Notable excerpts from 10-K:
1)"The Company believes its current available cash, along with anticipated revenues, may be insufficient to meet its cash needs for the near future. There can be no assurance that financing will be available in amounts or terms acceptable to the Company, if at all."
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Interpretation:
even anticipated revenues from Africa may not be enough to keep company going
2)"There is no income tax benefit for the losses for the years ended December 31, 2015 and 2014, since management has determined that the realization of the net deferred tax asset is not more likely than not to be realized and has created a valuation allowance for the entire amount of such benefit."
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Interpretation: MYEC will probably not be able to use the tax losses of 2015 and 2014 against any profits. So the tax losses are worthless and will probably not save MYEC any tax expense in the future.
3)Financial Condition
As of December 31, 2015, we had cash and cash equivalents totaling $5,425, a working capital deficit of $2,945,710 and stockholders’ equity of $30,653. We have a line of credit facility and have relied on short-term borrowings to provide cash to finance our operations. We believe that we will need to raise additional capital in 2016 to sustain our operations. The future of the Company as an operating business will depend on its ability to obtain sufficient capital contributions and/or financing as may be required to sustain its operations.
Management’s plans to address these issues includes a continued exercise of tight cost controls to conserve cash and obtaining additional debt and/or equity financing.
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Interpretation: more debt and convertible notes and shares will likely need to be issued
4)Employees and Contractors
As of March 31, 2016, we employed six (6) full-time employees. We also use outside contractors on an as needed basis.
5)Management has recorded an allowance for doubtful accounts of $202,200 and $0 as of December 31, 2015 and 2014, respectively.
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Interpretation: $202,200 worth of revenues is deemed unlikely to be collected. Almost 30% of revenues generated for the year are deemed not collectible!
6)We had revenue from continuing operations in December 31, 2015 of $730,777, compared to $952,156 in 2014. Cost of revenue from continuing operations in December 31, 2015 was $130,120, compared to $99,976 in 2014, for an increase of $30,144 or 130%. Selling, general and administrative expenses (“S,G &A”) was $4,497,707 in 2015 compared to $1,458,374 in 2014, an increase of $3,039,333 or 208%.
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Interpretation: revenues are down, more than 25% of it unlikely to be collected, expenses are through the roof!
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