driven by numbers. Most inversors are there for the 7 straight q's of pos earnings & for the company quidance for even bigger numbers. I looked at the PPS today, looking to add, but thought I could find a better buy else where than the 2.65 for EZEN. This up coming Q is sure to be a good one. If those sales numbers are down than the stock will go down & disprove your theory again. Being that EZEN is doing projects for the government military it is as an iceburg with only 10% of the good showing. Because of this we have to wait 3 months every time for the numbers & then the stock adjusts. Remember EZEN was $50 some time back. They know the game. I'd put my grandmothers retirement there.
There is not a single sharp investor on this board that would agree with your statement " PPS is ONLY affected by people buying the stock due to their belief in the company's Press Releases"
GLTA
LoveAGain, Rush real time Allicin is the product that will deal with the flu virus. The live Allicin can actually penetrate the shell of many viruses & kill it. I'm quite sure they are working on getting that product out soon. What better time than now. That is the second part of the RUSH story that has not seen much attention lately. If that product comes out, the impact will be large IMO.
RUFF, RSHN update. It's happening now. IMO much more is coming soon as this company starts collecting revenues & hopefully a public filing as the CEO has told me. There is a huge network to distribute these products out side of the following PR. & much more news on its way soon. IMO the grand plan is in action. E-water is soon to by big & it wont take much water sales to make this a profitable company. Remember there are no factories or large overhead to keep going. The upfront cash & work has already been put in & its time for the company to collect some big checks. Its all about the sales now, bottom line.
BSNS WIRE) RushNet Appoints Kehe Food Distributors; e-water(TM) Goes Nationw
de
RushNet Appoints Kehe Food Distributors; e-water(TM) Goes Nationwide
Business Editors / Beverage Writers
BLUE ISLAND, Ill.--(BUSINESS WIRE)--Oct. 25, 2005--
RushNet, Inc. (Pink Sheets:RSHN.PK) is pleased to
announce that Kehe Food Distributors, a major specialty and natural
foods wholesaler operating in 35 states and serving over 9000 grocery
stores, has accepted RushNet's licensed beverages Ginseng Rush(TM) and
Ginseng Rush XXX(TM) for national distribution. Accounts for Kehe Food
include the biggest names in the grocery business such as Kroger's
(the nation's largest grocery chain), Albertson's, H.E.B. and many
others.
The company also announces that its wholly owned e-water(TM) has
been shipped to a regional distributor of natural foods in
Bloomington, Indiana. The owner of this regional distributor, an
important North American wholesaler, has authorized three additional
distribution points across the U.S.A. to take e-water(TM). Next month,
RushNet expects full nationwide authorization of e-water(TM) for
remaining locations in this major wholesaler's network.
e-water(TM) is a unique bottled water--an innovative blend of
spring water, over 50 electrolytes and fulvic acid. All-natural fulvic
acid has been shown to increase bio-assimilation of electrolyte
nutrients, restore cellular balance, and aid in hydration.
Robert Corr, president of RushNet, Inc., said, "We are delighted
to welcome Kehe Food as a Ginseng Rush(TM) distributor. Kehe is one of
the most successful and respected companies in the food industry and
serves all the important retail grocers. The entry of Kehe Food should
further accelerate RushNet's rapid growth."
Corr added, "We expect our e-water(TM) to be a big item. By the
end of November, RushNet should enjoy national distribution of this
revolutionary water. Everyone who drinks e-water(TM) loves the feeling
they get from it."
RushNet Inc. is the licensed marketing agent for Rush Beverage
Company products and brand owner of e-water(TM). www.enjoytherush.com
Disclaimer: The Company relies upon Safe Harbor Laws of 1933, 1934
and 1995 for all public news releases. Statements, which are not
historical facts, are forward-looking statements. The company, through
its management, makes forward-looking public statements concerning its
expected future operations, performance and other developments. Such
forward-looking statements are necessarily estimates reflecting the
company's best judgment based upon current information and involve a
number of risks and uncertainties, and there can be no assurance that
other factors will not affect the accuracy of such forward-looking
statements. It is impossible to identify all such factors. Factors
which could cause actual results to differ materially from those
estimated by the company include, but are not limited to, government
regulation; managing and maintaining growth; the effect of adverse
publicity; litigation; competition; and other factors which may be
identified from time to time in the company's public
Flaflyersfan How timely. Today we have proof that beverage sales do make a difference by causing a raise in demand & a raise in the PPS. If only you would be forth right enough to acknowledge that.
nanopatent, I know why hes here. We've been playfully bantering for a couple years now & he brings alot to the table to think about. I just like to call a spade a spade & thriefore have to call him on a few things.
