WEB NEWS Comments & Business Outlook
EFT HOLDINGS, INC.
Consolidated Statements of Operations
Year Ended
March 31, 2016
March 31, 2015
Sales revenues, net
$
379,431
$
749,852
Shipping charges
61,941
217,979
Total revenues, net
441,372
967,831
Cost of sales
219,875
315,008
Shipping costs
18,140
41,672
Total cost of revenues
238,015
356,680
Gross profit
203,357
611,151
Operating expenses:
Selling, general and administrative expenses
5,883,322
5,205,123
Provision for inventory obsolescence
25,612
130,787
Royalty expenses - related party
500,000
500,000
Total operating expenses
6,408,934
5,835,910
Operating loss
(6,205,577
)
(5,224,759
)
Other income/(expense)
Interest income
72,915
152,109
Interest expense
(50,249
)
(158,181
)
Settlement of previously accrued interest for income tax
962,991
-
Settlement of previously written-off investment
9,438,208
-
Loss on disposal of securities available for sale (includes $13,356 and $(47,263) accumulated other comprehensive income/(loss) reclassifications for unrealized net gains on securities available for sale for the year ended March 31, 2016 and 2015, respectively)
(30,404
)
(53,398
)
Dividend income
-
8,787
Foreign exchange loss
(854
)
(2,948
)
Gain on sale of long-term investment
-
2,407,038
Other income
30,652
166,576
Total other income
10,423,259
2,519,983
Income (loss) from continuing operations before income taxes
4,217,682
(2,704,776
)
Income tax expense (benefit)
(4,079,612
)
8,769
Income (loss) from continuing operations
8,297,294
(2,713,545
)
Discontinued operations
Loss from operation of Excalibur
-
(27,018
)
Loss from disposal of Excalibur
-
(2,622,906
)
Total loss from discontinued operations
-
(2,649,924
)
Net income (loss)
8,297,294
(5,363,469
)
Loss from non-controlling interest
9,138
22,367
Net income (loss) attributable to EFT Holdings, Inc.
$
8,306,432
$
(5,341,102
)
Net income (loss) per share – continuing operations
Basic and diluted
$
0.11
$
(0.04
)
Net loss per share – discontinued operations
Basic and diluted
$
-
$
(0.03
)
Net income (loss) per common share attributable to EFT
Holdings, Inc.
Basic and diluted
$
0.11
$
(0.07
)
Weighted average common shares outstanding
Basic and diluted
75,983,201
75,983,201
Comments & Business Outlook
Consolidated Statements of Operations
(Unaudited)
Three Months Ended
Six Months Ended
September 30,
September 30,
September 30,
September 30,
2015
2014
2015
2014
Sales revenues, net
$
145,398
$
118,961
$
221,714
$
348,534
Shipping charges
12,473
45,004
36,524
113,409
Total revenues, net
157,871
163,965
258,238
461,943
Cost of sales
67,841
62,182
115,909
140,531
Shipping costs
320
26,843
495
32,146
Total cost of revenues
68,161
89,025
116,404
172,677
Gross profit
89,710
74,940
141,834
289,266
Operating expenses:
Selling, general and administrative expenses
1,212,407
848,575
2,557,604
2,590,794
Provision for inventory obsolescence
-
62,255
6,409
119,231
Royalty expenses - related party
125,000
228,202
250,000
250,000
Total operating expenses
1,337,407
1,139,032
2,814,013
2,960,025
Operating loss
(1,247,697
)
(1,064,092
)
(2,672,179
)
(2,670,759
)
Other income/(expense)
Interest income
26,233
43,097
46,972
94,124
Interest expense
(506
)
(40,560
)
(43,419
)
(72,256
)
Settlement of previously accrued interest for income tax
962,991
-
962,991
-
Gain/(loss) on disposal of securities available for sale
(includes $13,463 and $(53,989) accumulated other
comprehensive income/(loss) reclassifications for
unrealized net gains on securities available for sale
for the six months ended September 30, 2015 and
2014, respectively)
(9,258
)
(72,849
)
(12,850
)
(56,677
)
Dividend income
-
4,482
-
8,787
Foreign exchange loss
(108
)
(2,339
)
(516
)
(2,534
)
Gain on sale of long-term investment
-
1,445,646
-
2,457,899
Other income
5,133
2,549
22,190
4,831
Total other income/(expense)
984,485
1,380,026
975,368
2,434,174
Income (loss) from continuing operations before income taxes
(263,212
)
315,934
(1,696,811
)
(236,585
)
Income tax expense (benefit)
(3,965,606
)
1,872
(3,965,606
)
1,872
Income (loss) from continuing operations
3,702,394
314,062
2,268,795
(238,457
)
Discontinued operations
Income (loss) from operation of Excalibur
-
(29,326
)
-
2,588
Total income (loss) from discontinued operations
-
(29,326
)
-
2,588
Net income (loss)
3,702,394
284,736
2,268,795
(235,869
)
Income from non-controlling interest
1,955
17,043
4,176
2,851
Net income (loss) attributable to EFT Holdings, Inc.
