VIGSF excerpt from the 10Q dated 7-19-04 Looking real good here!
Results of operations
The Company’s revenues and operating results have varied substantially from year to year. The company recognizes revenue from sales of software upon evidence of an agreement (written contract between both parties), the delivery of the software and the determination that collection of a fix or determinable fee is probable.
Services are always included in the sale of software and represent installation, consulting, training and specific modifications to the software asked by the customer. Evidence of fair value for each element is accounted for using the percentage of completion method. When the sales of software require significant consultation and customization or modification of the software, both software and services are recognized in accordance with the provisions of SOP 81-1 using the percentage of completion method based on cost inputs.
Maintenance service revenue is allocated over the term, generally one year but up to three years. Revenues from training, consultation and technical support are recognized as the services are performed.
REVENUES
Revenues increased from $1,052,601 for the year ended March 31, 2003 to $1,654,953 for the year ended March 31, 2004, an increase of $602,352, primarily as a result of an increase in software sales. Management is in the opinion that revenues generated for the next fiscal period will continue to increase.
COSTS OF SALES
Costs of sales increased from $455,788 for the year ended March 31, 2003 to $701,852 for the year ended March 31, 2004, an increase of $246,064, primarily as a result the increase in the cost of sales associated with an increase in revenues.
TOTAL OPERATING EXPENSES
Total Operating Expenses increased from $1,129,349 for the year ended March 31, 2003 to $1,480,760 for the year ended March 31, 2004, an increase of $351,411, primarily as a result the increase in the cost of sales associated with an increase in revenues.
NET INCOME (LOSS)
Net loss for the year ended March 31, 2003 was ($76,748) as compared to a net income for the year ended March 31, 2004 of $174,193, primarily as a result of an increase in software sales.
ASSETS
CASH
Cash increased from 17,382 at March 31, 2003 to $116,991 at March 31, 2004, an increase of $99,609, primarily as a result of the increase in revenues.
ACCOUNTS RECEIVABLE
Accounts receivable increased from $132,565 at March 31, 2003 to $333,502 at March 31, 2004, an increase of $200,937, primarily as a result of the increase in sales.
TOTAL CURRENT ASSETS
Total current assets increased from $172,238 at March 31, 2003 to $450,493 at March 31, 2004, an increase of $278,255, primarily as a result of the increase in sales and elimination of the current portion of a note receivable from 2003.
TOTAL CURRENT LIABILITIES
Total current liabilities increased from $513,593 at March 31, 2003 to $782,252 at March 31, 2004, an increase of $268,659, primarily as a result of $298,813 in accrued expenses.
The Company anticipates that its cash requirements will continue to increase as it continues to expend substantial resources to build its infrastructure, develop its business plan and establish its sales and marketing network operations, customer support and administrative organizations. The Company currently anticipates that its available cash resources and cash generated from operations will be sufficient to meet its presently anticipated working capital and capital expenditure requirements for the next twelve months. If the Company is unable to maintain profitability, or seeks further expansion, additional funding will become necessary. There can be no assurances that the Company can realize sufficient revenues to satisfy its business plan and further, there can be no assurance that alternative sources of financing can be procured on behalf of the Company.
AI
