I found one last night. Maybe not an oil and gas play but still pretty interesting. It had news yesterday so you guys might have mentioned it in Live. There was no date to put it on the list in what I read so far but here's some DD anyway, as a start, with some positive and negative:
PHLO CORP, symbol PHLC.ob
From the last 10Q, filed Feb 20:
freeedgar.com
The number of shares outstanding of the issuer's common stock, as of
February 15, 2001 is 31,048,149.
TOTAL ASSETS $337,681
TOTAL LIABILITIES 3,507,467
TOTAL STOCKHOLDERS' DEFICIENCY (3,169,786)
So book value $-0.10. Keep reading, it gets better.
CONSOLIDATED STATEMENT OF OPERATIONS [Unaudited]
For the Three Months and Nine Months Ended December 31, 2000, and 1999
--------------------------------------------------------------------------------
Three Months Nine Months
2000 1999 2000 1999
------------ ------------ ------------ ------------
SALES $ 78,131 $ 490,477 $ 356,548 $ 1,279,856
COST OF SALES 48,135 367,106 265,573 923,061
------------ ------------ ------------ ------------
GROSS PROFIT 29,996 123,371 90,975 356,795
SELLING, GENERAL, ADMINISTRATIVE
EXPENSES 625,693 347,563 2,236,713 1,746,275
------------ ------------ ------------ ------------
OPERATING LOSS (595,697) (224,192) (2,145,738) (1,389,480)
------------ ------------ ------------ ------------
OTHER EXPENSES
Interest expense (103,861) (36,500) (269,424) (104,185)
------------ ------------ ------------ ------------
TOTAL OTHER EXPENSE (103,861) (36,500) (269,424) (104,185)
------------ ------------ ------------ ------------
LOSS before Extraordinary
Item $ (699,558) $ (260,692) $ (2,415,162) $ (1,493,665)
Extraordinary Item - Gain on the
Disposition of the net liabilities
Of a dissolved business $ 3,950,981 $ $ 3,950,981 $ 0
------------ ------------ ------------ ------------
NET INCOME (LOSS) $ 3,251,423 $ (260,692) $ 1,535,819 $ (1,493,665)
============ ============ ============ ============
Fine, they're making money, but that's with that Gain on the Disposition of the net liabilities Of a dissolved business. It's explained further down, and why they may turn much better
NOTE 1 - Company Activities
Phlo Corporation, and its subsidiaries (hereinafter collectively referred to as
the "Company") is a manufacturer of beverages containing patented and
patent-pending biotechnologies. The Company sells its beverages to distributors,
who offer the beverages for sale in high volume chain stores, such as
supermarkets, and in small retail outlets, such as delicatessens and convenience
stores. The Company is positioned as a biotechnology company which is using the
high volume distribution segment of the beverage industry to commercialize a
portion of its technology. Central to the Company's strategic development plan
is the development, acquisition and/or exclusive licensing of proprietary
technology, nutraceutical, biotechnological and/or pharmaceutical in nature,
which the Company initialy plans to convey to consumers through the use of
beverage systems. The Company is focusing its technology acquisition efforts on
those technologies related to preventing or ameliorating cancer, reducing the
effects of aging, assisting in weight loss, and enhancing sexual performance.
The Company's current beverage line has been sold under the McCoy's name and
includes ice teas, green teas, lemonade and fruit drinks. In October 2000, the
Company introduced its newest line of beverages, "ZO - Vital Cell Defense",
featuring its proprietary (patent-pending) composition with controlled-release
capability which is designed to protect cells from the oxidative stress of aging
and to stimulate cell repair. The launch of the Vital Cell Defense line marks
the successful commercialization of one of the Company's biotechnologies.
In July, 1999, the Company incorporated Phlo Beverage Products Company, a wholly
owned subsidiary, to conduct the business of producing and selling McCoy's
beverages. In August,1999, the Company incorporated Phlo System, Inc., a wholly
owned subsidiary. In October, 2000, Advanced Bio-Delivery, LLC., a limited
liability company formed in June, 2000, became a wholly-owned company of the
Company. Hereafter, the Company will conduct its biotechnology-related
activities through Phlo System, Inc. and Advanced Bio-Delivery, LLC. In November
2000, X-Treem, a former subsidiary was formally dissolved. As a result, the
Company's assets, liabilities and stockholders' deficiency no longer reflect
those of X-Treem. The effect was to reduce liabilities by approximately
$4,211,000, decrease the Company's Stockholders' Deficiency by approximately
$3,951,000, and reduce assets by approximately $260,000. See NOTE 3.
