Nugget Resources Inc. [NEX: NUG.H] has filed its audited annual financial statements with SEDAR for fiscal year 2007, ended June 30th. The financials [PDF file] got an unqualified opinion from the auditors.
There was no cash on Nugget's balance sheet for either fiscal year '07 or FY '06. Current assets increased from $1,338 in FY '06 to $3,395, but current liabilities also increased in the same time period, from $103,321 to $161,809. As a result, Nugget's working capital deficit increased from $101,983 to $158,414. Book value decreased from -0.676 cents/share to -1.05 cents/share.
Expenses went from $10,350 to $56,431, with all three expense categories going up. Transfer agent and filing fees went from $5,350 to $8,914; professional fees went from $5,000 to $16,686; and, general and administrative fees went from nil to $30,831 from FY '06 to FY '07. Since there were no other items, losses for each fiscal year equaled the expenses. In per-share terms, the FY '06 loss was 0.0686 cents and the FY '07 loss was 0.374 cents. The $21,223 used in operating activities was made up for by the same amount in advances from related parties, listed on the statement of cash flow as a financing transaction. As note 4 explains, there were two related-party debts of significance, as well as two others. The former two were: "At June 30, 2007 $47,314 (2006 - $27,676) was owed to Drillsearch Energy (Canada) Inc... for expenses paid by Drillsearch on behalf of the Company. At June 30, 2007 $31,800 (2006 - $nil) was owed to Modaven Capital Corporation... - a company controlled by a director - for consulting fees." The latter debt, as note 5 explains, is pursuant to a 2-year management contract made by Nugget with Modaven, for consulting services in exchange for $2,500/month.
The accompanying M D & A [PDF file] starts off by noting that Nugget has no assets of significance, which includes no mining properties or claims, and has no revenues. The rise in expenses is explained as necessiated by the reactivation of the company. (Nugget recently had two cease-trade orders against it revoked, as of October 18th for both of them. There are no more outstanding.) NUG.H still remains suspended by the exchange.
Showing posts with label financials. Show all posts
Showing posts with label financials. Show all posts
Saturday, November 3, 2007
Friday, November 2, 2007
Military International Ltd. Files Audited Annual Report With SEDAR
Military International Ltd. [NEX: MI.H] has filed its audited annual financial statements with SEDAR for fiscal year 2007, ended June 30th. The financials [PDF file] got an unqualified opinion from the auditors.
There was no cash on the balance sheet for either fiscal year '07 or FY '06. Current assets went from nil in FY '06 to $775 in FY '07. Current liabilities more than doubled, from $144,152 to $324,703; consequently, the working capital deficit went from $144,152 to $323,928. Book value shrunk from -2.16 cents/share to -4.87 cents/share. The $50,835 used in operating activities was covered in full by an increase in the amount due to directors, put in the cash flow statement as a financing activity - the only one. Expenses ballooned from $5,092 in FY '06 to $179,776 in FY '07, pushing the loss per share up from 0.0762 cents to 2.69 cents. Military International has $1,801,664 of tax-loss carry-forwards, $757,422 of which expire in 2008. Note 4 explains that the advances from directors are accrued as loans payable; they have no fixed term of repayment and bear no interest. The $50,835 advance was net of $55,835, shrunk by a $5,000 payment from the company to its directors. The accompanying M D & A [PDF file] explains that the increase in expenses are due to re-activation and an attempt to get listed on the Tier 2 of the Venture Exchange. It also explains that a cease-trade order has been issued against it for failure to file financial statements, which has not been rescinded as of yet even though the financials are up to date as of now. MI.H remains suspended.
There was no cash on the balance sheet for either fiscal year '07 or FY '06. Current assets went from nil in FY '06 to $775 in FY '07. Current liabilities more than doubled, from $144,152 to $324,703; consequently, the working capital deficit went from $144,152 to $323,928. Book value shrunk from -2.16 cents/share to -4.87 cents/share. The $50,835 used in operating activities was covered in full by an increase in the amount due to directors, put in the cash flow statement as a financing activity - the only one. Expenses ballooned from $5,092 in FY '06 to $179,776 in FY '07, pushing the loss per share up from 0.0762 cents to 2.69 cents. Military International has $1,801,664 of tax-loss carry-forwards, $757,422 of which expire in 2008. Note 4 explains that the advances from directors are accrued as loans payable; they have no fixed term of repayment and bear no interest. The $50,835 advance was net of $55,835, shrunk by a $5,000 payment from the company to its directors. The accompanying M D & A [PDF file] explains that the increase in expenses are due to re-activation and an attempt to get listed on the Tier 2 of the Venture Exchange. It also explains that a cease-trade order has been issued against it for failure to file financial statements, which has not been rescinded as of yet even though the financials are up to date as of now. MI.H remains suspended.
International Alliance Resources Inc. Files Audited Annual Financial Statements With SEDAR
International Alliance Resources Inc. [NEX: ALL.H] has filed its audited annual financial statements with SEDAR for fiscal year 2007, ended June 30th. The financials [PDF file] got an unqualified opinion from the auditors.
There was no cash listed on the balance sheet for either FY 2007 or FY 2006. Current assets totaled $38,682 in FY '07, up from $29,392 in FY '06. Current liabilities, almost all of which were accounts payable and accrued expenses, went from $1,713,847 in FY '06 to $1,965,967. As a result, the working capital deficit increased from $1,684,455 to $1,918,822. Book value increased from -36.1 cents/share to -8.31 cents/share because of an increase in the weighted average of common shares from 4,566,319 to 22,613,258. This increase was due to a private placement of 18,299,999 shares for net proceeds of $1,145,396 ($1,170,000 gross) near the beginning of FY '07. The book value in dollar terms decreased from -$1,646,612 to -$1,879,675.
Expenses in FY '07 were $223,492, $39,954 less than FY '06's $263,446. $21,439 of that shrinkage was attributed to no stock-based compensation in FY '07, as compared with the same $21,439 in FY '06. The other main cause of the shrinking was a $15,800 decrease in interest and bank charges, to $75,061. A $9,571 write-down of a resource property increased the net loss for FY '07 to $233,063, as compared with that same $263,446 in FY '06. The increase in the number of issued shares was the main reason for the per-share loss shrinking from 5.77 cents/share to 0.986 cents/share. Because there was a $250,505 increase in accounts payable, operating activities actually provided $18,033 in cash during FY '07, as compared with the use of $1,132,063 in FY '06. Because investing activities consumed $19,648 in FY '07, as compared with $15,225 in FY '06, cash went down by $1,615 in the former period to a deficit (overdraft) of $2,109. As specified in Note 3 of the financials, Alliance owns claims in the Yukon Territory, the Hess River Project. Almost all of the money used for investment activities was spent on these claims, for acquisition of more of them ($15,225) and exploration on them ($3,648.) As might be expected, Note 8 discloses that accounts payable includes $241,740 owed to directors or companies controlled by them at the end of FY '07, as compared with $206,345 at the end of FY '06.
Note 10 specifies two option agreements entered into, for a 70% interest in the Parallax Claims and a 51% interest in the Shaver Lake Property. Each of the two are being pursued as potential qualifying transactions for listing on Tier 2 of the Venture Exchange. Alliance intends to pursue a $2,422,000 non-brokered private placement to meet the expenses of their commitments to explore the former property.
There was no cash listed on the balance sheet for either FY 2007 or FY 2006. Current assets totaled $38,682 in FY '07, up from $29,392 in FY '06. Current liabilities, almost all of which were accounts payable and accrued expenses, went from $1,713,847 in FY '06 to $1,965,967. As a result, the working capital deficit increased from $1,684,455 to $1,918,822. Book value increased from -36.1 cents/share to -8.31 cents/share because of an increase in the weighted average of common shares from 4,566,319 to 22,613,258. This increase was due to a private placement of 18,299,999 shares for net proceeds of $1,145,396 ($1,170,000 gross) near the beginning of FY '07. The book value in dollar terms decreased from -$1,646,612 to -$1,879,675.
Expenses in FY '07 were $223,492, $39,954 less than FY '06's $263,446. $21,439 of that shrinkage was attributed to no stock-based compensation in FY '07, as compared with the same $21,439 in FY '06. The other main cause of the shrinking was a $15,800 decrease in interest and bank charges, to $75,061. A $9,571 write-down of a resource property increased the net loss for FY '07 to $233,063, as compared with that same $263,446 in FY '06. The increase in the number of issued shares was the main reason for the per-share loss shrinking from 5.77 cents/share to 0.986 cents/share. Because there was a $250,505 increase in accounts payable, operating activities actually provided $18,033 in cash during FY '07, as compared with the use of $1,132,063 in FY '06. Because investing activities consumed $19,648 in FY '07, as compared with $15,225 in FY '06, cash went down by $1,615 in the former period to a deficit (overdraft) of $2,109. As specified in Note 3 of the financials, Alliance owns claims in the Yukon Territory, the Hess River Project. Almost all of the money used for investment activities was spent on these claims, for acquisition of more of them ($15,225) and exploration on them ($3,648.) As might be expected, Note 8 discloses that accounts payable includes $241,740 owed to directors or companies controlled by them at the end of FY '07, as compared with $206,345 at the end of FY '06.
Note 10 specifies two option agreements entered into, for a 70% interest in the Parallax Claims and a 51% interest in the Shaver Lake Property. Each of the two are being pursued as potential qualifying transactions for listing on Tier 2 of the Venture Exchange. Alliance intends to pursue a $2,422,000 non-brokered private placement to meet the expenses of their commitments to explore the former property.
Thursday, November 1, 2007
The Silver Recycling Company Inc. Files Audited Annual Report With SEDAR
The Silver Recycling Company Inc. [NEX: TSR.H] has filed its audited annual financial statements with SEDAR for fiscal year 2007, ended June 30th, along with the accompanying Management Discussion and Analysis. The financials [PDF file] got an unqualified opinion from the auditors.
