10Q is out - let's see how things staked up to my short term forecast - 10Q results shown in bold for comparison purposes after my initial forecast:
Short term Forecast
Outstanding shares = Low of 30 million / High of 50 million (1st quarter 10Q) - 10Q = 25.8 million**
**see subsequent events below
1st Quarterly Sales = Low of $20k (flat to 4Q), High of $40k (double) - 10Q = $2.3k
Gross Margin after cost of goods = $4k to $8k (20% gross margin to remain flat) - 10Q = negative $717
Assets = Hi/Low of $0.6 million (I do not expect any meaningful change) - 10Q = $0.47 million
Quarterly Operating Expenses = Low $1.0 million to a High of $1.5 million for the quarter (expected to be slightly higher based on NY Toy Fair and HEB launch) - 10Q = $0.55 million
Quarterly Interest expense = Low/High of $160k (I expect this to be flat - an increase is expected due to further new debt created partially offset by better financing promised by the $500k infusion) - 10Q = $415k
Working Capital deficit = Low of $4.0 million/ High of $4.5 million (attributed to ongoing cash drain to fund operations)
Convertible notes = Low of $0.6 million to a high of $1.0 million (anything in this lower range would be outstanding and a proper use of the promised $500k infusion) - 10Q = $4.1 million
Company shares repurchased = Low/High of 0 (the company would be foolish to attempt this at this time) - 10Q = $0
Regarding the convertible debts - last financials there were 46 convertible debts for about $1 million, less a discount of $0.4 million = $0.6 million. The current quarter shows that the convertible debt increased to $1.2 million. After accounting for the $0.42 million discount, these convertibles now stand at $0.86 million.
More notes:
We are in default on the $30,000 note payable at March 31, 2014
During the three months ended March 31, 2014, we issued a total of 692,053 shares of our common stock
The good - Decreased accrued interest payable by $183, decreased convertible debentures by $22,217, decreased debt discount by $8,911, decreased derivative liability by $124,501
The not so good - Increased debt discount and derivative liability by $173,000. Increased convertible debentures and prepaid consulting services by $60,000.
Subsequent events:
To fund our operations subsequent to March 31, 2014, we incurred additional indebtedness totaling $139,632, consisting of convertible debentures totaling $135,632 and short-term advances of $4,000.
Subsequent to March 31, 2014, we issued a total of 23,963,687** shares of our common stock: 39,668 shares for unissued common shares; 16,200,000 shares to our founder, officers and directors for services valued at $972,000; 340,000 shares for consulting services valued at $20,400; and 7,384,019 shares for debt conversion of $68,529.
We do not have sufficient cash on hand at March 31, 2014 to fund future operations.
I could not find the $500k advertised infusion but am still digging thru the financials....