Take care!
flaflyersfan, Your question was not clear again. Who bottles Rushnet Bevs you ask. If thats your question, than read the press releases.
BLUE ISLAND, Ill., Feb 23, 2005 (BUSINESS WIRE) -- V-Net Beverage, Inc. (Pink Sheets: VNTB.PK) has scheduled a full-production run of new e-Water(TM) for the first week of March 2005 in Illinois. e-Water(TM) is a boldly innovative bottled water containing over 70 electrolytes activated with Fulvic acid. To facilitate national coverage, California production of e-Water(TM) will commence in April, with production in Florida planned for summer 2005. ...
If your asking who owns what, than look at this PR.
Separately, RushNet, Inc., marketing agent for Rush Beverage Company, clarified its per case royalty arrangements pertaining to the licensed “Rush” brands. RushNet, Inc. retains 62.5 % of the net revenue from sales of these brands, and is brand owner of e-water™ .
If you dont think water is profitable or massive distribution & sales will affect the share price, than you should probably stay safe & stay out. if you think the contrary than grab some more cheap shares.
You made a reckless statement on Meritage Wines. Please clarify. Weather it was created the day before the press release means nothing. The following info might.
3/30/2005 1:57:03 PM
BLUE ISLAND, Ill. & RANCHO CORDOVA, Calif., Mar 30, 2005 (BUSINESS WIRE) -- V-Net Beverage, Inc (Pink Sheets:VNTB.PK) and Meritage Wine Brokerage announced today that V-Net is exercising its option to further its ownership in Meritage. V-Net's increased equity position in the company provides V-Net a definitive development and distribution role of Meritage's new organic herbal infused line of wines. ...
I'm not stuck here. I'm happy to be here, as things look ripe to me. Make sure your around when soda sales & my investment here is booming. Lets make a gentlemans deal. I'll be sure to tell you you were right if I get stuck here & you be sure to tell me here on the board you were wrong if sales & revenues make a difference in the pps. Will you make that deal?
I'll agree right now I like this investment alot. When I step back & evaluate things I still come to the same conclusion. RUSH was a company that got broad sideded by a product that went sour, has regrouped with a new flagship product & beverage catagory, assembled a massive distribution with many new products & is ready to make a mark in the beverage industry.
Will you make the deal????
Checkmate28
FF, There is not another person in the world that believes you when you say that unless you played on words with the word single. you are right in saying, a single bottle sold will not attect the PPS, but to keep touting that revenue & earning will never matter is arrogantly wrong. If your trying to say these small companies often self finance with shares, than I think were all on board with you. Its risk vs reward & supply & demand & they are driven by real & rumored events as well as what they do with their stock. You used to bash every PR as untrue manipulation, but I noticed your list is getting smaller & smaller, as whats not real yet becomes real. Soon we may see Meritage wine enhanced by Rush ingredients. If you believe that what the company does with business does not matter, than why do you spend so much time trying to create doubt in what the company does & says? How long will you post non pertainent information that is older that this company & has nothing to do with the current CEO?
Buzzys coffee is dead long ago, but another line could be in the works. I would be all over a ginseng enhanced coffee, buying it at home & giving it as gifts to friends & family. Coffees & enhanced beverages are consumed by 2 different crowds. It would be a natural for RushNet.
Checkmate28
NGS, Bobwins, Hank or any other O & G expert, Would you be so kind as to value NGS & give your opinion as to weather its over bought at this time & what would be a good PE for a service company such as NGS. Seems the current PE is around 50 to 70. Also wondering why we have't seen NGS here on the board very much during the recent run up.
Thanks CM
MED Does anyone feel MED is undervalued & worth a purchase here under 4.00?
The company expects to generate revenue of $34.5 million to $36.5 million for the year with a pretax profit of $0.26 to $0.30 per diluted share. For 6 months they earned .10 Looks like there calling for a strong 2nd half.
RSHN If you don't have, you better get on it soon. The plan looks ready to happen. Last sept mgt took this to a 4 bagger in a few months & things look better this time around.
Bob Corr has laid out a huge distribution network across the nation & the products are right.
Anyone heard any chatter from Shakerz crew?
AXJ Down on very low volume. Obviously some hoped for more profit but the company has done most of what they said. Growth causing cash problems. They have booked 20 million in revenues for this year per the CC. The PR machine will soon be churning those contracts & who knows someone might step up with a good financing offer to help an emerging company with a good out look.
The out look has always been for a strong 2nd half.
Just my hopeful 2 cents.