$
3,704,349
$
301,779
$
2,272,971
$
(233,018
)
Net income (loss) per share – continuing operations
Basic and diluted
$
0.05
$
0.00
$
0.03
$
(0.00
)
Net income (loss) per share – discontinued operations
Basic and diluted
$
-
$
(0.00
)
$
-
$
0.00
Net income (loss) per common share attributable to EFT
Holdings, Inc.
Basic and diluted
$
0.05
$
0.00
$
0.03
$
(0.00
)
Weighted average common shares outstanding
Basic and diluted
75,983,201
75,983,201
75,983,201
75,983,201
Management Discussion and Analysis
Sales revenues, net
Sales revenues, net increased to approximately $145,000 for the three months ended September 30, 2015 from approximately $119,000 for the three months ended September 30, 2014 primarily due to an increase in product sales demand. Sales revenues, net excludes revenue from shipping charges and reflects the deduction of commission expense. The Company’s policy is to pay commissions to Affiliates upon receipt of sales orders even before revenue can be recognized. In addition, sales orders dropped from $ 360,820 to $37,600 which caused commission expense to decrease to $23,900 for the three months ended September 30, 2015 from $195,550 for the three months ended September 30, 2014.
The Company’s revenue recognition policy is in accordance with the requirements of Staff Accounting Bulletin (“SAB”) No. 104, Revenue Recognition (“SAB 104”), ACT Topic 605, Accounting for Consideration Given by a Vendor to a Customer (Including a Reseller of the Vendor’s products) and other applicable revenue recognition guidance and interpretations. Sales revenue is recognized at the date of shipment to customers when a formal arrangement exists, the price is fixed or determinable, the delivery is completed, no other significant obligations of the Company exist and collectability is reasonable assured. Transportation income is generated form transporting passengers and cargo and is recognized at the time when passengers and cargo are conveyed to the destination port. Payments received before all of the relevant criteria for revenue recognition are satisfied are recorded as unearned revenue. Commissions paid to the Company’s affiliates are considered to be a reduction of the selling prices of its products, and are recorded as a reduction of revenue.
Comments & Business Outlook
EFT HOLDINGS, INC.
Consolidated Statements of Operations
(Unaudited)
Three Months Ended
June 30, 2015 June 30, 2014
Sales revenues, net $ 76,316 $ 229,573
Shipping charges 24,051 68,405
Total revenues, net 100,367 297,978
Cost of sales 48,068 78,349
Shipping costs 175 5,303
Total cost of revenues 48,243 83,652
Gross profit 52,124 214,326
Operating expenses:
Selling, general and administrative expenses 1,345,197 1,742,219
Provision for inventory obsolescence 6,409 56,976
Royalty expenses - related party 125,000 21,798
Total operating expenses 1,476,606 1,820,993
Operating loss (1,424,482 ) (1,606,667 )
Other income/(expense)
Interest income 20,739 51,027
Interest expense (42,913 ) (31,696 )
Gain/(loss) on disposal of securities available for sale (includes $9,060 and $8,562 accumulated other comprehensive income/(loss) reclassifications for unrealized net gains on securities available for sale for three months ended June 30, 2015 and 2014, respectively) (3,592 ) 16,172
Dividend income - 4,305
Foreign exchange loss (408 ) (195 )
Other income 17,057 29,813
Gain on sales of long-term investment - 984,722
Total other income/(expense) (9,117 ) 1,054,148
Loss from continuing operations before income taxes (1,433,599 ) (552,519 )
Income taxes - -
Loss from continuing operations (1,433,599 ) (552,519 )
Discontinued operations
Income from operation of Excalibur - 31,914
Total income from discontinued operations - 31,914
Net loss (1,433,599 ) (520,605 )
Loss (income) from non-controlling interest 2,221 (14,192 )
Net loss attributable to EFT Holdings, Inc. $ (1,431,378 ) $ (534,797 )
Net loss per share – continuing operations
Basic and diluted $ (0.02 ) $ (0.01 )
Net income per share – discontinued operations
Basic and diluted $ - $ -
Net loss per common share attributable to EFT
Holdings, Inc.