Cash decreased from $226,599 as of the end of FY 2006, or June 30/06, to $31,881 as of the end of FY '07. Current assets decreased from $226,599 to $49,231 in the same time period, while current liabilities increased from $93,201 to $208,782. As a result, working capital shrunk from a $133,398 surplus to a $159,551 deficit from FY '06 to FY '07. Book value also went from positive to negative - specifically, from $65,901, or 1.47 cents/share, to -$199,835, or -2.12 cents/share. The cash drain would have been more severe had the company not secured $221,191 of proceeds for the issuance of 1,991,666 shares upon the exercise of warrants from a private placement completed on April 19th, 2006.
Silver Recycling lost $504,334 before other items in FY '07. Since it was an active company in fiscal '06, the results for the two time periods are not comparable: the only income earned by the company in the former period was $21 in interest and other income. There was also a $2,500 loss due to the forgiveness of debt, so the net loss for FY '07 was $511,823 or 5.43 cents/share. According to note 9 of the financials, the company has $5,716,000 worth of non-capital tax-loss carry-forwards. $126,000 of them expire in 2008, and $4,233,000 of them expire in 2009.
The accompanying M D & A [PDF file] opens with a recount of a takeover-in-progress of an unnamed U.S.-based silver scrap company. A non-binding letter of intent was entered into on June 11 of this year, which will expire on November 15th due to a negotiated extension of its life. Later, the M D & A says, "Management is in discussion with two to three other potential acquisition targets" and that an increase in professional fees paid out are the result of due diligence associated with the letter of intent. Also from it: "The success of the Company is dependant upon the continuing support of its current creditors and its ability to continue to raise financing to fund operations and ultimately upon its ability to achieve profitable operations." TSR.H last traded on Tuesday, and closed at 37 cents/share on that day.
Cash decreased from $226,599 as of the end of FY 2006, or June 30/06, to $31,881 as of the end of FY '07. Current assets decreased from $226,599 to $49,231 in the same time period, while current liabilities increased from $93,201 to $208,782. As a result, working capital shrunk from a $133,398 surplus to a $159,551 deficit from FY '06 to FY '07. Book value also went from positive to negative - specifically, from $65,901, or 1.47 cents/share, to -$199,835, or -2.12 cents/share. The cash drain would have been more severe had the company not secured $221,191 of proceeds for the issuance of 1,991,666 shares upon the exercise of warrants from a private placement completed on April 19th, 2006.
Silver Recycling lost $504,334 before other items in FY '07. Since it was an active company in fiscal '06, the results for the two time periods are not comparable: the only income earned by the company in the former period was $21 in interest and other income. There was also a $2,500 loss due to the forgiveness of debt, so the net loss for FY '07 was $511,823 or 5.43 cents/share. According to note 9 of the financials, the company has $5,716,000 worth of non-capital tax-loss carry-forwards. $126,000 of them expire in 2008, and $4,233,000 of them expire in 2009.
The accompanying M D & A [PDF file] opens with a recount of a takeover-in-progress of an unnamed U.S.-based silver scrap company. A non-binding letter of intent was entered into on June 11 of this year, which will expire on November 15th due to a negotiated extension of its life. Later, the M D & A says, "Management is in discussion with two to three other potential acquisition targets" and that an increase in professional fees paid out are the result of due diligence associated with the letter of intent. Also from it: "The success of the Company is dependant upon the continuing support of its current creditors and its ability to continue to raise financing to fund operations and ultimately upon its ability to achieve profitable operations." TSR.H last traded on Tuesday, and closed at 37 cents/share on that day.
Wednesday, October 31, 2007
International LMM Ventures Corp. Files Interim, Unaudited Statement With SEDAR
International LMM Ventures Corp. [NEX: LMM.H] has filed interim, unaudited financial statements for the third quarter of fiscal year 2007, ended August 31st, along with the accompanying Management Discussion and Analysis. According to the financials [PDF file], cash decreased from $2,515 as of the end of FY '06, or November 30/06, to $402. Current assets shrunk from $2,685 to $1,629: a $1,157 increase in GST receivables explains the differential. Current liabilities increased from $520,843 to $646,402 in the same time period. Consequently, the working capital deficit increased from $518,158 to $644,773. Book value decreased from -12.1 cents/share to -30.1 cents/share. (Had it not been for a 2-for-1 consolidation of shares as of July 19th, 2007, the latter figure would have been -15.0 cents/share.)
Expenses went up from $36,338, or 0.740 cents/share, in 3Q '06 to $55,525 , or 2.59 cents/share, in 3Q'07. Increases of $167 in filing fees, $4,700 in interest and bank charges, $13,699 in professional fees, and $775 in transfer agent expenses all contributed to the increase. Management fees and rent remained constant; office expense decreased by $154. Since there were no other items, the net loss for each quarter equalled the corresponding expenses; in per-share terms, the loss was 0.740 cents in 3Q '06 and 2.59 cents in 3Q '07. The cash flow statement reveals that the cash used in operations was replenished by loans. Note 4 discloses that the loan-payable outstanding is from a shareholder, is payable on demand, and bears interest at a 12% annual rate. As of the end of 3Q '07, $304,360 from this source is due, up from $250,677 as of the end of FY '06.
In relation to the loans, the accompaying M D & A [PDF file] states that "[t]he Company continues to rely on advances from related parties to continue operations and will continue operations to do so until adequate equity or debt financing is available to the Company." It also says that LMM is is no current line of business, but is looking for one. LMM.H last traded on Monday, on which it closed at 50 cents/share.
Expenses went up from $36,338, or 0.740 cents/share, in 3Q '06 to $55,525 , or 2.59 cents/share, in 3Q'07. Increases of $167 in filing fees, $4,700 in interest and bank charges, $13,699 in professional fees, and $775 in transfer agent expenses all contributed to the increase. Management fees and rent remained constant; office expense decreased by $154. Since there were no other items, the net loss for each quarter equalled the corresponding expenses; in per-share terms, the loss was 0.740 cents in 3Q '06 and 2.59 cents in 3Q '07. The cash flow statement reveals that the cash used in operations was replenished by loans. Note 4 discloses that the loan-payable outstanding is from a shareholder, is payable on demand, and bears interest at a 12% annual rate. As of the end of 3Q '07, $304,360 from this source is due, up from $250,677 as of the end of FY '06.
In relation to the loans, the accompaying M D & A [PDF file] states that "[t]he Company continues to rely on advances from related parties to continue operations and will continue operations to do so until adequate equity or debt financing is available to the Company." It also says that LMM is is no current line of business, but is looking for one. LMM.H last traded on Monday, on which it closed at 50 cents/share.
Radiant Resources Inc. Files Interim, Unaudited Statement With SEDAR
Radiant Resources Inc. [NEX: RRS.H] has filed interim, unaudited financial statements for the first quarter of FY '08, ended August 31st, along with the accompanying Management Discussion and Analysis. According to the financials [PDF file], cash as of the end of 1Q FY '08 was $352,141, down slightly from $356,749 as of the end of FY '07 on May 31st. Current assets also decreased slightly, from $357,312 as of the end of FY '07 to $353,406. Current liabilities increased from $13,033 to $20,885 due to a $7,411 increase in accounts payable & accrued liabilities and a $441 increase in the amounts due to related parties. As a result, working capital decreased from $344,279 to $332,521. Book value decreased from $344,279, or 8.50 cents/share, to $332,521, or 8.02 cents/share.
Expenses in 1Q '08 rose to $14,524 from $4,242 in 1Q '07. Had there not been a $10,070 in audit and accounting expenses, expenses would have been about the same in the two periods. Investment income decreased slightly, from $3,018 in 1Q '07 to $2,766 in 1Q '08. Consequently, the net loss increased from $1,224, or 0.0302 cents/share, to $11,758, or 0.283 cents/share. The decrease in cash was due to $5,049 used in operating activities, which was partially mitigated by the receipt of $441 in funds due to a related party.
The accompanying M D & A [PDF file] discloses that a reverse takeover of/by Alliance Pacific Resources Ltd. is in the works. Alliance Pacific is a private Ontario company that, through a joint venture, owns the right to explore and obtain exploration licenses "located in the western Altay Shan Mountain range of Xinjiang Province, adjacent to the Kazakhstan border innorthwestern China and south of Mongolia." The joint venture, of which Alliance Pacific owns 51%, already holds twelve exploration permits in that area. All that's left to complete the reverse takeover is the seeking of Radiant shareholder approval and finalization of a filing statement for the TSX Venture. The M D & A also notes that "[t]he company has sufficient liquidity to meet its current obligations" but may need additional financing for exploration activities if the reverse takeover goes through. Radiant is currently halted: it last closed on December 5, 2005, at 49.5 cents/share.
Expenses in 1Q '08 rose to $14,524 from $4,242 in 1Q '07. Had there not been a $10,070 in audit and accounting expenses, expenses would have been about the same in the two periods. Investment income decreased slightly, from $3,018 in 1Q '07 to $2,766 in 1Q '08. Consequently, the net loss increased from $1,224, or 0.0302 cents/share, to $11,758, or 0.283 cents/share. The decrease in cash was due to $5,049 used in operating activities, which was partially mitigated by the receipt of $441 in funds due to a related party.
The accompanying M D & A [PDF file] discloses that a reverse takeover of/by Alliance Pacific Resources Ltd. is in the works. Alliance Pacific is a private Ontario company that, through a joint venture, owns the right to explore and obtain exploration licenses "located in the western Altay Shan Mountain range of Xinjiang Province, adjacent to the Kazakhstan border innorthwestern China and south of Mongolia." The joint venture, of which Alliance Pacific owns 51%, already holds twelve exploration permits in that area. All that's left to complete the reverse takeover is the seeking of Radiant shareholder approval and finalization of a filing statement for the TSX Venture. The M D & A also notes that "[t]he company has sufficient liquidity to meet its current obligations" but may need additional financing for exploration activities if the reverse takeover goes through. Radiant is currently halted: it last closed on December 5, 2005, at 49.5 cents/share.
Themac Resources Group Ltd. Files Audited Annual Report With SEDAR
Themac Resources Group Ltd. [NEX: MAC.H] has filed its audited annual financial statements with SEDAR for fiscal year 2007, ended June 30th, along with the accompanying Management Discussion and Analysis. The financials [PDF file] got an unqualified opinion from the auditors.
