10Q for third quarter '06 is out.
sec.gov
As of October 15, 2006, 415,202,850 shares of $.001 par value common stock were outstanding.
I thought it would be 440M by now, 415M is a nicer number.
KSI Machine and Engineering Inc.
On September 14, 2004, the Company executed a letter of intent with KS1 Machine and Engineering, Inc. (hereinafter "KSI") to acquire all of KSI's outstanding stock. KSI is a manufacturer of automotive die and mold castings which use horizontal spindle 5 axis computer numerical controlled machines. During the year ended November 30, 2004, the Company paid a deposit of $50,000 for this agreement. On December 7, 2004, the Company paid an additional $100,000 and signed a purchase agreement with KSI. On October 6, 2005, the Company paid an additional $30,000 for this agreement. On November 7, 2005, the Company paid an additional $20,000 for this agreement. As of the date of herein, this acquisition has not been completed. The Board of Directors of the Company entered into a licensing agreement with KSI for the use of AmeriChip's patented Laser Assisted Chip Control technology. KSI and AmeriChip are also negotiating a joint venture relationship, from which AmeriChip will generate revenues from the application of its proprietary technology in a Tier One environment. The Company intends to continue pursuing this acquisition.
Recently, a commitment letter was received from Peoples State Bank (the “Bank”) in order to provide partial funding related to the financing of KSI's equipment. The Bank agreed to provide a loan in the amount $1,600,000 for the acquisition and financing of KSI's equipment, subject to approval for an additional loan in the amount of $1,280,000 from the Small Business Administration (SBA). As of the date herein, the SBA approval of this additional loan is still pending.
While we are in the process of finalizing our relationship with KSI Machine and Engineering, we are now in a position to implement our technology. We anticipate that the operations of KSI Machine and Engineering will bring to the consolidated balance sheet of AmeriChip annual revenues of approximately $3,400,000 based on revenues generated in 2005.
Whoever was floating the rumor that KSI would add $0.025/share to the bottom line, please take note of the KSI annual revenue figure of ~$3.4M. Revenues added will be less than $0.01/share, and who knows if KSI is even profitable. |