Basic and diluted $ (0.02 ) $ (0.01 )
Weighted average common shares outstanding
Basic and diluted 75,983,201 75,983,201
Management Discussion and Analysis
Sales revenues, net
Comments & Business Outlook
EFT HOLDINGS, INC.
Consolidated Statements of Operations
Year Ended
March 31, 2015
March 31, 2014
Sales revenues, net
$
749,852
$
1,487,791
Shipping charges
217,979
378,887
Total revenues, net
967,831
1,866,678
Cost of goods sold
315,008
556,875
Shipping costs
41,672
45,324
Total cost of revenues
356,680
602,199
Gross profit
611,151
1,264,479
Operating expenses:
Selling, general and administrative expenses
5,205,123
6,620,843
Provision for inventory obsolescence
130,787
888,320
Royalty expenses - related party
500,000
500,000
Total operating expenses
5,835,910
8,009,163
Operating loss
(5,224,759
)
(6,744,684
)
Other income/(expense)
Interest income
152,109
288,940
Interest expense
(158,181
)
(807,963
)
Gain/(loss) on disposal of securities available for sale
(includes $(47,263) and $135,876 accumulated other comprehensive
income/(loss) reclassifications for unrealized net gains on securities available
for sale for the years ended March 31, 2015 and 2014, respectively)
(53,398
)
51,069
Dividend income
8,787
-
Write-off and impairment of prepayment on development in progress
-
(8,966,004
)
Foreign exchange loss
(2,948
)
(110,039
)
Other income
166,576
108,988
Gain on sale of long-term investment
2,407,038
-
Total other income/(expense)
2,519,983
(9,435,009
)
Loss from continuing operations before income taxes
(2,704,776
)
(16,179,693
)
Income taxes expense
8,769
3,561,310
Loss from continuing operations
(2,713,545
)
(19,741,003
)
Discontinued operations
Loss from operation of Excalibur
(27,018
)
(600,697
)
Loss from disposal of Excalibur
(2,622,906
)
-
Total loss from discontinued operations
(2,649,924
)
(600,697
)
Net loss
(5,363,469
)
(20,341,700
)
Loss from non-controlling interest
22,367
315,530
Net loss attributable to EFT Holdings, Inc.
$
(5,341,102
)
$
(20,026,170
)
Net loss per share – continuing operations
Basic and diluted
$
(0.04
)
$
(0.25
)
Net loss per share – discontinued operations
Basic and diluted
$
(0.03
)
$
(0.01
)
Net loss per common share attributable to EFT
Holdings, Inc.
Basic and diluted
$
(0.07
)
$
(0.26
)
Weighted average common shares outstanding
Basic and diluted
75,983,201
75,983,201
Management Discussion and Analysis
Sales revenues, net of commission expense, decreased to approximately $750,000 for the year ended March 31, 2015 from approximately $1,488,000 for the year ended March 31, 2014 primarily due to a decline in sales demand from the Company’s Affiliates. The Company’s policy is to pay commissions to its Affiliates upon receipt of the sales orders even though revenue is not recognized by the Company until later when the products are delivered. In addition, sales orders dropped from $2.6 million to $1.3 million which caused the associated commission expense to decrease to approximately $799,000 for the year ended March 31, 2015 from approximately $1,506,000 for the year ended March 31, 2014.
Commissions paid to the Company’s Affiliates are considered to be a reduction of the selling prices of its products, and are recorded as a reduction of revenue.
Comments & Business Outlook
EFT HOLDINGS, INC.