Cash increased from $30,723 as of the end of FY '06 to $91,201 as of the end of FY '07. Current assets increased from $36,960 to $96,603, and current liabilities increased from $57,503 to $72,232. Consequently, the working capital deficiency of $20,543 to a surplus of $24,371. Book value also went from negative to positive during the same time period - specifically, from -20,543, or -0.538 cents/share in FY '06 to +24,371, or +0.496 cents/share in FY '07. The cash and book value both increased, due to $99,000 proceeds from 550,000 shares issued in a private placement at a deemed price of 18 cents/share and $66,666 received on exercise of 333,333 warrants at an exercise price of 20 cents/share.
Expenses for FY '07 shrunk to $156,713 from $224,714 in FY '06. Had there not been $68,970 in stock compensation, though, expenses would have increased slightly. Had loss on settlement of debt not shrunk by $28,837 to $8,462, expenses for FY '07 would have been significantly more than expenses for FY '06. Since there were no other items, expenses equalled the net loss for the year: 5.89 cents/share in FY '06 and 3.19 cents/share in FY '07. Note 4(b) indicates that the company issues shares in exchange for amounts owing on a recurrent basis.
The accompanying M D & A [PDF file] discloses that Themac has no properties. MAC.H last closed on October 19th at 23 cents/share.
Cash increased from $30,723 as of the end of FY '06 to $91,201 as of the end of FY '07. Current assets increased from $36,960 to $96,603, and current liabilities increased from $57,503 to $72,232. Consequently, the working capital deficiency of $20,543 to a surplus of $24,371. Book value also went from negative to positive during the same time period - specifically, from -20,543, or -0.538 cents/share in FY '06 to +24,371, or +0.496 cents/share in FY '07. The cash and book value both increased, due to $99,000 proceeds from 550,000 shares issued in a private placement at a deemed price of 18 cents/share and $66,666 received on exercise of 333,333 warrants at an exercise price of 20 cents/share.
Expenses for FY '07 shrunk to $156,713 from $224,714 in FY '06. Had there not been $68,970 in stock compensation, though, expenses would have increased slightly. Had loss on settlement of debt not shrunk by $28,837 to $8,462, expenses for FY '07 would have been significantly more than expenses for FY '06. Since there were no other items, expenses equalled the net loss for the year: 5.89 cents/share in FY '06 and 3.19 cents/share in FY '07. Note 4(b) indicates that the company issues shares in exchange for amounts owing on a recurrent basis.
The accompanying M D & A [PDF file] discloses that Themac has no properties. MAC.H last closed on October 19th at 23 cents/share.
Focus Ventures Ltd. Files Interim, Unaudited Statement With SEDAR
Focus Ventures Ltd. [NEX: FCV.H] has filed interim, unaudited financial statements for the third quarter of FY '07, ended August 31st, along with the accompanying Management Discussion and Analysis. According to the financials [PDF file], the cash shrunk from $105,015 as of the end of FY '06 to $51,187 as of the end of 3Q '07. Current assets shrunk from $110,092 to $57,105 during the same time period. Current liabilities shrunk slightly from $110,759 to $100,126, due to a $8,892 shrinkage in accounts payable & accrued liabilities and a $1,741 drop in amounts due to related parties. Book value shrunk for an almost negligable -$667 to -$43,021 or -0.630 cents/share.
Expenses for 3Q '07 shrunk to $13,533 from 3Q '06's $15,493. All of the expense items shrunk from 3Q '06 to 3Q '07 with the exception of regulatory and stock exchange fees which went up by $543 to $1,893. The other items comprise interest income, which shrunk from $1,131 to $623 from 3Q '06 to 3Q '07. The quarterly net loss shrank from $14,362, or 0.216 cents/share, to $12,910, or 0.189 cents/share. The shrinkage in cash was attributable to its use in operating activites, except for $2,732 in receipts from related parties and $84 in payments to related parties in 3Q '07. The same thing applies to 3Q '06, except that there was no cash gotten or used as a result of financing activities in the earlier quarter. Note 4 specifies that unpaid managment fees in the amount of $52,500 (net, cumulative) have been recorded as accrued liabilities, as compared with $30,000 (also net cumulative) at the end of 3Q '06.
The accompanying M D & A [PDF file] states that "Management expects that the Company will have sufficient working capital to meet its corporate commitments over the next 12 months, and to fund the search for a new mineral property interest for the Company. Actual funding requirements may vary from those planned due to a number of factors, including the progress of property acquisition and exploration activity. Management believes it will be able to raise equity capital as required in the long term, but recognizes the uncertainty attached thereto." In other words, Focus has enough cash and reserves to keep it afloat without the need for outside financing over the next 12 months. FCV.H last closed at 35.5 cents/share on October 16th; ever since then, only odd lots have been traded. One of 100 shares went on Tuesday, at 33.5 cents/share.
Expenses for 3Q '07 shrunk to $13,533 from 3Q '06's $15,493. All of the expense items shrunk from 3Q '06 to 3Q '07 with the exception of regulatory and stock exchange fees which went up by $543 to $1,893. The other items comprise interest income, which shrunk from $1,131 to $623 from 3Q '06 to 3Q '07. The quarterly net loss shrank from $14,362, or 0.216 cents/share, to $12,910, or 0.189 cents/share. The shrinkage in cash was attributable to its use in operating activites, except for $2,732 in receipts from related parties and $84 in payments to related parties in 3Q '07. The same thing applies to 3Q '06, except that there was no cash gotten or used as a result of financing activities in the earlier quarter. Note 4 specifies that unpaid managment fees in the amount of $52,500 (net, cumulative) have been recorded as accrued liabilities, as compared with $30,000 (also net cumulative) at the end of 3Q '06.
The accompanying M D & A [PDF file] states that "Management expects that the Company will have sufficient working capital to meet its corporate commitments over the next 12 months, and to fund the search for a new mineral property interest for the Company. Actual funding requirements may vary from those planned due to a number of factors, including the progress of property acquisition and exploration activity. Management believes it will be able to raise equity capital as required in the long term, but recognizes the uncertainty attached thereto." In other words, Focus has enough cash and reserves to keep it afloat without the need for outside financing over the next 12 months. FCV.H last closed at 35.5 cents/share on October 16th; ever since then, only odd lots have been traded. One of 100 shares went on Tuesday, at 33.5 cents/share.
Agrotech Greenhouses Inc. Files Interim, Unaudited Statement With SEDAR
Agrotech Greenhouses Inc. [NEX: AGV.H] has filed interim, unaudited financial statements for the third quarter of FY '07, ended August 31st, along with the accompanying Management Discussion and Analysis. According to the financials [PDF file], Agrotech had $7,217 worth of cash as of August 31st, 2007, up from $5,187 as of November 30th, 2006. Current assets, though, shrunk from $53,187 to $14,965 in the same time period. Current liabilities increased, from $3,916,853 to $4,117,096, due to a $160,253 increase in accounts payable and accrued liabilities and a $40,000 increase in the amount of a demand loan. As a result, the working capital deficiency widened from $3,863,666 to $4,102,131. Book value also shrunk, from -21.9 cents/share to -26.3 cents/share.
For the third quarter of this fiscal year, Agrotech had no revenue and a loss before unusual or extraordinary items of $86,904 as compared with a $111,960 loss in the third quarter of FY '06. (These figures are not quite comparable because Agrotech had revenue coming in during 3Q '06.) A $57,000 write-off of a receivable increased the quarterly loss to $143,904, or 2.10 cents/share, as compared with 3Q '06's loss of 1.63 cents/share. There was also revenue - specifically, rental revenue - during the first quarter of FY '07 but no others, for a total of $36,000 for the first nine months of that year. Revenue in the first three quarters of FY '06 was $108,000. The loss before other items widened from $195,783 to $251,293, and the loss for the first three quarters of FY '07 widened further to $305,429 or 4.46 cents/share from 2.86 cents/share in the same period of FY '06. The statement of cash flows shows that the cash used in operating activities was $37,969, which was more than covered by an increase of $40,000 in the demand loan.
The accompanying M D & A [PDF file] explains that the write-off came from rental receipts foregone due to the renter going bankrupt. It also explains that a large part of the expenses was interest expense, in the amount of $287,293 for the first three quarters of FY '07 as compared with $195,783 in the first three quarters of FY '06. For the third quarters of FY '07 and '06 specifically, interest expense was unchanged at $51,978 for both periods. All loans are currently in default. $200,000 in loans are due to a related company controlled by a director of Agrotech. AGV.H last closed on Sept. 12th, at 2 cents/share.
For the third quarter of this fiscal year, Agrotech had no revenue and a loss before unusual or extraordinary items of $86,904 as compared with a $111,960 loss in the third quarter of FY '06. (These figures are not quite comparable because Agrotech had revenue coming in during 3Q '06.) A $57,000 write-off of a receivable increased the quarterly loss to $143,904, or 2.10 cents/share, as compared with 3Q '06's loss of 1.63 cents/share. There was also revenue - specifically, rental revenue - during the first quarter of FY '07 but no others, for a total of $36,000 for the first nine months of that year. Revenue in the first three quarters of FY '06 was $108,000. The loss before other items widened from $195,783 to $251,293, and the loss for the first three quarters of FY '07 widened further to $305,429 or 4.46 cents/share from 2.86 cents/share in the same period of FY '06. The statement of cash flows shows that the cash used in operating activities was $37,969, which was more than covered by an increase of $40,000 in the demand loan.
The accompanying M D & A [PDF file] explains that the write-off came from rental receipts foregone due to the renter going bankrupt. It also explains that a large part of the expenses was interest expense, in the amount of $287,293 for the first three quarters of FY '07 as compared with $195,783 in the first three quarters of FY '06. For the third quarters of FY '07 and '06 specifically, interest expense was unchanged at $51,978 for both periods. All loans are currently in default. $200,000 in loans are due to a related company controlled by a director of Agrotech. AGV.H last closed on Sept. 12th, at 2 cents/share.
