Speedemissions Inc. (SPMI)

[FITX]

SPMI MUST READ

Below is my brief summary of the future outlook for SPMI. All information below is publicly available and quoted exactly from its primary source, cited below. This is intended to be strictly factual and not meant to portray any bias, form your own opinions.

The original document is linked below and each section is quoted with an associated page # for refrence.

Some notes from SPMI's 10K filed on March 28, 2014 for the period ending December 31, 2013. Linked here http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=9887291

1) We have experienced recurring net losses which have caused an accumulated deficit of $20,544,723 at December 31, 2013. We had a working capital deficit of $2,059,921 at December 31, 2013 compared to a working capital deficit of $1,301,115 at December 31, 2012.
--> This means the company is consistently losing more and more money for the past several years. (Page 4)

2) Net loss for the year ended December 31, 2013 was $814,482 or $(0.02) per share, compared to a net loss of $656,037 or $(0.02) per share for the year ended December 31, 2012. Revenues for the year ended December 31, 2013 decreased 656,664, or (8.5%), to $7,095,937 from $7,752,601 in the year ended December 31, 2012.
--> Not only has their yearly net loss increased by -20.56%, but their yearly revenues have also lost -8.5% (Page 4)

3) Our revenues for the fiscal year ended December 31, 2013 and for the fiscal year ended December 31, 2012 have been insufficient to attain profitable operations and to provide adequate levels of cash flow from operations. Our near-term liquidity and ability to continue as a going concern is dependent on our ability to generate sufficient revenues from our store operations to provide sufficient cash flow from operations to pay our current level of operating expenses, to provide for inventory purchases and to reduce past due amounts owed to vendors and service providers. No assurances can be given that the Company will be able to achieve sufficient levels of revenues in the near-term to provide adequate levels of cash flow from operations. As a result of the Company’s history of losses and financial condition, there is substantial doubt about the ability of the Company to continue as a going concern. (Page 4)

4) During the years ended December 31, 2013 and 2012, due to insufficient cash flow from operations and borrowing limitations under our line of credit facility, we have been extending payments owed to landlords and vendors beyond normal payment terms and deadlines. Until such vendors are paid within normal payment terms, no assurances can be given that required services and materials needed to support our operations will continue to be provided. In addition, no assurances can be given that vendors will not pursue legal means to collect past due balances owed. Any interruption of services or materials would likely have an adverse impact on our operations and could impact our ability to continue as a going concern. (Page 5)
--> The company clearly admits it hasnt even been able to pay its landlords.

5) Unless we obtain new sources of operating capital, our growth in 2014, if any, is expected to be limited to one new store and we anticipate that it would be financed through existing working capital and cash flow from operations, if any. We cannot be certain that we will be successful in generating sufficient cash flow from operations to expand our operations at all. Our growth and expansion would be curtailed if we are unable to generate sufficient cash flow to fund the growth and expansion. (Page 11)
--> They dont have enough money to open new stores.

6) Our revenues during the years ended December 31, 2013 and 2012, as well as to date in 2014, have been insufficient to attain profitable operations and to provide adequate levels of cash flow from operations. During the years ended December 31, 2013 and 2012, as well as to date in 2014, due to insufficient cash flow from operations and borrowing limitations under our line of credit facility, we have been extending landlords and vendors beyond normal payment terms. Until such vendors are paid within normal payment terms, no assurances can be given that required services and materials needed to support our operations will continue to be provided. In addition, no assurances can be given that vendors will not pursue legal means to collect past due balances owed. Any interruption of services or materials would likely have an adverse impact on our operations. (Page 11)
--> They anticipate getting sued for not paying their creditors and landlords.

7) We may be unable to attract enough consumers to cover our development expenses or our sales and marketing expenses to promote our iPhone application, Carbonga . Our profitability could be adversely affected if we are unable to attract and retain paying customers for Carbonga to cover our ongoing expenses related to Carbonga . (Page 13)
--> Their app is $4.99 on the app store, has no reviews, isnt even called Carbonga (its called Carbonga-SRI in the store), and as far as i can tell looks utterly useless and overpriced.

8)Our business now depends primarily upon the efforts of Mr. Richard A. Parlontieri, who currently serves as our President and Chief Executive Officer. We believe that the loss of Mr. Parlontieri’s services would have a materially adverse effect on us. In this regard, we note that we have entered into a rolling three-year employment agreement with Mr. Parlontieri. We maintain key-man life insurance on Mr. Parlontieri.

If our business grows and expands, we will need the services of other persons to fill key positions in our company. We may not be able to attract, or retain, competent, qualified and experienced individuals to direct and manage our business due to our limited resources. The absence of skilled persons within our company will have a materially adverse effect on us and the value of our common stock.
--> Havent you given up at this point?