3Q/September Financials Out and Volume Improving
Three Months Ended September 30, 1998 versus September 30, 1997:
The Company continues to operate its TV Station with revenues
for the three months ended September 30, 1998 (Current Period)
of $24,475, compared to the three months ended September 30,
1997 (Prior Period) of $136,049, a decrease of $111,574, or
456%. Revenues from the television segment have decreased
significantly, comparatively speaking, due to key employee
turnover. Management's focus is on the television segment and
sales from the programming library, which it expects to increase
over the next six months.
The Company's general and administrative costs decreased from
$179,412 for the prior period compared to $84,900 for the
current period, for a net decrease of $94,512, or 53%. The
decrease is due principally to write-offs of uncollectible
accounts receivable of approximately $82,000 in the prior
period. The Company experienced a net loss of $2,989,507 for
the prior period compared to a net loss of the current period of
$259,254, or an increase of $2,730,253. The majority of the
loss is attributable to the write-off of the Company's
investment in joint venture of $2,000,000. A reversal of the
gain recognized in the first quarter of the prior period was
made for $931,962 because the Company wrote-off its investment
in the joint venture, which generated this gain.
Nine Months Ended September 30, 1998 versus September 30, 1997:
The Company continues to operate its TV Station with revenues
for the nine months ended September 30, 1998 (Current Period) of
$69,276, compared to the nine months ended September 30, 1997
(Prior Period) of $205,798, a decrease of $136,522, or 66%.
Management is still focusing on the television segment to
generate significant revenues.
Consulting and professional fees of the prior period of $360,725
have increased to $518,300 of the current period, for a net
increase of $157,575. Consulting and professional fees of the
prior period relate to the Company's attempt to inquire into the
possible acquisition or merger with other similar businesses in
1997, an effort the Company has primarily put an end to.
Consulting and professional fees of the current period relate to
shares issued for legal and consulting services to promote the
Company's television segment. The Company experienced a net
loss of $1,108,214 for the current period compared to the prior
period of $2,832,031, or an increase of $1,724,087. As
discussed above, the Company ended all of its joint venture
efforts, resulting in write-off of $2,000,000.
(2) Liquidity
The Company's liquidity position has improved over the quarter.
Working capital is a positive $17,105 at September 30, 1998,
compared to a negative of $40,865 at December 31, 1997. The
increase results from the Company's sale of common stock to meet
working capital needs. Total proceeds from the sale of common
stock for the three months ended September 30, 1998, was
$150,000. Cash flows has been impacted by the decrease in sales
over the periods. Management anticipates revenues to increase
and also intends to seek additional funding from private or
public equity investments to meet the increased working capital
needs, if necessary, in the next 12 months.
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