Tuesday, October 30, 2007
Gold Star Resources Corp. Files Audited Annual Report With SEDAR
Gold Star Resources Corp. [NEX: GXX.H] has filed its audited annual financial statements with SEDAR for fiscal year 2007, ended June 30th, along with the accompanying Management Discussion and Analysis. The financials [PDF file] got an unqualified opinion from the auditors.
Cash decreased from $3,028 as of June 30/06, to $426 as of June 30/07. GST receivables, though, increased by $5,037 in the same time period to $7,173. As a result, current assets increased from $5,164 as of the end of FY '06 to $7,599 as of the end of FY '07. Current liabilities decreased from $147,769 to $58,669, due to a $29,792 decrease in accounts payable & accrued liabilities and a $59,308 decrease in amounts due to related parties. Consequently, the working capital deficiency shrunk from $142,605 as of the end of FY '06 to $51,070 as of the end of FY '07. Book value increased from -2.72 cents/share to -0.859 cents/share. The decreases in current liabilities and increase in book value were caused by $378,250 worth of proceeds from the private-placement issuance of 2,225,000 common shares in FY '07, as explained in Note 4 (b). Note 4(c) discloses that there are currently 2,225,000 warrants outstanding from that placement, with exercise price of 23 cents per warrant and expiry date of March 6, 2008.
Net loss before other items for FY '07 increased to $279,904 from $204,221 in FY '06. Most of the expenses categories increased in FY '07: accounting and legal expense increased $10,021 to $44,127; interest and bank charges increased by $69 to $484; consulting fees increased to $41,500 by the same amount; general exploration expense increased from nil to $39,789; and, office, rent and telephone expenses increased by $12,361 to $40,466. Investor communication, trade shows and web site expenses decreased by $129 to $4,473; transfer agent and regulatory fees decreased by $1,632 to $10,174; and, write-off of mineral property expenditures decreased by $26,296 to $68,891. Net loss increased from 3.90 cents/share to 4.82 cents/share. As explained in Note 3, the addition of the mineral property expenditues in FYs '07 and '06 was due to the abandonment of two options on two different properties, one during each fiscal year. As of June 30th of this year, Gold Star has $1,103,044 of non-capital tax losses, $74,186 of which expire in 2008, and unclaimed resource deductions in the amount of $1,076,171.
The accompanying M D & A [PDF file] says that three properties have been abandoned by Gold Star since 2004, and that the company is "desirous of finding a mineral project and has been actively looking at several properties... but there are certain conditions to meet. Any project the Company wishes to acquire must have a 43-101 report to comply with regulatory requirements. In addition, the Company needs to engage personnel with mineral exploration experience to assess, monitor and manage the projects." It also discloses that the consulting fees and exploration expenses were paid to find a property that meets these conditions, and that the company had had no revenue since, most recently, as of the beginning of FY 2006. GXX.H closed Monday at 19 cents/share, up 1 cent/share since Friday's close.
Cash decreased from $3,028 as of June 30/06, to $426 as of June 30/07. GST receivables, though, increased by $5,037 in the same time period to $7,173. As a result, current assets increased from $5,164 as of the end of FY '06 to $7,599 as of the end of FY '07. Current liabilities decreased from $147,769 to $58,669, due to a $29,792 decrease in accounts payable & accrued liabilities and a $59,308 decrease in amounts due to related parties. Consequently, the working capital deficiency shrunk from $142,605 as of the end of FY '06 to $51,070 as of the end of FY '07. Book value increased from -2.72 cents/share to -0.859 cents/share. The decreases in current liabilities and increase in book value were caused by $378,250 worth of proceeds from the private-placement issuance of 2,225,000 common shares in FY '07, as explained in Note 4 (b). Note 4(c) discloses that there are currently 2,225,000 warrants outstanding from that placement, with exercise price of 23 cents per warrant and expiry date of March 6, 2008.
Net loss before other items for FY '07 increased to $279,904 from $204,221 in FY '06. Most of the expenses categories increased in FY '07: accounting and legal expense increased $10,021 to $44,127; interest and bank charges increased by $69 to $484; consulting fees increased to $41,500 by the same amount; general exploration expense increased from nil to $39,789; and, office, rent and telephone expenses increased by $12,361 to $40,466. Investor communication, trade shows and web site expenses decreased by $129 to $4,473; transfer agent and regulatory fees decreased by $1,632 to $10,174; and, write-off of mineral property expenditures decreased by $26,296 to $68,891. Net loss increased from 3.90 cents/share to 4.82 cents/share. As explained in Note 3, the addition of the mineral property expenditues in FYs '07 and '06 was due to the abandonment of two options on two different properties, one during each fiscal year. As of June 30th of this year, Gold Star has $1,103,044 of non-capital tax losses, $74,186 of which expire in 2008, and unclaimed resource deductions in the amount of $1,076,171.
The accompanying M D & A [PDF file] says that three properties have been abandoned by Gold Star since 2004, and that the company is "desirous of finding a mineral project and has been actively looking at several properties... but there are certain conditions to meet. Any project the Company wishes to acquire must have a 43-101 report to comply with regulatory requirements. In addition, the Company needs to engage personnel with mineral exploration experience to assess, monitor and manage the projects." It also discloses that the consulting fees and exploration expenses were paid to find a property that meets these conditions, and that the company had had no revenue since, most recently, as of the beginning of FY 2006. GXX.H closed Monday at 19 cents/share, up 1 cent/share since Friday's close.
Cierra Pacific Ventures Inc. Files Audited Annual Report With SEDAR
Cierra Pacific Ventures Inc. [NEX: CIZ.H] has filed its audited annual financial statements with SEDAR for fiscal year 2007, ended June 30th, along with the accompanying Management Discussion and Analysis. The financials [PDF file] got an unqualified opinion from the auditors.
Cash held by Cierra Pacific dropped from $1,673 as of June 30th, 2006 to $55 as of June 30th, 2007. This loss was mitigated somewhat by an increase in a deposit from $1,250 to $1,325 in that same period. Current assets dropped from $3,249 to $1,548. Current liabilities, on the other hand, increased from $363,047 to $524,962. The largest dollar increase was in the due-to-related-parties category, which went up by $110,316 to $320,044 as of the end of FY '07. Consequently, the working capital deficit increased from $360,281 to $523,414. Book value decreased from -5.04 cents/share as of the end of FY '06 to -7.33 cents/share as of the end of FY '07. There were no investment activities listed in the statement of cash flows for either fiscal year; the only financing activities were the borrowing of $11,035 in FY '07 as compared with the borrowing of $28,646 in FY '06. Cash used in operating activities decreased from $27,405 in FY '06 to $12,653 in FY '07; both amounts were only a small fraction of the net losses for the year before any extraordinary items ($126,828 in FY '06 and $163,616 in FY '07.)
As just indicated, expenses increased by $36,788 from FY '06 to FY '07, as caused by: a $4,148 increase in interest and bank charges; a $742 increase in shareholder-information expenses; a $11,585 increase in office and administrative expenses; a $20,400 increase in professional fees; and, a $1,060 increase in transfer agent fees. Filing fees decreased by $1,147 in the same time period; management fees (of $30,000) and rent (of $24,000) stayed constant. Note 4 discloses that management, office & administration, and professional fees were all accrued and are all due to related parties. According to Note 6, Cierra currently has $721,653 in non-capital tax losses, of which $65,253 expire in 2008, and about $5,191,023 in capital losses. Neither of these items are vendible.
The accompanying M D & A [PDF file] discloses, as does note 4 of the financials, that $145,565 has been borrowed from "a company related to a director of the Company." The amount owing was $134,530 in FY '06. "This loan [bears] interest at 12% per annum, unsecured, with no fixed terms of repayment. Accrued interest to date is $46,444." It also explains that bank charges are negligible compared to interest expense in the interest-and-bank-charges account, and further discloses that the part of the net loss incurred in the fourth quarter of FY '07 was $64,045. CIZ.H closed Monday at 22 cents/share, up 2 cents/share from the previous close set on September 19th.
Cash held by Cierra Pacific dropped from $1,673 as of June 30th, 2006 to $55 as of June 30th, 2007. This loss was mitigated somewhat by an increase in a deposit from $1,250 to $1,325 in that same period. Current assets dropped from $3,249 to $1,548. Current liabilities, on the other hand, increased from $363,047 to $524,962. The largest dollar increase was in the due-to-related-parties category, which went up by $110,316 to $320,044 as of the end of FY '07. Consequently, the working capital deficit increased from $360,281 to $523,414. Book value decreased from -5.04 cents/share as of the end of FY '06 to -7.33 cents/share as of the end of FY '07. There were no investment activities listed in the statement of cash flows for either fiscal year; the only financing activities were the borrowing of $11,035 in FY '07 as compared with the borrowing of $28,646 in FY '06. Cash used in operating activities decreased from $27,405 in FY '06 to $12,653 in FY '07; both amounts were only a small fraction of the net losses for the year before any extraordinary items ($126,828 in FY '06 and $163,616 in FY '07.)
As just indicated, expenses increased by $36,788 from FY '06 to FY '07, as caused by: a $4,148 increase in interest and bank charges; a $742 increase in shareholder-information expenses; a $11,585 increase in office and administrative expenses; a $20,400 increase in professional fees; and, a $1,060 increase in transfer agent fees. Filing fees decreased by $1,147 in the same time period; management fees (of $30,000) and rent (of $24,000) stayed constant. Note 4 discloses that management, office & administration, and professional fees were all accrued and are all due to related parties. According to Note 6, Cierra currently has $721,653 in non-capital tax losses, of which $65,253 expire in 2008, and about $5,191,023 in capital losses. Neither of these items are vendible.
The accompanying M D & A [PDF file] discloses, as does note 4 of the financials, that $145,565 has been borrowed from "a company related to a director of the Company." The amount owing was $134,530 in FY '06. "This loan [bears] interest at 12% per annum, unsecured, with no fixed terms of repayment. Accrued interest to date is $46,444." It also explains that bank charges are negligible compared to interest expense in the interest-and-bank-charges account, and further discloses that the part of the net loss incurred in the fourth quarter of FY '07 was $64,045. CIZ.H closed Monday at 22 cents/share, up 2 cents/share from the previous close set on September 19th.
