| Followers | 918 |
| Posts | 48159 |
| Boards Moderated | 0 |
| Alias Born | 07/22/2008 |
Saturday, May 14, 2011 1:07:42 PM
Yeah, pretty sucky, Hans. There may be "something" there, though.
They have a deposit which hadn't occurred in any previous accounting/filing so it must have occurred in the last quarter/this filing.
Entries in the Balance Sheet and Statement of Cash Flows >>> "Customer deposits $3,189"
Does anyone know the entire price for the system? Thought I saw it somewhere but don't recall. Will look for it later if no one else has it. That entry, "Customer Deposit" is self explanatory and must be what they were referring to as "the sale" in their press release. Pretty sucky that they didn't explain this, with more detail, in the 10-Q narrative under Management’s Discussion and Analysis or Plan of Operations.
Some, possibly, "enlightening tid bits" from the 10-Q:
Common Stock
On May 26, 2010, the Company issued 10,000,000 shares of its common stock to a Director for services valued at $25,000 based on the current market price of the stock minus a discount for the restricted trading. (These shares were issued @ $.0025 per share)
On February 25, 2011, the Company issued 12,000,000 shares of its common stock to Directors for repayment of loans of $49,000 based on the current market price of the stock minus a discount for the restricted trading. (These shares were issued @ $.0041 per share)
On March 15, 2011, the Company issued 8,848,675 shares of its common stock upon conversion of convertible debt of $21,500. (These shares were issued @ $.0024 per share)
Essentially, 30,848,675 shares were issued for $95,500 = $.0031 per share. That's higher than what the price per share is currently, which is $.0019. You have to believe that the investors/directors will require a profit on their services/investments & loans. They will want more than $.0031. They may want 100% ROI (return on investment) which would be ~$.0062 and/or higher, in my opinion.
Meanwhile, the OS, as of March 31, 2011, was 100,848,675. That gives the company a Market Capitalization of $191,612. You've got to figure that that current valuation is WAY TOO LOW. IF they can SELL the product, IF it's a TRULY good-to-excellent product...then the company is WAY UNDERVALUED/OVERSOLD at this time. If the company could be valued @ $1,000,000 then the price per share, with the current OS level, would be right around a penny ($1M market cap/valuation divided by 100.8M OS = pps of $.0099). Valued @ $2,000,000 = pps of 2 pennies. 1-2 pennies are 5 and 10 baggers, respectively, from today's current level ($.0019).
Another positive item is that Total Liabilities are "only" $78,744.
Revenue Recognition
The Company is in the development stage and has yet to realize revenues from operations. Once the Company has commenced operations, it will recognize revenues when delivery of goods or completion of services has occurred provided there is persuasive evidence of an agreement, acceptance has been approved by its customers, the fee is fixed or determinable based on the completion of stated terms and conditions, and collection of any related receivable is probable.
Recent Accounting Pronouncements
In April 2010, the FASB issued ASU No. 2010-17, Revenue Recognition—Milestone Method (ASU 2010-017). ASU 2010-017 provides guidance in applying the milestone method of revenue recognition to research or development arrangements. This guidance concludes that the milestone method is a valid application of the proportional performance model when applied to research or development arrangements. Accordingly, an entity can make an accounting policy election to recognize a payment that is contingent upon the achievement of a substantive milestone in its entirety in the period in which the milestone is achieved. The guidance is effective for fiscal years, and interim periods within those years, beginning on or after June 15, 2010. The adoption of this accounting standard had no impact on the Company's financial position or results of operations.
Plan of Operation
We were incorporated in Delaware on September 25, 2007 and we are a development stage company. We intend to engage in the manufacturing and distribution of the Technology. We have not generated any revenues to date and our operations have been limited to organizational, start-up, and capital formation activities.
We have engaged a US manufacturer to develop a fully operational prototype of the Technology and the prototype is working as a pilot in NY. The Company is currently in negotiations with a US coin operating developer and manufacturer for the manufacturing and distribution of the Company’s product.
General Working Capital
We have raised as of today $200,000 in gross proceeds pursuant to the effective Registration Statement on Form S-1, filed with the Securities and Exchange Commission on August 12, 2008 (file no. 333-152952). We do not have any current intentions, negotiations, or arrangements to merge or sell the Company.
On July 7, 2010 the Company signed a $30,000 convertible promissory note with a third party. The note bears interest at 8% per annum and is due on April 8, 2011. The note has conversion rights that allow the holder of the note at any time to convert all or any part of the remaining principal balance into the Company’s common stock at a price equal to 55% of the average of the lowest three trading prices for the Common Stock during the most recent ten day period.
