RTG Files 10-K, Poised For Expansion In 2013 News provided by RTG Ventures, Inc. Dec 19, 2012, 11:38 ET
NEW YORK, Dec. 19, 2012 /PRNewswire/ -- RTG Ventures, Inc.(OTCQB: RTGV) released its annual audit, its 10-K, late Friday, December 14, 2012 summarizing its activities for the fiscal year 2012. The management has observed there has been too much misunderstanding around people thinking that everything should go according to plan. Plans must be modified when circumstances changeas they did in the Fall of 2011. That is business and RTG made some hard decisions then which were positively quantified in the 2012 10-K. The filing itself is categorized into sections by the SEC, which is intended to inform the public and shareholders of its business, It is, however, long and dense, so the Company is highlighting and actually quoting from certain sections in order to clarify and state pertinent fact.
The Brand Entertain business combination is alive and well. "During the last quarter of fiscal 2012, RTG Ventures entered into an agreement with Brand Entertain. RTG Ventures, Inc. and Brand Entertain have agreed to restructure their agreement retroactively to June 11, 2012. Brand Entertain is a partnership and there were certain issues with partnership financials which suggested the business combination be construed as a collaborative/cooperative venture, rather than an acquisition. Both parties agreed the arrangement to be mutually beneficial and that was agreed by RTG's professional advisors. As such, RTG expects to benefit from Brand Entertain's platforms in the pipeline since a valuation would have taken place in one year's time in either arrangement. See Exhibit 10.9 - Amendment to Agreement to Purchase LLC Interests." Jeff Wattenberg is a Director of RTG since June, 2012 and the Preferred Shares Series 2 have been reserved for this transaction following the same successful model established for Digital Clarity.
We draw your attention to Item 7 "Management's Discussion and Analysis of Financial Condition and Results of Operation," which describes the business post-streamlining, bringing technology development in-house and establishing a business development template which will provide a growth pattern geographically through partnerships and the outlook for the 2013 fiscal year. The results of these activities were: "Cost of Sales decreased by 37%, gross profit increased by 109%, administrative costs down 33% and payroll down 72%." One example of the result was: "Digital Clarity won a major deal with a US-based entertainment group." DC will grow with the company globally.
The Company is undervalued--that is a fact as it has audited revenues higher than the market cap, as absurd as that fact is. However, RTG's largest lender is strongly supportive of the Company's efforts/direction and is behind its management. As stated under Note 4-Loans Payable. "The balance remaining amounted to $269,000 which is due on demand and bears no interest."
As summarized in the Financial Overview: "After a very difficult year, fraught with challenges and hurdles, we see 2013 as poised for growth on multiple fronts. With capital infusion, which will allow us to bring in new clients, grow existing successful clients and service them accordingly, coupled with an offer of a deferred tax asset to attract partners with significant revenue and expansion patterns, we have a model in place which will be sustainable."
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