GTO Resources Inc. Files Interim, Unaudited Statement With SEDAR
GTO Resources Inc. [NEX: GTR.H] has filed interim, unaudited financial statements for the second quarter of FY '07, ended August 31st, along with the accompanying Management Discussion and Analysis. According to the financials [PDF file], cash and cash equivalents increased from $268,368 as of the end of FY '06 (ended Feb. 28th) to $965,644 as of the end of 2Q '07. Working capital increased from $465,842 as of the former date (as fortified by a $200,000 term deposit that was liquidated later) to $962,548. The only item in current liabilities, accounts payable, fell from $12,177 to $8,654. The increase in cash, as well as an increase in the book value from 7.70 cents/share as of the former date to 12.0 cents/share as of the latter date, is due to $514,150 worth of proceeds from the exerise of warrants in 1Q '07. Other than the purchase and redemption of the term deposit, there were no investment activities since the first quarter of FY '06. (Unusually, the proceeds from the redemption of the term deposit was $20,000 less than the money invested in it, according to the statement of cash flows.)
Expenses for 2Q '07 dropped slightly from expenses in 2Q '06. This drop was due to a $1,268 decrease in shareholder information expenses, to $78 for 2Q '07. Professional fees increased by $1,056 to $2,055, and office & miscellaneous expenses increased slightly. Transfer agent, listing and filing fees dropped by $303 to $6,148
The only income GTO had in the quarter was interest income, which increased from $2,032 in 2Q '06 to $9,614 in 2Q '07. As a result, the net loss shrunk from $14,506, or 0.289 cents/share, to $6,443, or 0.0802 cents/share. Net loss for the first six months of 2007 from the first six months of FY 2006 shrunk by $10,406, to $17,444 or 0.219 cents/share. The drop in cash used in operating activities for the second quarter was slighter, from $14,380 in 2Q '06 to $10,351 in 2Q '07. In note 5, Related Party Transactions, part (a) discloses: "Pursuant to an agreement dated December 31, 2004 the Company pays Quest Management Corp. ('Quest'), a company related by virtue of an officer and director in common, a fee of $2,500 per month plus expenses for office space, supplies, and accounting services. The Company paid $15,000 for the six months ending August 31, 2007." The other disclosure is of $2,669 due to related parties, which was put in accounts payable and accrued liabilities.
The accompanying M D & A [PDF file] notes that "[t]he Company wrote off all mineral property expenditures during the fiscal year ending February 28, 2004 and has not conducted any mineral property exploration work since the fiscal year ended February 28, 2000." Later noted is, "[t]he Company is a 15.99% participant in an early stage exploration joint venture" which is unidentified by name. GTR.H's last close was on October 17th, at 65 cents/share.
Expenses for 2Q '07 dropped slightly from expenses in 2Q '06. This drop was due to a $1,268 decrease in shareholder information expenses, to $78 for 2Q '07. Professional fees increased by $1,056 to $2,055, and office & miscellaneous expenses increased slightly. Transfer agent, listing and filing fees dropped by $303 to $6,148
The only income GTO had in the quarter was interest income, which increased from $2,032 in 2Q '06 to $9,614 in 2Q '07. As a result, the net loss shrunk from $14,506, or 0.289 cents/share, to $6,443, or 0.0802 cents/share. Net loss for the first six months of 2007 from the first six months of FY 2006 shrunk by $10,406, to $17,444 or 0.219 cents/share. The drop in cash used in operating activities for the second quarter was slighter, from $14,380 in 2Q '06 to $10,351 in 2Q '07. In note 5, Related Party Transactions, part (a) discloses: "Pursuant to an agreement dated December 31, 2004 the Company pays Quest Management Corp. ('Quest'), a company related by virtue of an officer and director in common, a fee of $2,500 per month plus expenses for office space, supplies, and accounting services. The Company paid $15,000 for the six months ending August 31, 2007." The other disclosure is of $2,669 due to related parties, which was put in accounts payable and accrued liabilities.
The accompanying M D & A [PDF file] notes that "[t]he Company wrote off all mineral property expenditures during the fiscal year ending February 28, 2004 and has not conducted any mineral property exploration work since the fiscal year ended February 28, 2000." Later noted is, "[t]he Company is a 15.99% participant in an early stage exploration joint venture" which is unidentified by name. GTR.H's last close was on October 17th, at 65 cents/share.
Golden Hat Resources Inc. Files Audited Annual Report With SEDAR
Golden Hat Resources Inc. [NEX: GHA.H] has filed its audited annual financial statements with SEDAR for fiscal year 2007, ended June 30th, along with the accompanying Management Discussion and Analysis. The financials [PDF file] got an unqualified opinion from the auditors.
Golden Hat's cash increased from $16,592 as of the end of FY '06 (also ended June 30th) to $55,610 as of the end of FY '07. Current assets increased from $22,738 to $61,757 in the same time period. Current liabilities shrunk from $154,997 to $139,723, narrowing the working-capital deficit from $132,259 to $77,966. Book value increased from -0.0831 cents/share to +0.204 cents/share due to the issuance of common shares.
Net loss for FY '07 increased from $106,874 to $154,040 despite a shrinking in expenses from $175,436 to $124,463. The difference is explained in the other-items category: FY '06 saw a reduction of the net loss by $68,562 due to the write-off of accounts payable, because the statutory period for their collection has passed and (as note 10 further explains) "management have determined that they will not be paid." There were no analagous reductions in FY '07; instead, the loss increased due to a $29,577 write-off of the value of a resource property - the Nova Scotia Gold property according to Note 9. As far as the expense items were concerned, all items shrunk except for management fees of $30,000, which remained constant, and Rent & Utilities, which increased slightly. Net loss, though, increased from 0.448 cents/share in FY '06 to 0.461 cents/share in FY '07. A reported increase of 9,576,869 in the weighted average of common shares outstanding explains why the reported per-share loss increased far less than the dollar loss from FY '06 to FY '07.
The accompanying M D & A [PDF file] contains little other than a brief description of the issues facing Golden Hat, as well as a brief description of the Telegraph Creek project which it currently owns plus a summary table of its results for FYs '06 and '07. GHA.H closed at 8 cents/share on Monday, up 0.5 cents/share from Friday's close.
Golden Hat's cash increased from $16,592 as of the end of FY '06 (also ended June 30th) to $55,610 as of the end of FY '07. Current assets increased from $22,738 to $61,757 in the same time period. Current liabilities shrunk from $154,997 to $139,723, narrowing the working-capital deficit from $132,259 to $77,966. Book value increased from -0.0831 cents/share to +0.204 cents/share due to the issuance of common shares.
Net loss for FY '07 increased from $106,874 to $154,040 despite a shrinking in expenses from $175,436 to $124,463. The difference is explained in the other-items category: FY '06 saw a reduction of the net loss by $68,562 due to the write-off of accounts payable, because the statutory period for their collection has passed and (as note 10 further explains) "management have determined that they will not be paid." There were no analagous reductions in FY '07; instead, the loss increased due to a $29,577 write-off of the value of a resource property - the Nova Scotia Gold property according to Note 9. As far as the expense items were concerned, all items shrunk except for management fees of $30,000, which remained constant, and Rent & Utilities, which increased slightly. Net loss, though, increased from 0.448 cents/share in FY '06 to 0.461 cents/share in FY '07. A reported increase of 9,576,869 in the weighted average of common shares outstanding explains why the reported per-share loss increased far less than the dollar loss from FY '06 to FY '07.
The accompanying M D & A [PDF file] contains little other than a brief description of the issues facing Golden Hat, as well as a brief description of the Telegraph Creek project which it currently owns plus a summary table of its results for FYs '06 and '07. GHA.H closed at 8 cents/share on Monday, up 0.5 cents/share from Friday's close.
Saturday, October 27, 2007
IDG Holdings Inc. Files Audited Annual Report And Interim Unaudited Quarterly Report With SEDAR
IDG Holdings Inc. [NEX: IDH.H] has filed its annual report for fiscal year 2007, ended June 30th 2007 [PDF file], which has also been split into the financial statements for that fiscal year [PDF file] and the accompanying Management Discussion and Analysis [PDF file]. The financials received an unqualified opinion from the auditors.
Cash shrunk quite a bit from FY '06 to FY '07 - specifically, from $355,503 to $20,399. Short-term investments, though, ballooned from $140,070 in FY '06 to $671,879 in FY '07; additionally, a loan receivable of $109,000 was added to current assets. Despite those two increases, total current assets shrunk from $1,119,057 to $826,305 because of the disappearance of accounts receivable and inventories from the balance sheet. Because current liabilities decreased from $155,865 to $21,441, working capital decreased only $205,058 from FY '06's figure of $1,009,922 to FY '07's $804,864. Book value decreased from 10.4 cents/share to 7.88 cents/share.
Since IDG was actively in business during FY 2006, it reported income and expenses in the regular way; that format was used for FY '07's results even though there was no business activity during that time. For FY '07, the only income received was $23,932 in interest income. Operating expenses for the year came to $96,995, resulting in a net loss before interest, taxes, depreciation and amortization of $73,063.
With ITDA added, the net loss shrunk to $39,814. This occurred because of a tax recovery in the amount of $25,027 and the accreted interest received "on loan advanced on sale of Integral Designs" of $11,000. $97,155 worth of the shrinkage of the book value resulted from a dividend paid out.
The cash flow statement shows a cash loss of $48,036 for FY '07, and total cash used in operating activities of $86,088. Investing activities, as is usual for this category in general, used up $63,234 in cash. This use was due to significantly more than the $408,575 cash component of the sale price of Integral Designs, plus the $60,000 in loan payments received, being plowed into short-term investments, as noted above. The financing part of the cash flow statement showed a decrease of $98,240 in cash, almost all of which went to the dividend payment. The other $1,085 was spent by IDG on its own shares. Also noted in the cash-flow statement is the non-cash component of the sale proceeds of Integrated Designs, which was $430,060. $270,000 of it was in the form of a loan advanced; $160,060 was in the form of shares of IDG handed over to the company and cancelled, as explained in Note 13. Note 5, "Related Party Transactions," notes the Integrated Designs was sold to a (now-former) director of IDG Holdings. The accompanying M D & A explains that the price was verifiably fair: "The transaction was approved by all of the non-related directors, and by shareholders, and accepted by the TSX Venture Exchange as the fair market value." It also notes that $20,000 of the expenses were "in connection with the preparation for, negotiation and closing of the sale of its former business."