Here's that Gain. Also explained at note 3:
NOTE 3 - Disolutionment of Subsidiary:
On November 13, 2000, X-Treem (their subsidiary)was formally dissolved in accordance with the
General Corporation Law of the State of Delaware. For approximately two
years prior thereto X-Treem had been inactive and had no revenues. As a
result of the disolutionment, the Company's assets, liabilities and
stockholders' deficiency no longer reflect those of X-Treem. The effect was
to reduce the Company's liabilities by approximately $4,211,000, reduce the
Stockholders'Deficiency by approximately $3,951,000, and reduce the assets
by approximately $260,000.
NOTE 4 - Going Concern
As shown in the accompanying financial statements, although the Company
incurred a net income of $1,535,819 during the nine months ended December
31, 2000, the Company's current liabilities exceeded its current assets by
$3,261,227 and its total liabilities exceeded its total assets by
$3,169,786. In addition the Company is delinquent in connection with
various obligations including, trade payables, accrued payroll taxes, and
notes payable. These factors and uncertain conditions that the Company has
faced in its day-to-day operations have created an uncertainty as to the
Company's ability to continue as a going concern. The financial statements
do not include any adjustments that might be necessary if the Company is
unable to continue as a going concern. The continuation of the Company as a
going concern is dependent upon the success of future financing and
generating sufficient revenue through the expansion of its beverage product
lines.
With respect to those factors cited above, including the uncertain
conditions, management has taken action and is formulating additional plans
intended to remove the going concern uncertainty. Specifically, as more
fully described in NOTE 3 - Disolutionment of Subsidiary, in November 2000,
X-Treem was formally dissolved. As a result, the Company's assets,
liabilities and stockholders' deficiency no longer reflect those of
X-Treem. The effect is to reduce the excess amount by which current
liabilities exceeds current assets and the amount by which total
liabilities exceed total assets by approximately $3,951,000. With respect
to sales and operations, as a result of the Company's newest beverage line,
"Zo - Vital Cell Defense", which was introduced in October 2000, the
Company was successful in materially expanding its distribution base by
signing a distribution agreement with one of the largest independent
Coca-Cola bottling and distribution companies in the world. The Company
expects the demand for its products to grow rapidly and anticipates
achieving profitability during an upcoming quarter. In addition these
events contributed to the Company executing a definitive agreement
providing for at least $1,400,000 of production financing. The Company
plans to raise additional funds to meet demands for its products and
satisfy existing obligations. No assurance can be made that the management
will be successful in achieving its plan.
RESULTS OF OPERATIONS
The Company had a net income of $1,535,819 for the nine months ended December
31, 2000 as compared to a net loss of $1,493,665 for the nine months ended
December 31, 1999. The decrease in net loss is the result of the gain on the
disposition of the net liabilities of a dissolved business of $3,950,981. For
the same periods, sales decreased from $1,279,856 to $356,548.
The decrease in sales resulted from the discontinuance of all of the fruit
beverages and lemonades of the McCoy's line of beverages in preparation for the
substitution thereof by the "ZO-Vital Cell Defense" beverage line and the
Company's decision to change its packaging from 20 ounce to 16 ounce bottles
(which required significant changes to labels etc.). In conjunction therewith,
the existing finished goods inventory was depleted to levels insufficient to
satisfy a significant portion of the orders from the Company's distributors. The
change to 16 ounce bottles is the result of the Company's desire to achieve
greater margins more consistent with the patented nature of its beverage
products and the result of the request of certain of its major new distributors.
ZO was first produced in October, 2000, and sales immediately followed. However,
as the new 16 ounce bottle will not be available from the Company's supplier
until the end of February, 2001, the initial demand for ZO had to be met using
20 ounce bottles, of which there was very little inventory. The Company has not
been able to meet the significant demand for ZO, but expects to be able to meet
such demand with the planned production of approximately 200,000 cases of its
beverages in March, 2001 using the new 16 ounce packaging.