Most were purchased at 1.64 so I'm about even. I wish I'd sold at 2.50 lol
GLTA
MSGI How about the fact that they said in the CC that they could get to 15 million in quarterly sales in the next 12 months? Seems down side is nearly nill, but short term upside will be capped by the financing over hang.
Ruff, DNFS like EZEN will be discovered one day by more than a few. Revenues up 38% for the Q but only 16% for 6 mths. Earnings nearly the same for 6 mths compared to "04" The next quarter should tell us if the momentum continues.
Defense Industries International Reports Second Quarter 2005 Financial Results
08/16 7:00 am (BW)
Story 0287 (DFNS)
ASHKELON, Israel--(BUSINESS WIRE)--Aug. 16, 2005 --Defense Industries International, Inc. (OTCBB:DFNS), a leading manufacturer and global provider of personal military and civilian protective equipment and supplies, announced yesterday its financial results for the second quarter and the six month period ended June 30, 2005.
Highlights
-- Revenues for the second quarter of 2005 increased 38% to $3.9
million from $2.8 million the second quarter of 2004.
-- Gross profit for the second quarter increased 37% to $1.2
million.
-- Net income for the second quarter increased to $205,113.
Revenues for the second quarter of 2005 were $3.9 million, compared to $2.8 million reported in the second quarter of 2004, an increase of 39%. The increase is primarily attributable to the increase of sales to local markets, including sales of Defense's subsidiary, Owen Mills, to the U.S. civilian market.
Export sales for the second quarter of 2005 increased to $2 million compared to $1.9 million reported in the second quarter of 2004. Sales to the local market (civilian and military) for the second quarter of 2005 were $1.8 million, compared to local sales of $970,255 for the second quarter of 2004.
Gross profit for the second quarter of 2005 rose 37% to $1,174,470 compared to $854,527 for the comparable quarter in 2004. The increase in gross profit is mainly attributable to the increase in total sales.
Selling expenses for the second quarter of 2005 decreased to $234,729 compared to $270,437 in the second quarter of 2004. The decrease in selling expenses is attributable to lower commissions paid to sales agents. General and administrative expenses for the second quarter increased to $560,951 compared to $376,892 for the second quarter of 2004. This increase is mainly a result of the growth in professional fees and additional expenses arising from the acquisition of Owen Mills Company.
Net income for the second quarter of 2005 was $205,111, or $0.01 per share, compared with net income of $83,110, or $0.00 per share for the second quarter of 2004.
Revenues for the six months ended June 30, 2005 were $7.6 million compared to $6.6 million reported in the same period in 2004, an increase of 15.5%. Net income for the six months ended June 30, 2005 totaled $288,351, or $0.01 per share, compared with $432,334, or $0.02 per share for the comparable period in 2004.
Commenting on the results, Joseph Fostbinder, CEO of Defense Industries, said: "We are pleased with our second quarter results. Our second quarter results reflect an increase in our Company's total revenues and domestic sales along with increased gross profit and net income growth."
Mr. Fostbinder continued, "As part of our strategy to expand our international operations, we acquired Owen Mills Company, a Los-Angeles-based company specializing in military and industrial sewing of marine and ballistic fabric products, in February 2005. The initial influence of this acquisition on our revenues is already evident in our second quarter results. We believe more than ever in the potential of Owen Mills and that the combined expertise and synergy between Defense and Owen Mills will enable us to offer diversified solutions to existing and potential customers.
"During the second quarter, we witnessed increased demand for our products in the domestic market, especially in the domestic military market. We hope that this positive trend will continue in the upcoming quarters. During the quarter we invested substantial resources in upgrading our existing products and in developing new ones. One of these products is a new model of bullet-proof vest. We are working on improving its adaptability to different weather conditions as well as making it more comfortable. We expect to launch the new bullet-proof vests soon and we anticipate enhanced demand from both existing and potential clients to these unparalleled vests.
"Looking forward, we plan to capitalize on Owen Mills' platform in order to achieve increased international sales and long-term growth," concluded Mr. Fostbinder.
Niles DNDT I'm out temporarily. Current CEO Dennis Key has really turned things around the last year. There is no question in my mind that they will continue to grow revenues & opperate more efficiently. There is ALSO a good chance they will make a good aquisition with the new cash, also greater bargaining power for getting needed supplys & equipment ahead of the projects as opposed to paying top dollar for having to buy at the last minute will help.
The big question in my mind is what will Cornwell do to DNDT in the short term. In the end, it will be in their best interest to help get the PPS up.
CM
AXJ Now a VMC Conferecce call going on now
http://tools.thestreet.com/tsc/quotes.html?pg=qcn&guid={D0A4FFB6-58C8-4201-A6D2-76ED59EF90EB}&am...