(Unaudited)
Three Months Ended
Nine Months Ended
December 31,
December 31,
December 31,
December 31,
2014
2013
2014
2013
Sales revenues, net
$
263,373
$
348,096
$
611,907
$
1,280,325
Shipping charges
74,724
85,753
188,133
307,230
Total revenues, net
338,097
433,849
800,040
1,587,555
Cost of goods sold
109,013
97,639
249,544
462,328
Shipping costs
2,010
10,882
34,156
39,761
Total cost of revenues
111,023
108,521
283,700
502,089
Gross profit
227,074
325,328
516,340
1,085,466
Operating expenses:
Selling, general and administrative expenses
1,535,096
1,769,614
4,125,890
5,030,503
Provision for inventory obsolescence
32,942
293,501
152,173
398,708
Royalty expenses - related party
125,000
35,482
375,000
115,886
Total operating expenses
1,693,038
2,098,597
4,653,063
5,545,097
Operating loss
(1,465,964
)
(1,773,269
)
(4,136,723
)
(4,459,631
)
Other income/(expense)
Interest income
32,558
69,706
126,682
228,601
Interest expense
(41,795
)
(1,720
)
(114,051
)
(5,669
)
Gain/(loss) on disposal of securities available for sale
(includes $(56,824) and $74,198 accumulated other comprehensive income/(loss) reclassifications for unrealized net gains on securities available for sale for the nine months ended December 31, 2014 and 2013, respectively)
(6,155
)
(4,209
)
(62,832
)
46,408
Dividend income
-
-
8,787
-
Foreign exchange gain/(loss)
(255
)
152
(2,789
)
448
Other income/(losses)
11,797
80,674
67,489
81,982
Gain on sale of long-term investment
-
-
2,407,038
-
Total other income/(expense)
(3,850
)
144,603
2,430,324
351,770
Loss from continuing operations before income
taxes
(1,469,814
)
(1,628,666
)
(1,706,399
)
(4,107,861
)
Income taxes expense
4,177
7,741,386
6,049
7,732,653
Loss from continuing operations
(1,473,991
)
(9,370,052
)
(1,712,448
)
(11,840,514
)
Discontinued operations
Loss from operation of Excalibur
(29,606
)
(108,572
)
(27,018
)
(295,711
)
Loss from disposal of Excalibur
(2,622,906
)
-
(2,622,906
)
-
Total loss from discontinued operations
(2,652,512
)
(108,572
)
(2,649,924
)
(295,711
)
Net loss
(4,126,503
)
(9,478,624
)
(4,362,372
)
(12,136,225
)
Loss from non-controlling interest
16,981
57,413
19,832
157,188
Net loss attributable to EFT Holdings, Inc.
$
(4,109,522
)
$
(9,421,211
)
$
(4,342,540
)
$
(11,979,037
)
Net loss per share – continuing operations
Basic and diluted
$
(0.02
)
$
(0.12
)
$
(0.02
)
$
(0.16
)
Net loss per share – discontinued operations
Basic and diluted
$
(0.03
)
$
(0.00
)
$
(0.03
)
$
(0.00
)
Net loss per common share attributable to EFT
Holdings, Inc.
Basic and diluted
$
(0.05
)
$
(0.12
)
$
(0.06
)
$
(0.16
)
Weighted average common shares outstanding
Basic and diluted
75,983,201
75,983,201
75,983,201
75,983,201
Management Discussion and Analysis
Sales revenues, net
The Company’s revenue recognition policy is in accordance with the requirements of Staff Accounting Bulletin (“SAB”) No. 104, Revenue Recognition (“SAB 104”), ACT Topic 605, Accounting for Consideration Given by a Vendor to a Customer (Including a Reseller of the Vendor’s products) and other applicable revenue recognition guidance and interpretations. Sales revenue is recognized at the date of shipment to customers when a formal arrangement exists, the price is fixed or determinable, the delivery is completed, no other significant obligations of the Company exist and collectability is reasonable assured. Transportation income is generated form transporting passengers and cargo and is recognized at the time when passengers and cargo are conveyed to the destination port. Payments received before all of the relevant criteria for revenue recognition are satisfied are recorded as unearned revenue. Commissions paid to the Company’s affiliates are considered to be a reduction of the selling prices of its products, and are recorded as a reduction of revenue.
Loss from disposal of Excalibur
The Company recorded a loss of approximately $2,623,000 in the three months ended December 31, 2014 due to the approximately $9.7 million loss arising from the write-off of the Company’s total receivable from Excalibur. The loss was offset by an approximately $7 million gain resulting from the deconsolidation of Excalibur arising from the Company’s loss of its shareholding rights in Excalibur.
Comments & Business Outlook
EFT HOLDINGS, INC.
