Form 10-Q for VITAL PRODUCTS, INC.
Italics and Highlights are my comments
At July 31, 2008, our sole business was to manufacture two products under the "On The Go" name: a padded training seat that helps toddlers with potty training, and a baby bath with a contoured shape to cradle babies 0-6 months old. As of July 31, 2008, these two products failed to produce enough revenue for us to cover our expenses. After evaluating the market for baby care products, we determined that the industry does not offer enough opportunity for a small company to create products that are affordable to develop, priced competitively for the consumer and that can be introduced into distribution channels without significant expense. As a result, we decided not to invest further funds developing our baby products line.
They paid over a million for this, they didn't even get the patent rights
But not to worry they used shares to pay for the whole kaboodle
In August 2008, we changed our business plan and began the process of developing a new line of business as a distributor of industrial packaging products. On September 17, 2008, we entered into a Letter of Intent to purchase Montreal-based Den Packaging Corporation. We believe that the addition of Den Packaging will undoubtedly strengthen our standing in the industrial packaging sector. We are currently in the process of renegotiating a final agreement to consummate the purchase of Den Packaging.
Gee, guess who owns Den Packaging, that's right Michael Levine
Consumate, you know how you consumate a marrage? It's gonna be pretty much the same. shares again
On October 7, 2008, we entered into a consulting agreement with DLW Partners of Toronto, an industrial packaging consulting firm specializing in market analysis, market and product strategies and the development of product line extensions. We believe that DLW will work closely with us to develop new products for existing markets and establish product line extensions to further our market share. Most importantly DLW has experience in the development of environmentally friendly products and we expect that DLW will further our initiative to develop environmentally acceptable products.
On October 21, 2008, we entered into a sales and marketing agreement with Eco Tech Development LLC of Nevada, a product research and development company specializing in eco-friendly industrial packaging applications, whereby we will market certain proprietary and patent-pending technologies that have recently been developed by Eco Tech, beginning with the marketing of a new bio-based foam packaging product.
On January 13, 2009, we formally announced that we had commenced production of Biofill(TM), our bio-based foam in place packaging product, and on January 26, 2009, we received our first purchase order. On January 30, 2009, we received a second purchase order for our Biofill(TM) product from a major North American manufacturer.
On February 19, 2009, we entered into an agreement to market a new paper packaging system. While we believe paper packaging has been a staple in the industrial packaging market for many years, our new system produces a craft paper product that simulates a moldable nest. We believe this product is priced competitively with other paper products and gives us the advantage of performance and range of use. Although our new line of business continues to develop, we believe that these purchase orders validate our product and reflect the industrial packaging industry's trend towards environmentally friendly product lines.
Man oh man all this business, they must have made a ton
We had revenues of $2,670 for the three months ended October 31, 2009, as compared to revenues of $0 for the three months ended October 31, 2008. The increase in revenues was primarily the result of our development of a new product line
If your revenues equal 0 can you really call them revenues?
As of October 31, 2009, we had total current assets of $29,065 and total current liabilities of $434,343, resulting in a working capital deficit of $405,278. At the end of the quarterly period ending October 31, 2009, we had cash of $321. Our cash flow from operating activities for the three months ended October 31, 2009 resulted in a deficit of $7,312. Our current cash balance and cash flow from operating activities will not be sufficient to fund our operations. Our cash flow from financing activities for the three months ended October 31, 2009 was $0. We believe we will need to raise capital of approximately $300,000 to $350,000 through either debt or equity instruments to fund our operations for the next 12 months. However, we may not be successful in raising the necessary capital to fund our operations. In addition to the amounts needed to fund our operations, we will need to generate an additional $500,000 to cover our current liabilities for the next 12 months.
Really, cash of $321 That sounds like a highschool kids made up password... three, two, one, GO
They need a projected $850,000 to run a business that (If you project out the current quarterly revenue ) could make $10,680
Where's that money gonna come from,oh yeah "debt or equity instruments" I wouldn't lend them money, We all know how easy it is to borrow these days so looks like the options are limited
Let's see $850,000 is how many shares, if we give them the benefit of the doubt and say .02 ( and it didn't make it there)
That's 42,500,000 shares. I wonder if selling that many shares would depress the price?
I'm just thinking out loud, but these are numbers from their filing.
