Their most current 10Q reveals that nothing has changed. They are unable to operate a company profitably, but know how to sell stock. Some main points from the Q:
As reflected in the accompanying consolidated financial statements, the Company
incurred net losses since inception of $6,278,557, has cash used in operations
of $196,061 for the six months ended June 30, 2003, has a working capital
deficiency of $1,672,084 at June 30, 2003, is in default on notes payable due to
non-payment, and has unpaid payroll taxes. The ability of the Company to
continue as a going concern is dependent on achieving profitable operations and
obtaining additional equity and/or debt financing. Management's plans include
finding additional revenue sources and the seeking of merger candidates. The
Company also needs financing to complete its plans and will pursue obtaining
funding through private placements of debt or equity offerings. There can be no
assurance that the Company's efforts will be successful. The consolidated
financial statements do not include any adjustments that might be necessary if
the Company is unable to continue as a going concern.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS (continued)
On May 23, 2002, the Company acquired certain assets and liabilities of Silver
Star Management, Inc., a Florida corporation ("SSM") in exchange for 7,000,000
shares of the Company's common stock and a note payable of $50,000. SSM is an
automobile engineering and small parts manufacturing company. Such shares are
recorded as issuable as SSM has not yet met certain contractual obligations.
We have no other material commitments for capital expenditures. We do not
believe that we have sufficient liquidity to meet all of our cash requirements
for the next twelve months, however, through cost reductions and increased
marketing efforts together with additional proceeds from common stock sales we
believe we will offset a portion of our cash flow shortfall. A key element of
our strategy is to evaluate opportunities to expand through acquisition of
companies engaged in similar and related complementary businesses. Any
additional acquisitions may require additional capital, although there can be no
assurances that any acquisitions will be completed. Also, we believe that
additional funding will be necessary to expand our market share.
Item 3. Defaults Upon Senior Securities
We are currently in default on our notes payable with a financial institution
and other entities. |