Consolidated Statements of Operations
(Unaudited)
Three Months Ended
Six Months Ended
September 30,
September 30,
September 30,
September 30,
2014
2013
2014
2013
Sales revenues, net
$
118,961
$
511,389
$
348,534
$
932,229
Shipping charges
45,004
136,295
113,409
221,477
Total revenues, net
163,965
647,684
461,943
1,153,706
Cost of goods sold
62,182
173,836
140,531
364,689
Shipping costs
26,843
18,475
32,146
28,879
Total cost of revenues
89,025
192,311
172,677
393,568
Gross profit
74,940
455,373
289,266
760,138
Operating expenses:
Selling, general and administrative expenses
848,575
1,808,888
2,590,794
3,260,889
Provision for inventory obsolescence
62,255
(44,158
)
119,231
105,207
Royalty expenses
228,202
37,339
250,000
80,404
Total operating expenses
1,139,032
1,802,069
2,960,025
3,446,500
Net operating loss
(1,064,092
)
(1,346,696
)
(2,670,759
)
(2,686,362
)
Other income/(expense)
Interest income
43,097
72,416
94,124
158,895
Interest expense
(40,560
)
(790
)
(72,256
)
(3,949
)
Gain/(loss) on disposal of fixed assets
2,549
-
4,831
-
Gain/(loss) on disposal of securities available for sale (includes $(53,989) and $73,434 accumulated other comprehensive income/(loss) reclassifications for unrealized net gains on securities available for sale for the six months ended September 30, 2014 and 2013, respectively)
(72,849
)
1,224
(56,677
)
50,617
Dividend income
4,482
-
8,787
-
Foreign exchange gain/(loss)
(2,339
)
698
(2,534
)
296
Gain on sale of long-term investment
1,445,646
556
2,457,899
1,308
Total other income
1,380,026
74,104
2,434,174
207,167
Income/(loss) from continuing operations before income taxes and non-controlling interest
315,934
(1,272,592
)
(236,585
)
(2,479,195
)
Income taxes expense (benefit)
1,872
(8,733
)
1,872
(8,733
)
Income/(loss) from continuing operations
314,062
(1,263,859
)
(238,457
)
(2,470,462
)
Income/(loss) from discontinued operations
(29,326
)
(151,995
)
2,588
(187,139
)
Net income/(loss)
284,736
(1,415,854
)
(235,869
)
(2,657,601
)
(Income)/loss from non-controlling interest
17,043
(16,337
)
2,851
3,979
Net income/(loss) attributable to EFT Holdings, Inc.
$
301,779
$
(1,432,191
)
$
(233,018
)
$
(2,653,622
)
Net income/(loss) per share – continuing operations
Basic and diluted
$
0.00
$
(0.02
)
$
(0.00
)
$
(0.03
)
Net income/(loss) per share – discontinued operations
Basic and diluted
$
(0.00
)
$
(0.00
)
$
0.00
$
(0.00
)
Net income/(loss) per common share attributable to EFT Holdings, Inc.
Basic and diluted
$
0.00
$
(0.02
)
$
(0.00
)
$
(0.03
)
Weighted average common shares outstanding
Basic and diluted
75,983,201
75,983,201
75,983,201
75,983,201
Management Discussion and Analysis
Sales revenues, net
Sales revenues, net decreased to approximately $119,000 for the three months ended September 30, 2014 from approximately $511,000 for the three months ended September 30, 2013 primarily due to a decline in sales demand from the Company’s Affiliates. Sales revenues, net excludes revenue from shipping charges and reflects the deduction of commission expense. The Company’s policy is to pay commissions to Affiliates upon receipt of sales orders even before revenue can be recognized. In addition, sales orders dropped from $561,000 to $361,000 which caused commission expense to decrease from $317,000 for the three months ended September 30, 2013 to $196,000 for the three months ended September 30, 2014.
The Company’s revenue recognition policy is in accordance with the requirements of Staff Accounting Bulletin (“SAB”) No. 104, Revenue Recognition (“SAB 104”), ACT Topic 605, Accounting for Consideration Given by a Vendor to a Customer (Including a Reseller of the Vendor’s products) and other applicable revenue recognition guidance and interpretations. Sales revenue is recognized at the date of shipment to customers when a formal arrangement exists, the price is fixed or determinable, the delivery is completed, no other significant obligations of the Company exist and collectability is reasonable assured. Transportation income is generated form transporting passengers and cargo and is recognized at the time when passengers and cargo are conveyed to the destination port. Payments received before all of the relevant criteria for revenue recognition are satisfied are recorded as unearned revenue. Commissions paid to the Company’s affiliates are considered to be a reduction of the selling prices of its products, and are recorded as a reduction of revenue.
Income/(loss) from discontinued operations
Following the disposal of the Ocean LaLa in March 2014, the operating results associated with the transportation business have been classified as discontinued operations in the consolidated financial statements. The Company recorded a loss of approximately $29,000 in the three months ended September 30, 2014, mainly due to interest expense accrued for the Euro 2 million arbitration award payable to Ezone ( refer to Note 17 – Litigation), compared to a loss of approximately $152,000 in the three months ended September 30, 2013, mainly due to higher depreciation, payroll and other operating expenses in the same period last year.
Comments & Business Outlook
EFT HOLDINGS, INC.