AXM Pharma Announces Record Revenue and Profit
- Market Wire
LAS VEGAS, NV, Aug 15, 2005 (MARKET WIRE via COMTEX) -- AXM Pharma, Inc. announced today financial results for the quarter ended June 30, 2005.
During the three-month period ended June 30, 2005 AXM entered into the Company's first three international markets for its line of Sunkist labeled products. The new markets where products were launched were Hong Kong, Taiwan and Shanghai. This -- combined with the ramp up of AXM's new factory in Shenyang, China -- enabled the Company to record the best sales quarter in its history. Sales for the three months ended June 30, 2005 were $3,220,978, representing a sales increase of $2,242,315 or 229%, from the three-month period ended June 30, 2004. Sales for the six-month period ended June 30, 2005 were $3,249,238 compared to $2,097,628 for the six months ended June 30, 2004. This represents an increase of $1,151,610 or 54%.
Gross profit for the three months ended June 30, 2005 was $1,707,838 compared to $513,228 for the three-month period ended June 30, 2004, an increase of $1,194,610 and 232%. This tripling of the gross profit is attributable to the record sales reported for the quarter. For the six months ended June 30, 2005, the gross profit was $1,712,623 or an increase of $660,767, 62% greater than the comparable six-month period last year. Operating income for the three months ended June 30, 2005 was $678,348 compared to an operating loss of $4,353,251.
During the quarter ended June 30, 2005, AXM had total general and administrative expense of $1,029,490 compared to $4,866,479 for the comparable period in 2004, a decrease of $3,836,989. This general and administrative expense included $301,266 in non-cash general and administrative expense. For the sixth month period ended June 30, 2005, we had total general and administrative expenses of $4,136,568 compared to $7,900,493, a decrease of $3,763,925. This general and administrative expense included approximately $1,600,000 in non-cash general administrative expense.
The reason for the significant improvement in both cash and non-cash general and administrative expenses was the lack of significant consulting expense as compared to the prior year while AXM's new factory was undergoing construction and the Company was establishing infrastructure to enter various markets.
During the quarter the Company incurred $498,939 in interest expense with $126,755 in interest on bank loans in AXM's subsidiary in Shenyang China and $372,184 in interest charges relating to the debt discount on notes payable financing in April 2005.
AXM generated its first quarterly net profit two quarters ahead of management expectations. For the three months ended June 30, 2005 AXM had net income of $179,409 compared to a loss of $4,353,251 for the three months ended June 30, 2004. This represents an improvement of $4,532,660.
This significant improvement in operating results was the result of large increases in sales and corresponding gross profit improvements coupled with reductions in general and administrative expense as well as the reduction of costs associated with completion of our factory and resultant reductions in outside consulting expense.
"We are extremely pleased with the progress we have made as a company in 2005," said Chet Howard, CEO, AXM Pharma Inc. "We have spent a considerable amount of time, capital, and effort to build a new factory and establish ourselves as a strong, independent player in both China and the broader Asian marketplace and we're proud of how far we have come."
AXM Pharma Inc., http://www.axmpharma.com, through its wholly owned subsidiary, Werke Pharmaceuticals, Inc., is the 100% owner of AXM Pharma Shenyang, Inc. ("AXM Shenyang"), a Wholly Foreign Owned Enterprise ("WFOE") under the laws of the People's Republic of China. AXM Shenyang is located in the City of Shenyang, in the Province of Liaoning, China. AXM Shenyang and its predecessor company Shenyang Tianwei Pharmaceutical Factory, Ltd. ("STPF"), has an operating history of approximately 10 years. AXM Shenyang historically has been a manufacturer of proprietary and generic pharmaceutical products, which include injectables, capsules, tablets, liquids and medicated skin products for export and domestic Chinese sales. For additional information on AXM Pharma Inc, please visit http://www.iccinfo.com or call Investor Communications Company, LLC at 866 562 0134.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements contained in this news release include certain predictions and projections that may be considered forward-looking statements under securities law. These statements involve a number of important risks and uncertainties that could cause actual results to differ materially including, but not limited to, the performance of joint venture partners, as well as other economic, competitive and technological factors involving the Company's operations, markets, services, products and prices. With respect to AXM, except for the historical information contained herein, the matters discussed in this news release are forward-looking statements involving risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. Potential risks and uncertainties include, but are not limited to, AXM's extremely limited operating history, uncertainties related to the Company's access to additional capital, competition and dependence on key management.
