Form 10-K for ML CAPITAL GROUP, INC.
biz.yahoo.com/e/140331/mlcg10-k.html
31-Mar-2014
Annual Report
Item 7: Management's Discussion and Analysis of Financial Condition and Results of Operation
Results of Operations
Year Ended December 31, 2013 Compared to Year Ended December 31, 2012
Revenue
Our revenues for the periods ended December 31, 2013 and 2012 were $2,250 and $800, respectively. The revenue was related to the providing of consulting services to an affiliate party.
Operating Expenses
General and administrative expense for 2013 decreased 50% from $1,533,069 in
2012 to $770,601 in 2013. The decrease in general and administrative expense was
attributable to lower stock based compensation in 2013 over 2012.The major
categories included:
2013 2012
Compensation $ 222,500 $ 1,050,000
Professional fees 501,076 470,070
Other 47,025 12,999
$ 770,601 $ 1,533,069
.
Other Income (Expense)
Other expenses increased from $5,225 in 2012 to $62,045 in 2013. The increase was attributed to the issuance of convertible debt in 2013 resulting in a derivative liabilities in 2013 compared to none in 2012 and interest expense of $9,960 in 2013 compared to $5,225 in 2012.
Financial Condition
Liquidity and Capital Resources
Our principal requirements for capital are to fund our day-to-day operations and to satisfy our contractual obligations, primarily for the repayment of debt.
As we operated at a loss, generating negative cash flow from operations, during 2013, we believe that we will be required to either improve profitability and operating cash flow or to borrow additional funds or otherwise secure additional financing, or both, to support our operations during 2013. Except as described below regarding our equity line of credit, we do not presently have any commitments to provide financing, if needed, to support our operations.
Cash Flows and Working Capital
We had no cash and a working capital deficit of $82,828 at December 31, 2013 as compared to a cash balance of $44 and a working capital deficit of $24,197 at December 31, 2013. The major factors in the decrease in working capital is attributed to a derivative liability of $56,351 in 2013 verse none in 2012 and increased notes payable net of discount of $12,548 in 2013 compared to $5,000 in 2012.
Operations used $20,595 of cash during 2012 as compared to $68,528 used during 2013. The use of operating cash flows during 2013 was principally attributable to the Company's net loss, offset by non-cash charges for amortization of debt discount, stock based compensation or derivatives.
Financing activities provided cash flows of $20,637 during 2012 as compared to $68,484 provided during 2013. Cash flows provided by financing activities during the 2013 period related to issuance of convertible debentures $28,667 for cash and the sale of stock for $45,000.
Debt
At December 31, 2013, we had $32,000 of indebtedness outstanding, consisting of convertible debentures with an outstanding balance of $32,000, with $12,548, net of discount.
Off-Balance Sheet Arrangements
The Company does not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on the Company's financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to investors.
Contractual Obligations
As a "smaller reporting company" as defined by Item 10 of Regulation S-K, the Company is not required to provide this information.