On September 20, 2010 the Company signed a $27,000 convertible promissory note with a third party. The note bears interest at 8% per annum and is due on June 23, 2011. The note has conversion rights that allow the holder of the note at any time to convert all or any part of the remaining principal balance into the Company’s common stock at a price equal to 55% of the average of the lowest three trading prices for the Common Stock during the most recent ten day period.
On January 6, 2011, the Company signed a $35,000 convertible promissory note with a third party. The note bears interest at 8% per annum and is due on October 10, 2011. The note has conversion rights that allow the holder of the note at any time to convert all or any part of the remaining principal balance into the Company’s common stock at a price equal to 55% of the average of the lowest three trading prices for the Common Stock during the most recent ten day period.
We are not aware of any material trend, event or capital commitment, which would potentially adversely affect liquidity. In the event such a trend develops, we believe that we will have sufficient funds available to satisfy working capital needs through lines of credit and the funds expected from equity sales.
Liquidity and Capital Resources
Our balance sheet as March 31 2011 reflects cash in the amount of $9,372. Cash and cash equivalents from inception to date have been sufficient to provide the operating capital necessary to operate to date. The operating expenses and net loss for the three months ended March 31 2011 and March 31 2010 amounted to $44,330, $70,020 and $ 34,524 and $34,231, respectively.
We do not have sufficient resources to effectuate our business plan in full. We expect to incur a minimum of $100,000 in expenses during the next twelve months of operations. Accordingly, we will have to raise the funds to pay for these expenses. We might do so through a private offering or thru additional debt or equity financing. There can be no assurance that additional capital will be available to us. We currently have no agreements, arrangements or understandings with any person to obtain funds through bank loans, lines of credit or any other sources.
Going Concern Consideration
Our auditors have issued an opinion on our annual financial statements which includes a statement describing our going concern status. This means that there is substantial doubt that we can continue as an on-going business for the next twelve months unless we obtain additional capital to pay our bills and meet our other financial obligations. This is because we have not generated any revenues and no revenues are anticipated until we begin marketing the product. Accordingly, we must raise capital from sources other than the actual sale of the product. We must raise capital to implement our project and stay in business.
Link to 10-Q:
http://www.sec.gov/Archives/edgar/data/1431936/000114420411028740/v221944_10q.htm
Good day.
They have a deposit which hadn't occurred in any previous accounting/filing so it must have occurred in the last quarter/this filing.
Entries in the Balance Sheet and Statement of Cash Flows >>> "Customer deposits $3,189"
Does anyone know the entire price for the system? Thought I saw it somewhere but don't recall. Will look for it later if no one else has it. That entry, "Customer Deposit" is self explanatory and must be what they were referring to as "the sale" in their press release. Pretty sucky that they didn't explain this, with more detail, in the 10-Q narrative under Management’s Discussion and Analysis or Plan of Operations.
Some, possibly, "enlightening tid bits" from the 10-Q:
Common Stock
On May 26, 2010, the Company issued 10,000,000 shares of its common stock to a Director for services valued at $25,000 based on the current market price of the stock minus a discount for the restricted trading. (These shares were issued @ $.0025 per share)
On February 25, 2011, the Company issued 12,000,000 shares of its common stock to Directors for repayment of loans of $49,000 based on the current market price of the stock minus a discount for the restricted trading. (These shares were issued @ $.0041 per share)
On March 15, 2011, the Company issued 8,848,675 shares of its common stock upon conversion of convertible debt of $21,500. (These shares were issued @ $.0024 per share)
Essentially, 30,848,675 shares were issued for $95,500 = $.0031 per share. That's higher than what the price per share is currently, which is $.0019. You have to believe that the investors/directors will require a profit on their services/investments & loans. They will want more than $.0031. They may want 100% ROI (return on investment) which would be ~$.0062 and/or higher, in my opinion.
Meanwhile, the OS, as of March 31, 2011, was 100,848,675. That gives the company a Market Capitalization of $191,612. You've got to figure that that current valuation is WAY TOO LOW. IF they can SELL the product, IF it's a TRULY good-to-excellent product...then the company is WAY UNDERVALUED/OVERSOLD at this time. If the company could be valued @ $1,000,000 then the price per share, with the current OS level, would be right around a penny ($1M market cap/valuation divided by 100.8M OS = pps of $.0099). Valued @ $2,000,000 = pps of 2 pennies. 1-2 pennies are 5 and 10 baggers, respectively, from today's current level ($.0019).