The launch of the Vital Cell Defense line of beverages marks the successful
commercialization of one of the Company's biotechnologies and is expected to
lead to significantly higher future sales. The Company currently has open
(unfilled) purchase orders providing for the shipment of approximately 100,000
cases of beverages representing gross revenues of $750,000. In December, the
Company signed a distribution agreement with one of the largest independent
Coca-Cola bottling and distribution companies in the world, Hondo, Inc. and its
affiliates.
Which brings us to the news released on April 10:
biz.yahoo.com
Phlo Corporation Commences Shipments to Fill
Backlog
Projects Profitable Fiscal Year 2001
NEW YORK, April 10 /PRNewswire/ -- Phlo Corporation (OTC Bulletin Board: PHLC -
news; ``Phlo'') announced today that it has begun shipping approximately 200,000 cases of
Phlo's flagship ZO - Vital Cell Defense and McCoy's beverage products from its co-packing
facility in Carteret, New Jersey to satisfy a current backlog of approximately $1.8 million.
This backlog consists of purchase orders from Phlo's major distributors such as the
Coca-Cola Bottling Company of Chicago, Inc. (including its affiliates), Haddon House, and
Atlantic Beverages. Phlo plans to produce another 200,000 cases of its beverages at the end
of April to fill orders from its distributors for the following 30 day period.
``This is a pivotal time in the Company's development as we believe that the filling of such
orders and the meeting of the demand from our existing distributors for the ensuing 12
months should allow the Company to be profitable for every quarter during the next 12
month period and to show a material profit for our fiscal year 2001,'' James B. Hovis,
President and CEO of Phlo, said today. ``The Company's operating results for its first fiscal
quarter of 2001 should generate a substantial balance sheet capable of supporting traditional
asset-based lending for production financing in the future.''
Phlo's ZO - Vital Cell Defense beverages contain Phlo's patent-pending payload, Vitamin E
phosphate/phosphatidylcholine, which is protected through the stomach
(micro-encapsulated) and time-released. This technology has been shown through in vitro
and in vivo tests to be effective in protecting cells from the effects of aging and exposure to
toxins. Further, the patent-pending payload has been shown to be effective in stimulating the
membrane repair function of cells, particularly of the liver, heart, and brain.
Phlo's distributors currently sell to an account base of approximately 100,000 accounts,
encompassing territories including eastern New York, New Jersey, Pennsylvania, Delaware,
Maryland, Virginia, North Carolina, South Carolina, and Florida, and reaching westward to
Illinois, Indiana, Wisconsin, Ohio, western Pennsylvania, and western New York (including
the major metropolitan areas of Chicago, IL, Milwaukee, WI, Indianapolis, IN, and
Rochester, NY).
Phlo is a manufacturer of beverages containing patented and patent-pending biotechnologies. Phlo's ZO - Vital Cell Defense
line of beverages is available in ten flavors including Orange Carrot, Cranberry Berry, Tropical Punch, Pink Lemonade, Kiwi
Strawberry, Raspberry Vanilla, Blackberry Cherry, Lemon Iced Tea, Peach Iced Tea, and Raspberry Iced Tea. Phlo's
McCoy's Green Tea beverage line, available in five different flavors, is the first and only new age beverage that delivers a truly
functional level (250 mg) of powerful green tea catechins, including the super anti-oxidant EGCg. Studies show that a high daily
intake of EGCg aids in the protection against cancer and cardiovascular disease. McCoy's Green Teas also feature Vitamin C
and Siberian ginseng for sustained energy and concentration. Phlo is based in New York City at 475 Park Avenue South,
Seventh Floor, New York, New York 10016. For more information, contact Michael J. Sclafani, Wall Street Communications
Group, Inc., 303-541-0970, sclafani@uswest.net.
And then news yesterday:
biz.yahoo.com
Phlo Corporation Signs Full-Service Investment
Banking Deal
Generates Net Income in April on Record Revenues
NEW YORK, June 21 /PRNewswire/ -- Phlo Corporation (OTC Bulletin Board: PHLC -
news; ``Phlo'') announced today that it has signed a full-service investment banking
agreement with Sands Brothers & Co., Ltd., headquartered in New York with offices in San
Francisco, London and Toronto. Sands Brothers will provide a full range of investment
banking and financial advisory services to Phlo, including the immediate private placement of
up to $5 million of its securities. The funds to be generated from the private placement will be
used to produce sufficient finished goods inventory to fill the demand of Phlo's existing
distributors, to further expand distribution, to increase marketing support for its products,
and to continue the commercialization of biotechnologies acquired by Phlo.