Consolidated Statements of Operations (Unaudited)
Three Months Ended
June 30,
June 30,
Sales revenues, net
$
229,573
$
420,840
Shipping charges
68,405
85,182
Total revenues
297,978
506,022
Cost of goods sold
78,349
190,853
Shipping costs
5,303
10,404
Total cost of revenues
83,652
201,257
Gross profit
214,326
304,765
Operating expenses:
Selling, general and administrative expenses
1,742,219
1,452,001
Provision for inventory obsolescence
56,976
149,365
Royalty expenses
21,798
43,065
Total operating expenses
1,820,993
1,644,431
Net operating loss
(1,606,667
)
(1,339,666
)
Other income/(expense)
Interest income
51,027
86,479
Interest expense
(31,696
)
(3,159
)
Gain / (loss) on disposal of fixed assets
2,282
-
Gain on disposal of securities available for sale (includes $8,562 and $51,569 accumulated
16,172
49,393
other comprehensive income reclassifications for unrealized net gains on securities
available for sale for the three months ended June 30, 2014 and 2013, respectively)
Dividend income
4,305
-
Foreign exchange gain / (loss)
(195
)
(402
)
Other income
1,012,253
752
Total other income
1,054,148
133,063
Loss from continuing operations before income taxes and non-controlling interest
(552,519
)
(1,206,603
)
Income taxes expense
-
-
Loss from continuing operations
(552,519
)
(1,206,603
)
Income from discontinued operations
31,914
(35,144
)
Net loss
(520,605
)
(1,241,747
)
Non-controlling interest
(14,192
)
20,316
Net loss attributable to EFT Holdings, Inc.
$
(534,797
)
$
(1,221,431
)
Net loss per share – continuing operations
Basic and diluted
$
(0.01
)
$
(0.02
)
Net loss per share – discontinued operations
Basic and diluted
$
(0.00
)
$
(0.00
)
Net loss per common share attributable to EFT Holdings, Inc.
Basic and diluted
$
(0.01
)
$
(0.02
)
Weighted average common shares outstanding
Basic and diluted
75,983,201
75,983,201
Management Discussion and Analysis
Sales revenue, net
Sales revenues , net of commission expense, decreased to approximately $230,000 for the three months ended June 30, 2014 from approximately $421,000 for the three months ended June 30, 2013 primarily due to a decline in sales demand from the Company’s Affiliates. The Company’s policy is to pay commissions to Affiliates upon receipt of sales orders even before revenue can be recognized. In addition, sales orders dropped from $933,000 to $385,000 which caused commission expense to decrease from $529,600 for the three months ended June 30, 2013 to $236,700 for the three months ended June 30, 2014.
The Company’s revenue recognition policy is in accordance with the requirements of Staff Accounting Bulletin (“SAB”) No. 104, Revenue Recognition (“SAB 104”), ACT Topic 605, Accounting for Consideration Given by a Vendor to a Customer (Including a Reseller of the Vendor’s products) and other applicable revenue recognition guidance and interpretations. Sales revenue is recognized at the date of shipment to customers when a formal arrangement exists, the price is fixed or determinable, the delivery is completed, no other significant obligations of the Company exist and collectability is reasonable assured. Transportation income is generated form transporting passengers and cargo and is recognized at the time when passengers and cargo are conveyed to the destination port. Payments received before all of the relevant criteria for revenue recognition are satisfied are recorded as unearned revenue. Commissions paid to the Company’s affiliates are considered to be a reduction of the selling prices of its products, and are recorded as a reduction of revenue.
Comments & Business Outlook
EFT HOLDINGS, INC.
Consolidated Statements of Operations
Year Ended
March 31, 2014
March 31, 2013
Sales revenues, net
$
1,487,791
$
2,320,765
Shipping charges
378,887
448,947
Access fees
-
108,300
1,866,678
2,878,012
Cost of goods sold
556,875
668,556
Shipping costs
45,324
8,694
Operating costs – Excalibur
394,691
1,015,864
996,890
1,693,114
Gross profit
869,788
1,184,898
Operating expenses:
Selling, general and administrative expenses
6,772,114
6,066,819
Impairment of transportation equipment
-
5,477,847
Provision for inventory obsolescence
888,320
649,080
Royalty expenses
500,000
500,000
Total operating expenses
8,160,434
12,693,746
Net operating loss
(7,290,646
)
(11,508,848
)
Other income/(expense)
Interest income
288,993
606,128
Interest expense
(1,473,005
)
(123,754
)
Gain / (loss) on disposal of fixed assets
452,566
(13,456
)
Gain on disposal of securities available for sale
(includes $135,876 and $3,846 accumulated other comprehensive income
reclassifications for unrealized net gains on securities available for sale for the years ended March 31, 2014 and 2013, respectively)
51,069
390,211
Dividend income
-
26,655
Write-off and impairment of prepayment on development in progress
(8,966,004
)
(11,227,065
)
Foreign exchange loss
(63,654
)
(43,998
)
Other losses
(20,805
)
(9,680
)
Other income
241,096
19,975
Total other expense
(9,489,744
)
(10,374,984
)
Net loss before income taxes and non-controlling interest
(16,780,390
)
(21,883,832
)
Income taxes expense
(3,561,310
)
(635,697
)
Net loss
(20,341,700
)
(22,519,529
)
Non-controlling interests
315,530
3,353,844
Net loss attributable to EFT Holdings, Inc.