AXM PHARMA, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
June 30, December 31,
2005 2004
------------ ------------
ASSETS
Current Assets
Cash $ 559,382 $ 1,255,681
Accounts Receivable, net of
allowance 3,253,055 30,750
Inventory 2,186,815 2,002,130
Advances, Suppliers 1,000,770 442,121
Other Current Assets 2,980 0
------------ ------------
Total Current Assets 7,003,452 3,730,682
Property & Equipment, Net 7,661,524 7,160,376
Licenses 1,499,888 1,449,888
------------ ------------
TOTAL ASSETS $ 16,164,864 $ 12,340,946
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Short Term Loan $ 3,273,161 $ 1,001,668
Value Added Tax Payable 18,998 3,015
Accounts Payable and accrued expense 3,815,031 4,342,013
------------ ------------
Total Current Liabilities 7,107,190 5,346,696
Long Term Notes 372,184 0
STOCKHOLDERS' EQUITY
Series A, Preferred stock, $.001 par
value, 10,000,000 shares authorized,
938,200 shares issued and outstanding 938 1,675
Series B Preferred stock, $.001 par
value, 2,000,000 shares authorized,
no shares issued and outstanding - -
Series C Preferred stock, $.001 par
value, 100 shares authorized, 17.425
shares issued and outstanding - -
Common Stock, $.001 par value,
50,000,000 shares authorized,
19,564,085 shares issued and
outstanding 19,564 18,036
Additional paid-in capital 30,855,810 26,242,477
Accumulated deficit (22,190,822) (19,267,938)
------------ ------------
Total Equity 8,685,490 6,994,250
Liabilities and Equity $ 16,164,864 $ 12,340,943
============ ============
AXM PHARMA, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
2005 2004 2005 2004
----------- ----------- ----------- -----------
Revenues $ 3,220,978 $ 978,663 $ 3,249,238 $ 2,097,628
Cost of Revenues 1,513,140 465,435 1,536,615 1,045,772
----------- ----------- ----------- -----------
Gross Profit 1,707,838 513,228 1,712,623 1,051,856
General, Administrative
and Selling:
Cash 728,224 3,199,679 2,575,354 4,568,693
Non-cash 301,266 1,666,800 1,561,214 3,331,800
----------- ----------- ----------- -----------
Total general,
administrative
and selling 1,029,490 4,866,479 4,136,568 7,900,493
----------- ----------- ----------- -----------
Operating Income (Loss) 678,348 (4,353,251) (2,423,945) (6,848,637)
Interest Expense 498,939 - 498,939 -
----------- ----------- ----------- -----------
Net Income (Loss) $ 179,409 $(4,353,251) $(2,922,884) $(6,848,637)
Net Income (Loss)
applicable to
common shareholders:
Net Income (Loss) $ 179,409 $(4,353,251) $(2,922,884) $(6,848,637)
Beneficial conversion
features of
preferred stock - (827,838) - (1,775,466)
Deemed dividend
from beneficial
Conversion of
warrants (107,015) (84,051) (214,030) (221,440)
----------- ----------- ----------- -----------
Net Income (Loss)
applicable to
common shareholders $ 72,394 $(5,265,140) $(3,136,914) $(8,845,543)
=========== =========== =========== ===========
Net Income (Loss)
per share: $ 0.00 $ (0.35) $ (0.17) $ (0.60)
Basic and diluted
Weighted averaged
shares outstanding:
Basic and diluted 19,439,379 15,221,836 18,971,432 14,708,684
AXM PHARMA, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Six Months Ended June 30,
(Unaudited)
2005 2004
----------- -----------
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss $(2,922,884) $(6,848,637)
Adjustments to reconcile net loss to
cash used in operating activities:
Common stock issued for services
and interest 1,580,124 3,331,800
Depreciation and amortization 47,916 20,100
Non-cash interest expense 372,184 -
Changes in assets and liabilities:
Accounts receivable (3,222,305) 1,786,077
Advances, suppliers (558,649) 917,520
Inventories (184,685) (732,259)
Accounts payable and accrued expenses (526,982) (192,044)
Value added tax payable 15,983 (2,239,162)
----------- -----------
CASH FLOWS USED IN OPERATING ACTIVITIES (5,399,298) (3,956,605)
----------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures (602,044) (1,326,954)
----------- -----------
CASH FROM FINANCING ACTIVITIES
Proceeds from notes payable 3,034,000 6,492,963
Proceeds from bank loans 2,271,493 -
----------- -----------
CASH FROM FINANCING ACTIVITIES 5,305,493 6,492,963
----------- -----------
NET INCREASE IN CASH (695,849) 1,209,404
Cash, beginning of period 1,255,681 2,950,782
----------- -----------
Cash, end of period $ 559,832 $ 4,160,186
=========== ===========