Another positive item is that Total Liabilities are "only" $78,744.
Revenue Recognition
The Company is in the development stage and has yet to realize revenues from operations. Once the Company has commenced operations, it will recognize revenues when delivery of goods or completion of services has occurred provided there is persuasive evidence of an agreement, acceptance has been approved by its customers, the fee is fixed or determinable based on the completion of stated terms and conditions, and collection of any related receivable is probable.
Recent Accounting Pronouncements
In April 2010, the FASB issued ASU No. 2010-17, Revenue Recognition—Milestone Method (ASU 2010-017). ASU 2010-017 provides guidance in applying the milestone method of revenue recognition to research or development arrangements. This guidance concludes that the milestone method is a valid application of the proportional performance model when applied to research or development arrangements. Accordingly, an entity can make an accounting policy election to recognize a payment that is contingent upon the achievement of a substantive milestone in its entirety in the period in which the milestone is achieved. The guidance is effective for fiscal years, and interim periods within those years, beginning on or after June 15, 2010. The adoption of this accounting standard had no impact on the Company's financial position or results of operations.
Plan of Operation
We were incorporated in Delaware on September 25, 2007 and we are a development stage company. We intend to engage in the manufacturing and distribution of the Technology. We have not generated any revenues to date and our operations have been limited to organizational, start-up, and capital formation activities.
We have engaged a US manufacturer to develop a fully operational prototype of the Technology and the prototype is working as a pilot in NY. The Company is currently in negotiations with a US coin operating developer and manufacturer for the manufacturing and distribution of the Company’s product.
General Working Capital
We have raised as of today $200,000 in gross proceeds pursuant to the effective Registration Statement on Form S-1, filed with the Securities and Exchange Commission on August 12, 2008 (file no. 333-152952). We do not have any current intentions, negotiations, or arrangements to merge or sell the Company.
On July 7, 2010 the Company signed a $30,000 convertible promissory note with a third party. The note bears interest at 8% per annum and is due on April 8, 2011. The note has conversion rights that allow the holder of the note at any time to convert all or any part of the remaining principal balance into the Company’s common stock at a price equal to 55% of the average of the lowest three trading prices for the Common Stock during the most recent ten day period.
On September 20, 2010 the Company signed a $27,000 convertible promissory note with a third party. The note bears interest at 8% per annum and is due on June 23, 2011. The note has conversion rights that allow the holder of the note at any time to convert all or any part of the remaining principal balance into the Company’s common stock at a price equal to 55% of the average of the lowest three trading prices for the Common Stock during the most recent ten day period.
On January 6, 2011, the Company signed a $35,000 convertible promissory note with a third party. The note bears interest at 8% per annum and is due on October 10, 2011. The note has conversion rights that allow the holder of the note at any time to convert all or any part of the remaining principal balance into the Company’s common stock at a price equal to 55% of the average of the lowest three trading prices for the Common Stock during the most recent ten day period.
We are not aware of any material trend, event or capital commitment, which would potentially adversely affect liquidity. In the event such a trend develops, we believe that we will have sufficient funds available to satisfy working capital needs through lines of credit and the funds expected from equity sales.
Liquidity and Capital Resources
Our balance sheet as March 31 2011 reflects cash in the amount of $9,372. Cash and cash equivalents from inception to date have been sufficient to provide the operating capital necessary to operate to date. The operating expenses and net loss for the three months ended March 31 2011 and March 31 2010 amounted to $44,330, $70,020 and $ 34,524 and $34,231, respectively.
We do not have sufficient resources to effectuate our business plan in full. We expect to incur a minimum of $100,000 in expenses during the next twelve months of operations. Accordingly, we will have to raise the funds to pay for these expenses. We might do so through a private offering or thru additional debt or equity financing. There can be no assurance that additional capital will be available to us. We currently have no agreements, arrangements or understandings with any person to obtain funds through bank loans, lines of credit or any other sources.
Going Concern Consideration
Our auditors have issued an opinion on our annual financial statements which includes a statement describing our going concern status. This means that there is substantial doubt that we can continue as an on-going business for the next twelve months unless we obtain additional capital to pay our bills and meet our other financial obligations. This is because we have not generated any revenues and no revenues are anticipated until we begin marketing the product. Accordingly, we must raise capital from sources other than the actual sale of the product. We must raise capital to implement our project and stay in business.
Link to 10-Q:
http://www.sec.gov/Archives/edgar/data/1431936/000114420411028740/v221944_10q.htm
Good day.
Join the InvestorsHub Community
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