$
(20,026,170
)
$
(19,165,685
)
Net loss per common share attributable to EFT Holdings, Inc.
Basic and diluted
$
(0.26
)
$
(0.25
)
Weighted average common shares outstanding
Basic and diluted
75,983,201
75,983,201
Management Discussion and Analysis
Sales revenue, net
Sales revenues, net of commission expense, decreased to approximately $1,488,000 for the year ended March 31, 2014 from approximately $2,321,000 for the year ended March 31, 2013 primarily due to a decline in sales demand from the Company’s Affiliates. The Company’s policy is to pay commissions to its Affiliates upon receipt of the sales orders even though revenue is not recognized by the Company until later when the products are delivered. Commissions paid to the Company’s Affiliates are considered to be a reduction of the selling prices of its products, and are recorded as a reduction of revenue.
Auditor trail
Item 4.01 Changes in Registrant’s Certifying Accountant.
(a) Dismissal of independent registered public accounting firm.
On April 16, 2014, the Company notified Anderson Bradshaw PLLC (“Anderson Bradshaw”), the Company’s independent registered public accounting firm, that Anderson Bradshaw would be dismissed as the Company's principal accountant for the Company’s fiscal year ended March 31, 2014. Anderson Bradshaw’s dismissal became effective on April 16, 2014. The decision to change the accounting firm was approved by the Audit Committee of the Board of Directors of the Company (the “Audit Committee”).
The reports of Anderson Bradshaw on the Company’s consolidated financial statements for the fiscal years ended March 31, 2013 and 2012, did not contain an adverse opinion or disclaimer of opinion, and such reports were not qualified or modified as to uncertainty, audit scope or accounting principles.
The Company has not yet filed its Annual Report on Form 10-K for the fiscal year ended March 31, 2014. During the Company’s two most recent fiscal years ended March 31, 2014 and 2013, and the subsequent interim periods through the effective date of the dismissal of Anderson Bradshaw, there was no disagreement on any matter of accounting principles or practices, financial statement disclosure or auditing scope of procedure, which disagreement, if not resolved to the satisfaction of Anderson Bradshaw, would have caused Anderson Bradshaw to make reference thereto in its reports on the Company’s consolidated financial statements for such periods.
There have been no reportable events as provided in Item 304(a)(1)(v) of Regulation S-K during the Company’s fiscal years ended March 31, 2014 and 2013, and any subsequent periods through the effective date of the dismissal of Anderson Bradshaw.
The Company’s management has authorized Anderson Bradshaw to respond fully to the inquiries of the new independent registered public accounting firm regarding all matters.
The Company provided Anderson Bradshaw a copy of the disclosure set forth in this Current Report on Form 8-K, and requested that Anderson Bradshaw furnish a letter addressed to the SEC stating whether it agrees with the above statements. A copy of Anderson Bradshaw’s letter to the SEC is filed hereto as Exhibit 16.1.
(b) Engagement of new independent registered public accounting firm.
On April 16, 2014, the Company engaged Paritz & Company, P.A. (“Paritz”) to serve as its independent registered public accounting firm. During the years ended March 31, 2014 and 2013, and during the subsequent interim period through the date of Paritz’s engagement, the Company did not consult with Paritz regarding (i) the application of accounting principles to a specific completed or contemplated transaction, (ii) the type of audit opinion that might be rendered on the Company’s financial statements by Partiz, in each case where written or oral advice provided by Paritz would be an important factor considered in reaching a decision as to any accounting, auditing or financial reporting issues, or (iii) any other matter that was the subject of a disagreement between the Company and Anderson Bradshaw or was a reportable event as described in Item 304(a)(1)(iv) or Item 304(a)(1)(v) of Regulation S-K, respectively. The decision to engage Paritz has been approved by the Audit Committee.
