Impact Fusion International Inc (IFUS)

[Slojab]

10-K filed last week.

http://www.pinksheets.com/otciq/ajax/showFinancialReportById.pdf?id=28265

Cash.....$1,675!


More highlights....

RESULTS OF OPERATIONS
Fiscal Year Ended September 30, 2009, Compared to Fiscal Year Ended September 30, 2008
We have generated limited revenues from sales of our first product. For the years ended September 30, 2009
and 2008 we generated $24,936 and $11,839. Our future revenue plan is uncertain and is dependent on our
ability to effectively introduce our products to our target consumers, generate sales, and obtain contract
manufacturing opportunities. The margin for nutraceutical supplement products depends on the distribution
market. In warehouse clubs, the wholesale margin is less than 30%. In Mass retail markets which include
grocery and convenience stores, the margins are 40%+. In MLM, (Multi-level Marketing), and Direct to
Consumer markets, the margins are 50%+. Margins for Contract Manufacturing are 20-30%.
General and administrative expenses increased to $11,295,617 and $256,417 for the years ended September 30,
2009 and 2008 respectively. The increase in general and administrative expenses relates to employing full
time employees and officers during rather than consultants, including costs associated with our filings with the
Pinksheets. Further we issued additional stock to prior management for the waiver and release of all
outstanding employment agreement and contracts with the company.
Selling and marketing expenses increased to $795,245 and $5,344 for the years ended September 30, 2009 and
2008 respectively. We have incurred heavy marketing expenses during the initial launch of our products,
creation of our website, and general marketing of the company.
Depreciation and amortization increased $13,916 and $10,437 for years ended September 30, 2009 and 2008
respectively.
We incurred losses of approximately $12,134,395 and $293,027 for year ended September 30, 2009 and 2008
respectively. During 2009 we made major investments in our products, brands and distribution, which will not
be recurring expenses going forward.
Liquidity and Capital Resources
We have maintained a minimum of one months of working capital since September of 2008. This reserve was
intended to allow for an adequate amount of time to secure additional funds from investors as needed. To date,
management has not successfully secured capital as needed.
Our cash used in operating activities is $176,973 and $156,966 the years ended September 30, 2009 and 2008
respectively. The decrease is mainly attributable to the decrease in operating expenses.
25
Cash used by investing activities was $20,000 and $0 the years ended September 30, 2009 and 2008,
respectively. The increase in asset was the increase in the purchase of patents for the Company.
Cash provided by financing activities was $128,179 and $130,071 for the years ended September 30, 2009 and
2008, respectively. The decrease is due to a decrease in raising funds from our shareholders to develop our
products for sale in the market. We sold common shares of 1,717,242 and received proceeds of $50,000 as
compared to $40,000 proceeds from the sale of our common stock in 2008. We received proceeds from an
affiliate of $13,000, and $90,071 for the nine months ended June 30, 2009 and 2008, respectively.