MOBL Q out.More losses.Is the Subway on this stock lately as promo?If it is ahhhhhhhhh again.
Overall Operating Results:
We had no revenues for the quarter ended December 31, 2003.
Our operating expenses for the three months ended December 31, 2003 were $573,000, a $401,231 increase when compared to $171,769 for the three months ended December 31, 2002.
Our net operating loss for the three-month period ended December 31, 2003 was $637,053, a $464,062 increase when compared to $172,991 for the three months ended December 31, 2002.
For the nine months ended December 31, 2003 total operating expenses were $1,210,809. This compares with $2.171 million for the nine-month period ended December 31, 2002. Our primary expense for the three months and nine-month periods ended December 31, 2003 was for Professional fees and compensation expenses of $458,784 and $965,306 respectively. This compares to $157,547 and $2.028 million for the three and nine-month periods ended December 31, 2002. Of this amount, common stock issuances valuing $76,444 and $690,606 for the nine months ended December 31, 2003 and 2002, respectively, in lieu of cash were issued in connection with consulting fees and expenses for services rendered.
As of December 31, 2003 the Company had $742,861 in cash compared to $1,453 as of December 31, 2002. The cash is a result of an equity line arrangement with Cornell Capital Partners, dated February 6, 2003. As of December 31, 2003, accounts payable and accrued liabilities were reduced by $590,074 through management's ongoing negotiation with the Company's vendors. Of this amount $374,616 is included in equity as a direct result of the settlements.
Operating Losses
Our net operating loss for the three-month period ended December 31, 2003 was $637,053, a $464,062 increase when compared to $172,991 for the three months ended December 31, 2002.
The loss for the nine-month period
ended December 31, 2003 was $1,431,341 compared to $2,220,189 as of December 31, 2002. These losses were incurred primarily as a result of the aforementioned incurred expenses.
As of December 31, 2003 the Company has accumulated $15,110,325 in operating losses that may, on a limited basis, be offset against future taxable income. There are limitations on the amount of net operating loss carryforwards that can be used due to the change in the control of the management of the Company. No tax benefit has been reported in the financial statements, because as of December 31, 2003, we believe there is a 50% or greater chance the carryforwards will expire unused. Accordingly, the potential tax benefits of the loss carryforwards is offset by a valuation allowance of the same amount.
Liquidity and Capital Resources:
As of December 31, 2003, we had a total Stockholders' Deficit of $1.320 million compared to $2.110 million as of March 31, 2003. As of December 31, 2003, the Company did not have any revenues, liquidity or capital resources as we move forward with our business plan and our independent auditors have issued an audit opinion as of March 31, 2003 that raises substantial doubt as to our ability to continue as a going concern. We will need additional financing in order to implement our business plan and continue business. The traditional markets for raising capital have become more difficult in the last two years due to a depressed demand for early-stage equity investments and large well-known business failures.
The Company will need additional financing and may use a private placement offering or debt financing to raise such additional funds, to be used for the following:
• Acquisitions of one or more companies
• Pay-down certain debt, such as a convertible debenture from Cornell Capital. |
