Peru and Argentina Mysteries.....
From Todays' 10Q
The 10Q reports that the company is still wrestling with the Argentina and Peru Subsidaries. Elsewhere in the 10Q it states that the Board has decided to abandon Argentina altogether and that Digital Way is not yet cooperative in divulging revenues. Yet, below it is stated that Digital Way had only approx $12,000 in revenue in the past quarter.
This just does not make sense based on the Press Release of WLGS in November stating Digital Way is Cash Flow Positive.
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NOTE 4 - OPERATING RESULTS BY COMPANY AND CONSOLIDATED FOR THE QUARTER ENDED DECEMBER 31, 2000
During the fiscal year ended September 30, 2001, the Company had lost management control of its two subsidiaries, Infotel Argentina S.A. and Digital Way S.A. of Peru. Because of the
situation, the Company recognized an impairment of the Company's remaining investments in those two subsidiaries, in the amount of $5,555,254 at September 30, 2001. The Company has not been able to regain management control at December 31, 2001, and therefor, is unable to include the activities of the subsidiaries in the results for the three months ended December 31, 2001. However, the information was available for the three months ended December 31, 2000, and is included in the comparative information shown for that period. The financial activity for the entities is as follows:
For the Quarter Ended December 31, 2000 (Unaudited)
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World Wide Infotel Digital Way Total
Wireless(U.S) (Argentina) (Peru) Consolidated*
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Revenue $ - $ 303,343 $ 12,863 $ 316,591
Expenses 1,290,957 366,978 489,537 2,147,857
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Net Loss $(1,290,957) $ (63,635) $(476,674) $(1,831,266)
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Total Assets $ 8,617,736 $ 430,515 $2,227,807 $ 8,138,551
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*After elimination of intercompany transactions.
