Form 10-K for ALL STATE PROPERTIES HOLDINGS, INC.
14-Oct-2010
Annual Report
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF THE FINANCIAL CONDITION AND RESULTS OF OPERATIONS ALL STATE PROPERTIES HOLDINGS, INC.
Forward Looking Statements
Some of the information in this section contains forward-looking statements that involve substantial risks and uncertainties. You can identify these statements by forward-looking words such as "may," "will," "expect," "anticipate," "believe," "estimate" and "continue," or similar words. You should read statements that contain these words carefully because they:
- discuss our future expectations;
- contain projections of our future results of operations or of our financial condition; and
- state other "forward-looking" information.
We believe it is important to communicate our expectations. However, there may be events in the future that we are not able to accurately predict or over which we have no control. Our actual results and the timing of certain events could differ materially from those anticipated in these forward-looking statements as a result of certain factors.
Critical Accounting Policies
The preparation of financial statements and related disclosures in conformity with accounting principles generally accepted in the United States of America requires management to make judgments, assumptions and estimates that affect the amounts reported in our consolidated financial statements and accompanying notes. We base our estimates and judgments on historical experience and on various other assumptions that we believe are reasonable under the circumstances. However, future events are subject to change, and the best estimates and judgments routinely require adjustment. The amounts of assets and liabilities reported in our consolidated balance sheet, and the amounts of revenues and expenses reported for each of our fiscal periods, are affected by estimates and assumptions which are used for, but not limited to, the accounting for allowance for doubtful accounts, goodwill and intangible asset impairments, restructurings, inventory and income taxes. Actual results could differ from these estimates. The following critical accounting policies are significantly affected by judgments, assumptions and estimates used in the preparation of our consolidated financial statements.
The following discussion and analysis of our financial condition, results of operations, liquidity and capital resources should be read in conjunction with our financial statements and notes thereto.
YEAR ENDED JUNE 30, 2010 COMPARED TO YEAR ENDED JUNE 30, 2009
REVENUES
Our total revenue decreased by $0, or approximately 0%, from $0 in the year ended June 30, 2009 to $0 in the year ended June 30, 2010. No increase or decrease occurred during the past year. However, it is believed that the change in direction of the Company due to the acquisition and change in management of All State Properties Holdings, Inc. will result in the beginning of a revenue stream. All State Properties Holdings, Inc. has had minimal business operations, consisting primarily of asset acquisitions, since the beginning of this fiscal year.
OPERATION AND ADMINISTATIVE EXPENSES
Operating expenses increased by $ 1,621,874, or approximately 10,355%, from $15,662 in the year ended June 30, 2009 to $1,637,536 in the year ended June 30, 2010. Operating expenses primarily consist of Officer's Salaries paid to officers of the Company, Professional fees paid to accountants and attorneys throughout the year for performing various tasks, Investor Relations Expenses paid to firms for performing Investor Relations services, and Other General & Administrative Expenses and Office expenses. Officer's Salaries increased by $543,213, or approximately 543,213% from $0 in the year ended June 30, 2009 to $543,213 in the year ended June 30, 2010. Professional fees increased by $922,634 or approximately 6,107%, from $15,108 in the year ended June 30, 2009 to $937,742 in the year ended June 30, 2010. Investor Relations Expenses increased by $90,273 or approximately 90,273%, from $0 in the year ended June 30, 2009 to $90,273 in the year ended June 30, 2010. Other General & Administrative Expenses increased by $65,416 or approximately 26,271%, from $249 in the year ended June 30, 2009 to $65,665 in the year ended June 30, 2010.
Office expenses increased by $338 or approximately 111%, from $305 in the year ended June 30, 2009 to $643 in the year ended June 30, 2010. The bulk of the increase in expense was due to increased Officer's Salaries and Professional Fees when comparing the same period in 2009.
LIQUIDITY AND CAPITAL RESOURCES
Our primary liquidity and capital resource needs are to finance the costs of our operations. As of June 30, 2010, we had $622 cash on hand, compared to $0 as of June 30, 2009.
We believe that we will continue to need investing and financing activities to fund operations.
Net cash provided from operating activities was $622 during the twelve-month period ended June 30, 2010, mainly representative of the amount of indebtedness due for a related party during 2010. This compares to net cash used in operating activities of $100 for the twelve-month period ended June 30, 2009.
Net cash provided by investing activities was $0 during twelve-month period ended June 30, 2010. This compares to net cash provided by investing activities of $0 for the twelve-month period ended June 30, 2009.
Net cash provided by financial activities was $0 during twelve-month period ended June 30, 2010. This compares to net cash provided from financing activities of $0 for the twelve-month period ended June 30, 2009.
Our expenses to date are largely due to officer's salaries and professional fees associated with accountant and attorney costs, investor relations expenses and general & administrative expenses.
We believe that our results of operations and financing activities will provide us with the necessary funds to satisfy our liquidity needs for the next 12 months. To the extent they are not, however, our principal stockholder and investors have agreed to fund our operations for the next twelve-month period and beyond.
AI