Phlo also announced today that it generated net income of approximately $156,000 from
record revenue of approximately $1,100,000 in April 2001. This substantial increase in
revenue was due to an increase in sales of its beverage products (including its ZO - Vital Cell
Defense beverages) to all of its distributors, including initial sales of its products to
Coca-Cola Bottling of Chicago and all of its affiliates.
``We are delighted to have Sands Brothers join our team,'' James B. Hovis, President and
CEO of Phlo, said today. ``This alliance will assist Phlo in accomplishing its basic corporate
strategy which focuses on meeting the major perceived health-related needs of consumers. It
is our goal to meet these needs through the use of liquid formulations and beverages
containing effective micro-particle delivery systems as the most effective and
consumer-friendly method of conveying such health-related benefits. We believe that
accomplishing this goal with patented or patent-pending payloads in effective delivery
systems (protecting actives from destruction in the stomach and including sustained-release
capabilities) raises a high bar to competition.''
Sands Brothers & Co., Ltd. is a NYSE member firm specializing in investment banking and
securities brokerage. It provides a full range of investment services to public and private corporations, institutional money
managers, and high net worth individuals. In addition to over 250 account executives, Sands Brothers' staff includes research
professionals, corporate finance professionals, an institutional sales group, as well as syndicate and trading departments.
Phlo's ZO - Vital Cell Defense beverages contain Phlo's patent-pending payload, Vitamin E phosphate/phosphatidylcholine,
which is protected through the stomach (micro-encapsulated) and time-released. This technology has been shown through in
vitro and in vivo tests to be effective in protecting cells from the effects of aging and exposure to toxins. Further, the
patent-pending payload has been shown to be effective in stimulating the membrane repair function of cells, particularly of the
liver, heart, and brain.
Phlo's distributors currently sell to an account base of approximately 100,000 accounts, encompassing territories including
eastern New York, New Jersey, Pennsylvania, Delaware, Maryland, Virginia, North Carolina, South Carolina, and Florida,
and reaching westward to Illinois, Indiana, Wisconsin, Ohio, western Pennsylvania, and western New York (including the
major metropolitan areas of Chicago, IL, Milwaukee, WI, Indianapolis, IN, and Rochester, NY).
Phlo is a manufacturer of beverages…..
Besides that, here's a couple of things to keep in mind:
1) That last filing was for 3rd quarter, so the FYE was on March 31. They have until end of June to submit the 10K but it may be late. Last year they filed almost 2 months later. It will show the revs for the months of Jan, Feb and March but not that spectacular April and perhaps May and June. They got their E removed at that time, of course.
13:19 08/22/2000 PHLCE** PHLC PHLO Corp
2) Insiders selling:
biz.yahoo.com
3) This at note 9 from the last 10Q, since they've had troubles paying their debts:
Note payable with interest at a rate of 14% per annum. The
Note matured on December 31, 1999, when principal and unpaid
interest was due. The holder has obtained a summary judgment
against the Company. The Company believes that the holder
engaged in intentional conduct which resulted in damage to
the Company and has filed an action against the holder in
federal court which is currently pending. In connection with
the note, the Company issued warrants to the holder and
another individual to purchase an aggregate of 500,000
shares of common stock at an exercise price of $0.20 per
share upon issuance of the note and warrants to the holder
to purchase an aggregate of 200,000 shares of the common
stock in connection with its option to extend the maturity
date of the note to December 31, 1999. In addition, to
secure repayment of the note, the Company issued to a
trustee of the holder 105,875 shares of common stock and
11,441 shares of Series C Convertible Preferred Stock.
But they also say this in note 10:
Litigation
The Company is involved in litigation through the normal course of
business. The Company believes that the resolution of these matters will
not have a material adverse effect on the financial position of the
Company.
4) A couple of posts from RB, fwiw:
ragingbull.lycos.com
ragingbull.lycos.com
ragingbull.lycos.com
ragingbull.lycos.com
ragingbull.lycos.com
Do your own DD on PHLC. It could pop on some volume in my opinion. Company is unknown. Best of luck,
-CyberJas |