The interim and unaudited report for the first quarter of FY '08 has the M D & A in front of the financial statements [PDF file] with a separate copy of the M D & A filed as well [PDF file]. According to the financial statements, cash increased by $16,805 in the first quarter, but loans receivable decreased by $30,000. Increases in two other categories helped shrink the decline in current assets to $7,104. A shrinkage of current liabilities in the amount of $7,941 resulted in a slight increase in working capital, to $886,701.
IDG has managed to be one of the few NEX companies that has reported net income, as opposed to a net loss, in a quarter. Investment income of $7,404 more than covered the quarterly expenses of $6,567, leaving net income in the amount of $837. As a result, book value increased slightly. The accompanying M D & A states, under Related-Party Transactions, that "[c]osts for accounting and administrative services reported in the financial statements comprise amounts paid to director Glynn Jones and his wife for statutory record-keeping and financial reporting for the company at less cost than available elsewhere." IDH.H last traded on Wednesday, and closed at 24.5 cents/share, its 52-week high.
Cash shrunk quite a bit from FY '06 to FY '07 - specifically, from $355,503 to $20,399. Short-term investments, though, ballooned from $140,070 in FY '06 to $671,879 in FY '07; additionally, a loan receivable of $109,000 was added to current assets. Despite those two increases, total current assets shrunk from $1,119,057 to $826,305 because of the disappearance of accounts receivable and inventories from the balance sheet. Because current liabilities decreased from $155,865 to $21,441, working capital decreased only $205,058 from FY '06's figure of $1,009,922 to FY '07's $804,864. Book value decreased from 10.4 cents/share to 7.88 cents/share.
Since IDG was actively in business during FY 2006, it reported income and expenses in the regular way; that format was used for FY '07's results even though there was no business activity during that time. For FY '07, the only income received was $23,932 in interest income. Operating expenses for the year came to $96,995, resulting in a net loss before interest, taxes, depreciation and amortization of $73,063.
With ITDA added, the net loss shrunk to $39,814. This occurred because of a tax recovery in the amount of $25,027 and the accreted interest received "on loan advanced on sale of Integral Designs" of $11,000. $97,155 worth of the shrinkage of the book value resulted from a dividend paid out.
The cash flow statement shows a cash loss of $48,036 for FY '07, and total cash used in operating activities of $86,088. Investing activities, as is usual for this category in general, used up $63,234 in cash. This use was due to significantly more than the $408,575 cash component of the sale price of Integral Designs, plus the $60,000 in loan payments received, being plowed into short-term investments, as noted above. The financing part of the cash flow statement showed a decrease of $98,240 in cash, almost all of which went to the dividend payment. The other $1,085 was spent by IDG on its own shares. Also noted in the cash-flow statement is the non-cash component of the sale proceeds of Integrated Designs, which was $430,060. $270,000 of it was in the form of a loan advanced; $160,060 was in the form of shares of IDG handed over to the company and cancelled, as explained in Note 13. Note 5, "Related Party Transactions," notes the Integrated Designs was sold to a (now-former) director of IDG Holdings. The accompanying M D & A explains that the price was verifiably fair: "The transaction was approved by all of the non-related directors, and by shareholders, and accepted by the TSX Venture Exchange as the fair market value." It also notes that $20,000 of the expenses were "in connection with the preparation for, negotiation and closing of the sale of its former business."
The interim and unaudited report for the first quarter of FY '08 has the M D & A in front of the financial statements [PDF file] with a separate copy of the M D & A filed as well [PDF file]. According to the financial statements, cash increased by $16,805 in the first quarter, but loans receivable decreased by $30,000. Increases in two other categories helped shrink the decline in current assets to $7,104. A shrinkage of current liabilities in the amount of $7,941 resulted in a slight increase in working capital, to $886,701.
IDG has managed to be one of the few NEX companies that has reported net income, as opposed to a net loss, in a quarter. Investment income of $7,404 more than covered the quarterly expenses of $6,567, leaving net income in the amount of $837. As a result, book value increased slightly. The accompanying M D & A states, under Related-Party Transactions, that "[c]osts for accounting and administrative services reported in the financial statements comprise amounts paid to director Glynn Jones and his wife for statutory record-keeping and financial reporting for the company at less cost than available elsewhere." IDH.H last traded on Wednesday, and closed at 24.5 cents/share, its 52-week high.
Benem Ventures Inc. Files Audited Statement With SEDAR
Benem Ventures Inc. has filed its audited annual report with SEDAR; the auditors gave the financial statements an unqualified opinion. According to those statements [PDF file], cash and cash equivalents increased from $2,201 as of the end of fiscal year 2006, which ended June 30th, to $17,351 as of the end of fiscal year 2007, also ended June 30th. Short-term investments, on the other hand, shrunk from $325,000 as of June 30/07 to $150,000. Prepaid expenses decreased from $5,000 to $1,250 in the same time period, while accounts receivable hardly changed. As a result, current assets declined from $339,292 to $175,677. Because current liabilities increased from $12,836 to $15,015, working capital shrunk from $326,456 as of June 30/07 to $160,662 as of one year later. Book value shrunk from $326,456, or 8.48 cents/share, to $160,662, or 3.74 cents/share, in that same time period.
The statement of expenses shows a widening of Benem's annual loss from $124,692, or 3.24 cents/share, to $180,794, or 4.20 cents/share, from FY '06 to FY'07. $45,000 of the loss was accounted for by sponsorship fees in FY '07, which were nil in FY '06. Absent that item, the loss only increased slightly. Office expenses (comprising rent, administration and "office") went from $39,083 to $64,903; the two items comprising it, as well as consulting fees, were the only ones to increase significantly from FY '06 to FY '07. The two expense items that decreased significantly were travel and promotion expenses, which shrunk from $23,581 in FY '06 to $16,282 in FY '07, and filing & transfer agent fees, which shrunk from $18,652 to $8,321. The statement of cash flows pinpoints the decrease in short-term investments as the main source of cash for the year, although $15,000 worth of proceeds in share subscriptions were received during FY '07. Note 3(c) explains these receipts as resulting from the exercise of stock options, of which there are none left as shown by note 3(d). The only source of income, interest income, shrunk from $10,473 to $8,598 even though interest received (as cash) increased from $7,299 to $12,312. The only significant related-party transactions listed in note 4 of the financials is $35,746 in legal expenses, as compared with $38,427 in FY '06, and $5,300 in consulting fees to a director as compared with nil in FY '06. "Included in accounts payable is $6,500 (2006 - $4,000) for legal fees due to a firm that is associated with a former director of the Company," Andrew Walker. The last two notes explain that the company is currently between Qualifying Transactions.
The M D & A [PDF file] explains that the $45,000 sponsorship fee was paid to Integral Wealth Securities Limited because the TSX Venture refused to grant an exemption to the sponsorship requirement for the previous Qualifying Transaction, which fell through at the end of August of this year. Benem is currently trying to acquire some mineral claims owned by Velocity Resources Canada Ltd. in exchange for $75,000 and 12 million Benem shares, plus a commitment to raise $2 million in a subsequent private placement. Benem shares have been halted ever since the now-ended earlier Qualifying Transaction was about to be announced. BNM.H last traded on August 14th, 2006; it closed at 42 cents/share on that day.
The statement of expenses shows a widening of Benem's annual loss from $124,692, or 3.24 cents/share, to $180,794, or 4.20 cents/share, from FY '06 to FY'07. $45,000 of the loss was accounted for by sponsorship fees in FY '07, which were nil in FY '06. Absent that item, the loss only increased slightly. Office expenses (comprising rent, administration and "office") went from $39,083 to $64,903; the two items comprising it, as well as consulting fees, were the only ones to increase significantly from FY '06 to FY '07. The two expense items that decreased significantly were travel and promotion expenses, which shrunk from $23,581 in FY '06 to $16,282 in FY '07, and filing & transfer agent fees, which shrunk from $18,652 to $8,321. The statement of cash flows pinpoints the decrease in short-term investments as the main source of cash for the year, although $15,000 worth of proceeds in share subscriptions were received during FY '07. Note 3(c) explains these receipts as resulting from the exercise of stock options, of which there are none left as shown by note 3(d). The only source of income, interest income, shrunk from $10,473 to $8,598 even though interest received (as cash) increased from $7,299 to $12,312. The only significant related-party transactions listed in note 4 of the financials is $35,746 in legal expenses, as compared with $38,427 in FY '06, and $5,300 in consulting fees to a director as compared with nil in FY '06. "Included in accounts payable is $6,500 (2006 - $4,000) for legal fees due to a firm that is associated with a former director of the Company," Andrew Walker. The last two notes explain that the company is currently between Qualifying Transactions.
The M D & A [PDF file] explains that the $45,000 sponsorship fee was paid to Integral Wealth Securities Limited because the TSX Venture refused to grant an exemption to the sponsorship requirement for the previous Qualifying Transaction, which fell through at the end of August of this year. Benem is currently trying to acquire some mineral claims owned by Velocity Resources Canada Ltd. in exchange for $75,000 and 12 million Benem shares, plus a commitment to raise $2 million in a subsequent private placement. Benem shares have been halted ever since the now-ended earlier Qualifying Transaction was about to be announced. BNM.H last traded on August 14th, 2006; it closed at 42 cents/share on that day.
Tuesday, October 23, 2007
Jalna Minerals Ltd. Files Audited Statement With SEDAR
Jalna Minerals Ltd. [NEX: JMA.H] has filed audited statements for fiscal year '07, ended June 30th. The financials [PDF file] received an unqualified opinion from the auditors.
