The devil is in the details...from the recent 10Q;
In December of 2004, ZKid Network Co. announced the authorization to buy back up to $1,000,000 Dollars of the company's stock as it sees fit under market conditions. Revenue for this buy back will come from the expected revenue increase generated through our Sharing Way LLC, agreement. Without these revenues we will be unable to repurchase any shares.
In November of 2004, the board of directors authorized a reduction of common stock capital from 500,000,000 shares to 200,000,000 shares. We intend to implement this change in capital in the near future. We believe this action will help limit future dilution of the company's stock and shareholder value. Our short-term cash requirements are approximately $12,000 per month. Our long- term cash requirements will include our continuing fixed operational expenses and marketing expenses associated with responding to subscriber inquiries. The marketing costs will be in direct proportion to the subscriber response generated from co-marketing. The money needed to finance our operational overhead expenses will come from new investors. We may offer common stock on a private stock offering basis.
We are in need of additional cash. In December of 2004, ZKid Network Co. received a commitment for a $250,000 Line Of Credit from Community Bank of Oak Park and that loan was completed and funded at the end of January of 2005. The funds are earmarked to be used for the day to day operating expenses and to repay back Donald Weisberg and Jon Darmstadter monies which were loaned to the company from June 2004-January 2005. These loans were used by the company to pay officer salary to Mr. Mitchell Lederer in the amount of $54,000 and to Sheetal Maharjan as an independent contractor who specializes in our internal internet systems. Money was also loaned for rent, accounting fees, fees for news wire for press releases, internet housing and phone service and other day to day operating expenses.
We may seek additional capital in order finance our proposed operations. We have not identified any specific future financing sources. Our efforts to finance Zkid and its operations may result in the issuance of equity and debt instruments. This and other future financing activity may result in the dilution of shareholder equity. We expect to incur financial losses for the foreseeable future.
FORWARD-LOOKING STATEMENTS:
We have included forward-looking statements in this report. For this purpose, any statements contained in this report that are not statements of historical fact may be deemed to be forward looking statements. Without limiting the foregoing, words such as "may", "will", "expect", "believe", "anticipate", "estimate", "plan" or "continue" or the negative or other variations thereof or comparable terminology are intended to identify forward-looking statements. These statements by their nature involve substantial risks and uncertainties, and actual results may differ materially depending on a variety of factors. Factors that might cause forward- looking statements to differ materially from actual results include, among other things, overall economic and business conditions, demand for the Company's products, competitive factors in the industries in which we compete or intend to compete and other uncertainties of plan of business operations.
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