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Non-Tech : US Global Nanospace (USGA) -- Ignore unavailable to you. Want to Upgrade?

To: scion who wrote (76)	2/24/2004 10:33:49 AM
From: scion	Read Replies (1) \| Respond to of 132

NOTE 3. MANAGEMENT PLANS The Company is a development stage enterprise as defined under Statement of Financial Accounting Standards No. 7. The Company is a nanotechnology company that specializes in identifying, developing, and commercializing advanced products the core technologies of which are primarily nanoscience derived. These products include complex polymer materials, polymer nanofiber materials, nanofiber filter materials, biological and chemical decontaminants, blast mitigation materials and nano and micro sound generating devices for breach barriers and non-lethal weapon applications. The Company is focusing its efforts on developing a broad range of defense and law enforcement applications for the materials it creates. Currently, most of the Company's products are being developed for use by the military and homeland security. Upon the completion of the development of such products, the Company intends to market and sell to the aerospace and defense industries. Operating revenues have been generated in the amount of $127,831 for the nine months ended December 31, 2003. F-5 10QSB 9th Page of 20 TOC 1st Previous Next Bottom Just 9th US Global Nanospace, Inc. (Formerly US Global Aerospace, Inc.) (A development stage company) Notes to the Financial Statements (Continued) NOTE 3. MANAGEMENT PLANS (CONTINUED) In fiscal 2003, the Company obtained loans from a bank for amounts up to $1,650,000. In addition, the Company has received $1,675,425 in loans since inception from third parties, existing shareholders and directors. At this time, to conserve cash, the Company does not manufacture its products nor does it maintain a sales force. These functions are outsourced. In addition, officers of the Company and certain employees have been deferring their salaries or accepting shares of the Company's common stock in lieu of cash. The Company has applied for grants from various government agencies that, if approved, will provide funding for the development of new products and for the enhancement of our current products. The Company is also negotiating with various government agencies and private companies for the sale of its products. During the next 12 months, if the Company cannot generate sufficient funds to operate its business from grants and product sales, it will be required to seek financing from its largest stockholder, who has provided financing and a loan guarantee for the Company in the past. The stockholder is under no obligation to provide such funds. The Company may also consider selling debt or equity securities. There is no guarantee that the Company will obtain funds sufficient to continue its operations during the next 12 months. NOTE 4. INVENTORIES Inventories consist of finished goods and are stated at the lower of cost or market. Cost is determined using a first-in, first-out method