FMNL...B) BUSINESS OVERVIEW
The Company operates in the hospitality and tourism business segment. Under this segment, the company operates a charter cruise vessels.
The Company owns a passenger carrying yacht the 120’ MV Spirit of 2010, an 18 foot tender, two jet skis, and ocean going kayaks. The equipment is for charter cruises to the Pacific Northwest, and Baja Mexico.
Excess funds on-hand, either from equity financing, borrowings, sales of assets or generated from operations, may from time-to-time be reinvested in marketable securities and/or life settlement contracts. Currently, the Company has paid $1,788,567 ($1,742,817 USD) to invest in life settlement contracts, which was funded by the recent Private Placements completed in July of 2007. During the third quarter of 2008 a $5 Million USD policy matured resulting in a portfolio face value of $25,930 thousand USD at a cost of $1,548,070 ($1,506,473 USD).
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Real risks exist in investing in life settlement contracts. These risks may have a material adverse effect on the Company's investment in the Life Settlement marketplace. (See Item 3 Risk factors, The Markets in Which the Company Competes is Highly Competitive. If the Company Cannot Successfully Compete, its Growth Rate May Stagnate or Revenues May Decline).
Travel Club
The Company’s historical business is providing travel services for the members of its travel clubs. Subsequent to year end the Company sold its travel club and supporting operations.