According to them, the amount of cash Jalna had was $579,070 as of June 30/07, up from $469,337 as of June 30/06. Current liabilities, in the form of accounts payable and accrued liabilities, decreased from $35,902 to $13,386. Working capital increased to $569,386 as of the end of FY '07 from $439,913 as of a year earlier when FY '06 ended. The statement of cash flows reveals that the increase in cash came from $182,600 of shares issued for cash, which resulted from the exercise of 830,000 purchase warrants according to note 5, that more than compensated for the $72,867 of cash used in operating activities for the quarter. Book value decreased to 5.72 cents/share from 10.4 cents/share as of the end of FY '06.
Except for $12,406 in interest income, and an extraordinary gain of $5,349 due to the settlement of a debt of $5,350 with shares in a Jalna-held company that was carried on the books at a value of $1, Jalna had no revenue in FY '07; it had none at all in FY '06. Regular expenses went down from $93,465 in FY '06 to $70,883 in FY '07: all but two of the seven expense items in this category decreased. Both the decrease in expenses before other items and the collection of interest instead of the payment of it, as well as the extraordinary gain, contributed to lowering the annual loss to $53,128, or 0.521 cents/share, from $114,874, or 2.51 cents/share in FY '07. The weighted average of number of total shares outstanding more than doubled from FY '06 to FY '07: 4,582,543 shares to 10,187,559 of them. This doubling resulted from a major financing completed in 4Q FY'06, or in early-mid 2006 by calendar year, as indicated in the accompanying Management Discussion and Analysis [PDF file]. The M D & A identifies the company as "a mineral exploration company engaged in the acquisition and exploration of mineral properties" which "continues to seek a project of merit for acquisition." Trading in JMA.H is still halted: its last close of 30 cents/share was established on September 28th of this year.
According to them, the amount of cash Jalna had was $579,070 as of June 30/07, up from $469,337 as of June 30/06. Current liabilities, in the form of accounts payable and accrued liabilities, decreased from $35,902 to $13,386. Working capital increased to $569,386 as of the end of FY '07 from $439,913 as of a year earlier when FY '06 ended. The statement of cash flows reveals that the increase in cash came from $182,600 of shares issued for cash, which resulted from the exercise of 830,000 purchase warrants according to note 5, that more than compensated for the $72,867 of cash used in operating activities for the quarter. Book value decreased to 5.72 cents/share from 10.4 cents/share as of the end of FY '06.
Except for $12,406 in interest income, and an extraordinary gain of $5,349 due to the settlement of a debt of $5,350 with shares in a Jalna-held company that was carried on the books at a value of $1, Jalna had no revenue in FY '07; it had none at all in FY '06. Regular expenses went down from $93,465 in FY '06 to $70,883 in FY '07: all but two of the seven expense items in this category decreased. Both the decrease in expenses before other items and the collection of interest instead of the payment of it, as well as the extraordinary gain, contributed to lowering the annual loss to $53,128, or 0.521 cents/share, from $114,874, or 2.51 cents/share in FY '07. The weighted average of number of total shares outstanding more than doubled from FY '06 to FY '07: 4,582,543 shares to 10,187,559 of them. This doubling resulted from a major financing completed in 4Q FY'06, or in early-mid 2006 by calendar year, as indicated in the accompanying Management Discussion and Analysis [PDF file]. The M D & A identifies the company as "a mineral exploration company engaged in the acquisition and exploration of mineral properties" which "continues to seek a project of merit for acquisition." Trading in JMA.H is still halted: its last close of 30 cents/share was established on September 28th of this year.
Friday, October 19, 2007
Pacific Wildcat Resources Corp. Files Audited Statement With SEDAR
Pacific Wildcat Resources Corp. [NEX: PAW.H] has filed an audited set of financial statements for the second quarter of fiscal year 2007, ended June 30th [PDF file]. Cash decreased to $156,371 from $232,663 as of December 31, 2007. Working capital decreased from $225,766 to $147,930; book value decreased from 1.50 cents/share to 0.970 cents/share.
Net loss in 2Q '07 increased to $108,095, or 0.709 cents/share, from $70,899 or 0.472 cents/share in 2Q '06. The increase was almost entirely due to $30,260 in stock-based compensation, as the increases in other expense items were almost cancelled out by decreases in others. The decrease in cash was almost entirely due to the cash part of the loss in 2Q '07; there were no financing or investment activities during that quarter. The only resource assets the company has, according to note 3 of the financial statements, is a property in Indonesia that has been written down to $1. It also has a total of $1,357,768 in tax-loss carry-forwards, $1,121,418 of it in resource expenditures, according to Note 4.
The accompanying M D & A [PDF file] is in part devoted to the risk factors of the business that Pacific Wildcat is in, resource exploration and mining. PAW.H is currrently halted from trading; it last closed at 21 cents/share on September 27th.
Net loss in 2Q '07 increased to $108,095, or 0.709 cents/share, from $70,899 or 0.472 cents/share in 2Q '06. The increase was almost entirely due to $30,260 in stock-based compensation, as the increases in other expense items were almost cancelled out by decreases in others. The decrease in cash was almost entirely due to the cash part of the loss in 2Q '07; there were no financing or investment activities during that quarter. The only resource assets the company has, according to note 3 of the financial statements, is a property in Indonesia that has been written down to $1. It also has a total of $1,357,768 in tax-loss carry-forwards, $1,121,418 of it in resource expenditures, according to Note 4.
The accompanying M D & A [PDF file] is in part devoted to the risk factors of the business that Pacific Wildcat is in, resource exploration and mining. PAW.H is currrently halted from trading; it last closed at 21 cents/share on September 27th.
ST Systems Corp Catches Up With SEDAR Filings
ST Systems [NEX: SYT.H] has largely caught up with the filing of its financial statements, and there has been lots of catching up to do for the company. The annual report for fiscal years 2002 to 2005 [PDF file] has been filed, as has the annual report for FY 2006 [PDF file]; one Management Discussion and Analysis filing [PDF file] covers these annual reports. The reports, which were audited, received unqualified opinions from the auditors.
The four-years-in-one report shows a slow but steady drain in cash, which continued in FY 2006. Thanks mostly to a large issue of convertible debentures, ST Systems had a working capital deficiency of more than 2 million dollars for each of those years; it increased at a faster rate than the decrease of the cash due to increases in both the current part of the debentures outstanding and accounts payable. Book value was below zero and shrinking steadily too. The per-share loss for all five years was 2 cents. The number of shares outstanding did not change at all in those five years. The increase in the amount of the convertible debentures is explained in Note 3 of both annual reports as being caused by accrued interest on them as a result of ST being in default upon maturity. Those debentues are secured "against all of the present and after acquired property of the Company," with respect to both interest and principal payments.
The M D & A begins by recounting the history of a company whose only revenue generator, wholly-owned subsidiary Sable Systems, went bankrupt in 2001. ST has been suspended since the first of two cease-trading orders were issued against it in June 12th, 2002. (The second was issued on July 19th of '02.)
Two interim and unaudited statements, for the first and second quarters of FY '07, have also been filed, along with accompanying M D & As for each. The financial statements for the first quarter, ended March 31st [PDF file], show that the cash drain has largely been staunched. ST Systems had cash and cash equivalents of $134,751 as of March 31st as compared with $136,910 as of December 31/06. Accounts payable and accrued liabilities increased, though, as did the current amount of those convertible debentures, which expanded the working capital deficiency from $3,176,030 to $3,261,781. Book value kept shrinking, from -19.3 cents/share to -19.8 cents/share. The net loss for 1Q '07 increased to $85,751, or 0.521 cents/share, from $77,190, or 0.469 cents/share for 1Q '06. The cash flow statement explains that the decrease in cash is all due to operating activities. As the M D & A for 1Q '07 [PDF file] makes evident, the company has been kept afloat largely through accruing laibilities to its officers.
The cash kept going down, at a somewhat greater rate year-to-year, in 2Q '07 according to the interim unaudited financial statements for that quarter [PDF file.] Cash went down to $117,968 as compared with $136,910. The working capital deficit stood at $3,342,509, as compared with $3,176,030 as of 2Q '06. Book value decreased to -20.9 cents/share, as compared to -19.3 cents/share in 2Q '06. Even though the net loss for 2Q '07 shrunk to $80,728 (0.491 cents/share) from $97,190 (0.591 cents/share) in 2Q '06, a decrease of $3,943 in accounts payable and accrued liabilities caused the cash to shrink at that greater rate. Despite the shrinking in cash, interest income increased from $1,112 in 2Q '06 to $2,194 in 2Q '07. There was no revenue except for that interest income. According to the M D & A [PDF file], ST Systems is "currently undergoing a financial restructuring plan, upon the completion of which it will actively pursue new business opportunities." With regard to the quarterly loss, it states: "As the Company had no active operations and was in the process of being restructured during the period between 2005 and the second quarter of 2007, the losses are mainly attributable to accumulating interest on outstanding liabilities."
The four-years-in-one report shows a slow but steady drain in cash, which continued in FY 2006. Thanks mostly to a large issue of convertible debentures, ST Systems had a working capital deficiency of more than 2 million dollars for each of those years; it increased at a faster rate than the decrease of the cash due to increases in both the current part of the debentures outstanding and accounts payable. Book value was below zero and shrinking steadily too. The per-share loss for all five years was 2 cents. The number of shares outstanding did not change at all in those five years. The increase in the amount of the convertible debentures is explained in Note 3 of both annual reports as being caused by accrued interest on them as a result of ST being in default upon maturity. Those debentues are secured "against all of the present and after acquired property of the Company," with respect to both interest and principal payments.
The M D & A begins by recounting the history of a company whose only revenue generator, wholly-owned subsidiary Sable Systems, went bankrupt in 2001. ST has been suspended since the first of two cease-trading orders were issued against it in June 12th, 2002. (The second was issued on July 19th of '02.)
Two interim and unaudited statements, for the first and second quarters of FY '07, have also been filed, along with accompanying M D & As for each. The financial statements for the first quarter, ended March 31st [PDF file], show that the cash drain has largely been staunched. ST Systems had cash and cash equivalents of $134,751 as of March 31st as compared with $136,910 as of December 31/06. Accounts payable and accrued liabilities increased, though, as did the current amount of those convertible debentures, which expanded the working capital deficiency from $3,176,030 to $3,261,781. Book value kept shrinking, from -19.3 cents/share to -19.8 cents/share. The net loss for 1Q '07 increased to $85,751, or 0.521 cents/share, from $77,190, or 0.469 cents/share for 1Q '06. The cash flow statement explains that the decrease in cash is all due to operating activities. As the M D & A for 1Q '07 [PDF file] makes evident, the company has been kept afloat largely through accruing laibilities to its officers.
