10KSB: AMERIRESOURCE TECHNOLOGIES INC
4/14/2003 2:55:41 PM
(EDGAR Online via COMTEX) -- ITEM 6. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION
Forward-looking Information
This information statement contains forward-looking statements. For this purpose, any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements. These statements relate to future events or to our future financial performance. In some cases, you can identify forward-looking statements by terminology such as "may," "will," "should," "expects," "plans," "anticipates," "believes," "estimates," "predicts," "potential" or "continue" or the negative of such terms or other comparable terminology. These statements are only predictions. Actual events or results may differ materially. There are a number of factors that could cause our actual results to differ materially from those indicated by such forward-looking statements.
Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee future results, levels of activity, performance, or achievements. Moreover, the Company does not assume responsibility for the accuracy and completeness of such forward-looking statements. The Company is under no duty to update any of the forward-looking statements after the date of this information statement to conform such statements to actual results. The foregoing management's discussion and analysis should be read in conjunction with the Company's financial statements and the notes herein.
The Company's operations for 2002 were primarily effected through two (2) wholly owned subsidiaries, Jim Butler Performance and West Texas Real Estate and Resources, Inc. Notwithstanding these two (2) wholly owned subsidiaries, the Company continues to pursue other viable business entities that are interested in either going public or becoming an operating subsidiary of a public company.
Revenues for the fiscal year ended December 31, 2002 increased to $1,152,481 from $364,467 in revenues for 2001. Our operating loss decreased to $744,435 as compared to $1,403,963 in 2001 as a result of a decrease in legal and professional expense from $104,794 for the year ended December 2001, to $60,000 for 2002, and a decrease in consulting expenses from $432,976 for the year ended December 31, 2001 to $233,932 in 2002. Our operating loss is also attributable to a decrease in salaries and bonuses of $245,033 for the year ended December 31, 2002 as compared to $618,966 for 2001.
The Company's net profit increased dramatically to $491,857 from a net
loss of $2,182,512 in 2001. This increase in net loss resulted almost entirely from a gain on the write down of a related party note in the amount of $1,323,083. This was a one time, non-recurring extraordinary expense which was incurred by the Company when it declared a stock purchase agreement concerning its subsidiary, The Travel Agent's Hotel Guide, Inc., null and void. As a result, convertible debentures in the amount of $3,350,000 issued under the stock purchase agreement were also declared null and void and written off to other income.
The Company's current assets as of December 31, 2002 were $359,013. The majority of this amount is in inventory of $149,794. Other assets include oil and gas properties in the amount of $1,700,000 which represent rights of certain leased oil rights that have a value exceeding $10,000,000 but have been written down to the value of the note receivable related to the transaction.
For the year ended December 31, 2002, the Company's accounts payable were $71,465, it had notes payable to related parties in the amount of $758,007 and accrued interest totaling $360,583.
The Company plans to decrease its liabilities by acquiring additional income producing assets in exchange for its securities, and by attempting to settle certain of its note payables with equity. The Company hopes to continue to improve its shareholder equity by acquiring income- producing assets, which are hoped to generate profits.
Going Concern
The Company has relied upon its chief executive officer, Delmar Janovec, for its capital requirements and liquidity. The Company will continue to seek alternate sources of financing to allow the Company to acquire other operating entities which may improve the Company's weak liquidity and capital resources. Additionally, the Company may continue to use its equity and the resources of its chief executive officer to finance its operations. However, no assurances can be provided that the Company will be successful in acquiring assets, whether revenue-producing or otherwise, or that Mr. Janovec will continue to assist in financing the Company's operations. |
