Figured I would take a minute to copy and paste the sections of the Q1 that were particularly of interest to me as I read through it...
Below you will find a "cliff notes" of sorts - all information was taken directly from ARTI's Q1 report.
I cannot WAIT till next week!
Chris
TOTAL ASSETS:
1,086,502 (03/2009) vs 537,485 (12/2008)
Revenues:
$ 469,000 (2009) vs $ 12 (2008)
Gross Profit (Loss):
$ 325,946 (2009) vs (12,728) (2008)
Net Income (Loss):
$ 280,775 (2009) vs $ (745,876 ) (2008)
...the Art Channel Network™ (the “Art Channel Network”) which broadcasts art and other creative-related programming and is currently syndicated to 20,000,000 viewers in 218 independent TV market nation-wide, and which our management believes will eventually be broadcast to over 40,000,000 households via satellite and cable...
...the worldwide market for collectibles is worth $120 Billion annually...
...In February 2007, the Art Channel officially launched a 2-month test run that amassed over 350 members and experienced gross revenues of over $400,000. According to these numbers, on a per member basis, this translates into $571 per month or $6,857 a year in per member revenues to the Art Channel...
...Artfest has partnered with CSD Sports....
...Artfest recently entered into a distribution agreement with Celebrity Sports to gain access to sports memorabilia products...
...There are several companies which are experiencing phenomenal success in the art reproduction direct-sales industry. One of these companies which uses a direct-sales approach has enjoyed $136 million in sales in less than 21 months. Another company in 1996 sold 66.7% of its ownership for $930,000,000. These figures are even more impressive considering that our management believes that the artists whose works were sold by these companies are relatively unknown...
...Our motive is to build value and increase market penetration with vertically integrated companies and service providers. The strategic acquisitions or “Roll Ups,” is a part of Artfest’s global expansion plan that includes Media, Art, Memorabilia and Distribution companies that will compliment and enhance Artfest's sophisticated business model...
...Total annual sales in the Art Industry: $120 Billion annually...
...the worldwide market for collectibles is worth $120 Billion annually...
...The art dealer industry includes about 6,000 stores with combined annual revenue of $4 billion...
...The Company generated operating revenues of $469,000 for the three months ended March 31, 2009 and recorded a net profit of $280,775. Operating revenues for the quarter ended March 31, 2008 were $12 with an operating loss of $12,728...
...The company had a net profit of $280,775 for the three months ended March 31, 2009 compared to a net loss of $745,876 for the prior year three month period. The decrease in net loss is the result of decreased operating costs...
...Proposed Charity Sports Distributor Acquisition
In February 2009 the Company entered into a Letter of Intent to acquire Charity Sports Distributor, Inc. (d.b.a. CSD Sports Framing and Memorabilia) which was founded in 1996. CSD is a vertically integrated Texas based custom framing company which specializes in the design, production, and distribution of authentic framed autographed sports and entertainment collectibles and art pieces. CSD’s distribution avenues include B2B and B2C sales, charity fundraising auctions, professional and college sports team’s pro shops, e-stores, online auctions and a revolutionary in-game silent auction concept known as Home Game Auction. CSD’s thirteen (13) year experience in the professional and college sports marketplace has developed an extensive client list which consists of hundreds of private charities and over forty (40) professional and college teams, including the Dallas Cowboys, Washington Redskins, Oakland Raiders, Houston Rockets, Dallas Mavericks, Cleveland Cavaliers, Phoenix Suns, Arizona Diamondbacks, Dallas Stars, Ohio State, Texas, Texas A&M, Oklahoma, Alabama, Georgia, Auburn, Florida State and UCLA.
The Company expects to complete the acquisition during the Second Quarter of 2009 and be in a position to launch the distribution of CSD’s product line through Art Channel Galleries, the marketing arm and wholly owned subsidiary of Artfest International, Inc., during the Second Quarter 2009. The addition of CSD’s product line in the Second Quarter would compliment and expand the Company’s ongoing product promotions and special purchase packages that are directed towards introducing a select number of acclaimed artists to our members. Presently, the Company is reviewing several financing options in order to complete this synergistic acquisition as efficiently as possible in light of the Company having completed its required due diligence.
CSD recorded revenues in calendar year 2008 of $3.3 million. Upon closing, CSD will operate as a wholly owned subsidiary of Artfest International, Inc.
The Company believes that the acquisition of CSD will result in the immediate expansion and enhancement of our current product offerings and will lead to an expansion of the Company’s current audience. Furthermore the acquisition will enable the Company to vertically integrate framing and canvas stretching operations and enable the company to increase the overall profitability of our existing product lines.
“CSD’s innovative framing is widely regarded as the premier quality brand in the autographed memorabilia marketplace, and by joining teaming with Artfest International, CSD would posses one of the most expansive product portfolios in the autographed collectibles industry...
...During the quarter ending March 31, 2009 the Company has initiated discussions to convert approximately $700,000 of notes into common shares of the Company at an average price of $.10 per share...