The cash kept going down, at a somewhat greater rate year-to-year, in 2Q '07 according to the interim unaudited financial statements for that quarter [PDF file.] Cash went down to $117,968 as compared with $136,910. The working capital deficit stood at $3,342,509, as compared with $3,176,030 as of 2Q '06. Book value decreased to -20.9 cents/share, as compared to -19.3 cents/share in 2Q '06. Even though the net loss for 2Q '07 shrunk to $80,728 (0.491 cents/share) from $97,190 (0.591 cents/share) in 2Q '06, a decrease of $3,943 in accounts payable and accrued liabilities caused the cash to shrink at that greater rate. Despite the shrinking in cash, interest income increased from $1,112 in 2Q '06 to $2,194 in 2Q '07. There was no revenue except for that interest income. According to the M D & A [PDF file], ST Systems is "currently undergoing a financial restructuring plan, upon the completion of which it will actively pursue new business opportunities." With regard to the quarterly loss, it states: "As the Company had no active operations and was in the process of being restructured during the period between 2005 and the second quarter of 2007, the losses are mainly attributable to accumulating interest on outstanding liabilities."
Thursday, October 18, 2007
Magnate Ventures Inc. Files Interim, Unaudited Statement With SEDAR
Magnate Ventures Inc. [NEX: MGV.H] has filed its interim unaudited financial statements for the third quarter of fiscal year 2007, ending September 30th [PDF file]. As of that date, Magnate had $1,668,626 in cash and cash equivalents, as compared with $266,799 as of December 31, 2006, and $1,668,768 in working capital; working capital as of the end of 2006 was $231,704. Book value increased from 1.26 cents/share, as of December 31, 2006, to 5.00 cents/share as of Sept. 30/07. The statement of cash flows explains that the added cash came from the exercise of 14.51 million warrants, infusing $1,451,000 into Magnate's coffers in exchange for the issuance of 14.51 million more common shares at a price of 10 cents/share. Note 7 of the financial statements explains that a 6.5-for-1 consolidation was effected on Sept. 1st, 2006, and the financial statements were adjusted to reflect it.
There was no revenue for the third quarter of FY 2007, nor any for FY '07 so far. For 3Q FY '06, there was $24,058 in revenue, $22,240 of it in operating revenue ($93,443 and $90,327 respectively for the entire fiscal year '06.) Operating expenses were only $14,819 for 3Q '07, even though they were $362,080 for the first three quarters of FY '07. 3Q '06 expenses were $44,750, and expenses for the entire FY '06 were $152,439. $287,000 of those operating expenses were for stock-based compensation. The shrinkage in expenses was due to: a $31,303 shrink in selling, general and administrative expenses; the elimination of interest payments, which totaled $21,537 in 3Q '06; and, the elimination of amortization expense, which was $1,149 in 3Q '06.
The accompanying Management Discussion and Analysis [PDF file] explains that the operating revenue came from a network of pay-per-use Internet terminals, which Magnate got rid of in 2006. It also notes that the interest income received was worked into a $4,199 reduction of the selling, general and administrative expenses, which explains the diminishment in that item during 3Q '07. Magnate closed on Wednesday at 21 cents/share, down 1.5 cents/share from Tuesday's close. The financials and M D & A were disseminated after the close of trading.
There was no revenue for the third quarter of FY 2007, nor any for FY '07 so far. For 3Q FY '06, there was $24,058 in revenue, $22,240 of it in operating revenue ($93,443 and $90,327 respectively for the entire fiscal year '06.) Operating expenses were only $14,819 for 3Q '07, even though they were $362,080 for the first three quarters of FY '07. 3Q '06 expenses were $44,750, and expenses for the entire FY '06 were $152,439. $287,000 of those operating expenses were for stock-based compensation. The shrinkage in expenses was due to: a $31,303 shrink in selling, general and administrative expenses; the elimination of interest payments, which totaled $21,537 in 3Q '06; and, the elimination of amortization expense, which was $1,149 in 3Q '06.
The accompanying Management Discussion and Analysis [PDF file] explains that the operating revenue came from a network of pay-per-use Internet terminals, which Magnate got rid of in 2006. It also notes that the interest income received was worked into a $4,199 reduction of the selling, general and administrative expenses, which explains the diminishment in that item during 3Q '07. Magnate closed on Wednesday at 21 cents/share, down 1.5 cents/share from Tuesday's close. The financials and M D & A were disseminated after the close of trading.
Tuesday, October 16, 2007
Bi-Optic Ventures Inc. Files Interim, Unaudited Statement With SEDAR
Bi-Optic Ventures Inc. [NEX: BOV.H] has filed its interim unaudited financial statements for the second quarter of fiscal year 2007, which ended August 31st [PDF file]. As of that time, Bi-Optic had $14,494 in cash, as compared with nil at the end of FY 2006 on Feb. 28, 2007. Despite that increase in cash, the company's working-capital deficit widened to $198,316 from $60,429 at the end of FY '06. The two items in the current liabilities account that caused this widening were a $70,409 increase in loans payable, due to two new loans, and a $133,832 increase in amounts due to related parties. Book value decreased to -1.76 cents/share from -0.462 cents/share.
Bi-Optic has had no revenue to speak of since at least the beginning of FY '06. Net loss for the second quarter of '07 narrowed slightly from the loss for 2Q '06, despite: a $11,512 increase in consulting and management fees; a $5,821 increase in office, rent and telephone expenses; a $1,503 increase in amortization expense; and, a $529 increase in investor and public relations expenses from the latter quarter to the former. These rises were more than compensated for by declines of $8,147 in professional fees, $2,290 in transfer agent and regulatory fees, and $16,080 in travel and promotion expenses. This made for a 2Q '07 loss of $64,587, or 0.645 cents/share, as compared with a 2Q '06 loss of $71,849, or 0.718 cents/share. The loss for the first half of FY '07 dropped 32.5% in per-share terms, from -1.93 cents/share to -1.30 cents/share. The loans-payable increase noted above explains where the cash increase came from: had it not been for that $70,409 infusion, cash would have decreased by $57,093 in 2Q '07. According to Note 6, that infusion is composed of two loans, of $60,000 and $10,409, from the same unrelated third party. Both of them bear interest at 1.5% per month and are payable on demand. The amounts due to related parties are unsecured, interest-free and have no fixed repayment terms.
The accompanying Management Discussion and Analysis [PDF file] says that the company is currently looking for acquisitions. It also notes an agreement made between Bi-Optic and Pacific Bio-Pharmaceuticals, Inc. (along with PRB Pharmaceuticals, Inc.) to acquire all of Pacific's shares in exchange for, at most, 20,000,000 shares of Bi-Optic and 2,500,000 warrants with as-yet-unspecified terms. Bi-Optic has also secured Global Maxfin Capital Inc. as sponsor for the deal and as broker for a planned private placement of up to 4 million common shares of Bi-Optic (plus warrants with exercise price of 65 cents/share and life of 1 year) at a planned price of 50 cents/share for gross proceeds of up to $2,000,000. This planned takeover, which would involve a change to the taken-over company's name, is evidently preparation for a move to Tier 2 of the Venture Exchange. Also disclosed in the M D & A, as well as in note 6 of the financials, is an added codicil in those two loans mentioned at the end of the above paragraph: if the Pacific acquisition goes through, then Bi-Optic must issue 28,000 common shares to the lender.
Trading in BOV.H has been halted since August 2, 2006. Its last close, made on that day, was at 42 cents/share.
Bi-Optic has had no revenue to speak of since at least the beginning of FY '06. Net loss for the second quarter of '07 narrowed slightly from the loss for 2Q '06, despite: a $11,512 increase in consulting and management fees; a $5,821 increase in office, rent and telephone expenses; a $1,503 increase in amortization expense; and, a $529 increase in investor and public relations expenses from the latter quarter to the former. These rises were more than compensated for by declines of $8,147 in professional fees, $2,290 in transfer agent and regulatory fees, and $16,080 in travel and promotion expenses. This made for a 2Q '07 loss of $64,587, or 0.645 cents/share, as compared with a 2Q '06 loss of $71,849, or 0.718 cents/share. The loss for the first half of FY '07 dropped 32.5% in per-share terms, from -1.93 cents/share to -1.30 cents/share. The loans-payable increase noted above explains where the cash increase came from: had it not been for that $70,409 infusion, cash would have decreased by $57,093 in 2Q '07. According to Note 6, that infusion is composed of two loans, of $60,000 and $10,409, from the same unrelated third party. Both of them bear interest at 1.5% per month and are payable on demand. The amounts due to related parties are unsecured, interest-free and have no fixed repayment terms.
The accompanying Management Discussion and Analysis [PDF file] says that the company is currently looking for acquisitions. It also notes an agreement made between Bi-Optic and Pacific Bio-Pharmaceuticals, Inc. (along with PRB Pharmaceuticals, Inc.) to acquire all of Pacific's shares in exchange for, at most, 20,000,000 shares of Bi-Optic and 2,500,000 warrants with as-yet-unspecified terms. Bi-Optic has also secured Global Maxfin Capital Inc. as sponsor for the deal and as broker for a planned private placement of up to 4 million common shares of Bi-Optic (plus warrants with exercise price of 65 cents/share and life of 1 year) at a planned price of 50 cents/share for gross proceeds of up to $2,000,000. This planned takeover, which would involve a change to the taken-over company's name, is evidently preparation for a move to Tier 2 of the Venture Exchange. Also disclosed in the M D & A, as well as in note 6 of the financials, is an added codicil in those two loans mentioned at the end of the above paragraph: if the Pacific acquisition goes through, then Bi-Optic must issue 28,000 common shares to the lender.
Trading in BOV.H has been halted since August 2, 2006. Its last close, made on that day, was at 42 cents/share.
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