GZFX/ Capital Funding Breakdown .......
SB-2 was completed on August 12th. It was funded through Goldengate Investors under an approved plan by the SEC. The company has began to recieve its 16.5 million in funding(before October 27, not sure of the date). 75% of all funding recieved will go to Inventory purchases and acquisitions, 20% will be allocated to advertising(mostly online), and 5% will be used for overhead and misc....
We just saw the first use of this money(75%) in the acquisition of Gamechoice games inventory which consisted of 2,750 copies. They also have several more targets for acquisitions, Companies with decreasing capital.
They have got the "first round of financing" which leades me to believe that this funding has been budgeted to be recieved annually for the next 3 years as they have stated that "Capital funding for the next 3 years has been approved". The reason I say annually is they also stated that "Captal funding to achieve objectives for the next 12 Months is in place".
This 25% funding for advertisments is also used partialy to "Make sure that they had the inventory as well as the capital, to maintain the relationship with Circuit City, Successfully" which they stated they have achieved this inventory/capital, and that they are prepared to handle "growth".
This 25% funding will be used to support 2 new partnerships (yet to be announced) which will promote GZFX much like Circuit City is doing. One of which currently has 25,000 users. These are not retail stores which leads me to believe that they are online. they have also stated that their advertising will be concentrated online which would seem to confirm that. The have also spoke of "Extensive Banner Campaigns" and "College Website Advertising"-CSTV, and they say it will leave 50-100 million impressions in the next year.
They have stated that they are "Capital Funded for the next 3 years". I think it is important to note that they also stated that they have approximately 10,000+ subs, and we expect them to become profitable around 25,000 subs. They stated that they would reach profitability likely in December or by the end of The 1st quarter. This was before the better than expected numbers at Circuit City. (10 stores added to the roll-out!)
3rd Quarter 10-QSB/- The number to keep in mind seems to be around 21,000 subscribers, to break even. Total operating expenses $3,040,749
Lets call it $4M per year. (Its possibly/probably larger due to CC advertising in 4th quarter)$4,000,000 / 12 months = $333,333.33/month -$333,333.33 / $16 (Avg Sub) = 20,833 subs needed per month.
Conclusion:
They are at or near their "Breakeven Point" and are about to become profitable with "Better than expected numbers" that are growing every day. They have "Capital Funding" in place for 3 years. They stated that because of these two things, "Our Goals are easily Attainable". CEO John Fleming "sincerly believes" that GZFX is "The most under valued company of all the Bulliton Board Stocks". He even refered to GZFX as becoming a "Growth Company".
All Info here can be found with very little DD using the Board Info Box at the GZFX board so please dont ask me to prove or back up anything because it is all there to read and hear. GLTY
JROD
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