Comments & Business Outlook
Consolidated Statements of Income (Unaudited)
Three Months Ended
Nine Months Ended
December 31,
December 31,
December 31,
December 31,
2013
2012
2013
2012
Sales revenues, net
$
348,096
$
588,763
$
1,280,325
$
1,679,673
Shipping charges
85,753
118,328
307,230
344,836
Access fees
-
10,060
-
101,370
Total revenues
433,849
717,151
1,587,555
2,125,879
Cost of goods sold
97,639
234,381
462,328
497,501
Shipping costs
10,882
4,424
39,761
4,842
Operating costs - Excalibur
114,334
258,491
349,430
761,569
Total cost of revenues
222,855
497,296
851,519
1,263,912
Gross profit
210,994
219,855
736,036
861,967
Operating expenses:
Selling, general and administrative expenses
1,803,621
1,584,352
5,140,100
4,429,669
Inventory obsolescence
293,501
(208,681)
398,708
498,398
Royalty expenses – Related party
35,482
59,686
115,886
174,842
Total operating expenses
2,132,604
1,435,357
5,654,694
5,102,909
Net operating loss
(1,921,610)
(1,215,502)
(4,918,658)
(4,240,942)
Other income/(expense)
Interest income
69,706
153,226
228,626
455,247
Interest expense
(1,720)
(21,879)
(5,669)
(118,226)
Gain/(loss) on disposal of fixed assets
(5,250)
(77)
(6,115)
(12,713)
Gain on disposal of securities available for sale (includes $74,198 and $9,488 accumulated other comprehensive income reclassified from unrealized gains on securities available for sale for the nine months ended December 31, 2013 and 2012, respectively)
(4,209)
282,649
46,408
353,371
Dividend income
-
1,001
-
26,655
Foreign exchange gain
118
199,084
46,779
708,484
Other income
125,727
1,054
205,057
3,415
Total other income
184,372
615,058
515,086
1,416,233
Net loss before income taxes and non-controlling interest
(1,737,238)
(600,444)
(4,403,572)
(2,824,709)
Income tax benefit/(provision)
(7,741,386)
(4,168)
(7,732,653)
(17,306)
Net loss
(9,478,624)
(604,612)
(12,136,225)
(2,842,015)
Non-controlling interest
57,413
179,799
157,188
402,611
Net loss attributable to EFT Holdings, Inc.
(9,421,211)
$
(424,813)
(11,979,037)
$
(2,439,404)
Net loss per common share
Basic and diluted
$
(0.12)
$
(0.01)
$
(0.16)
$
(0.03)
Weighted average common shares outstanding
Basic and diluted
75,983,201
75,983,201
75,983,201
75,983,201
Management Discussion and Analysis
Results of Operations
Sales revenue, net
Comments & Business Outlook
EFT HOLDINGS, INC.
Consolidated Statements of Income (Unaudited)
Three Months Ended
June 30,
June 30,
Sales revenues, net
$
602,086
$
9,520,294
Shipping charges
117,617
1,001,810
Access fees
108,270
-
Transportation income – Excalibur
-
1,012
827,973
10,523,116
Cost of goods sold
135,936
1,190,596
Shipping costs
418
630,962
Operating costs - Excalibur
254,562
291,473
390,916
2,113,031
Gross profit
437,057
8,410,085
Operating expenses:
Selling, general and administrative expenses
1,446,928
1,982,111
Provision for inventory obsolescence
683,687
-
Marketing expenses
-
41,441
Royalty expenses
59,052
271,925
Total operating expenses
2,189,667
2,295,477
Net operating income/(loss)
(1,752,610
)
6,114,608
Other income
Interest income
93,239
185,396
Interest expense
(36,573
)
-
Loss on disposal of fixed assets
(12,656
)
-
Gain/(loss) on disposal of securities available-for-sale
(619
)
86,000
Dividend income
14,459
12,528
Foreign exchange gain/(loss)
(74,830
)
611,642
Other income
1,628
2,393
Total other income/(loss)
(15,352
)
897,959
Net income/(loss) before income taxes and non-controlling interest
(1,767,962
)
7,012,567
Income taxes
-
-
Net income/(loss)
(1,767,962
)
7,012,567
Non-controlling interest
103,964
329,835
Net income/(loss) attributable to EFT Holdings, Inc.
$
(1,663,998
)
$
7,342,402
Net income/(loss) per common share
Basic and diluted
$
(0.02
)
$
0.10
Weighted average common shares outstanding
Basic and diluted
75,983,201
75,983,201
Comments & Business Outlook
EFT HOLDINGS, INC.
Consolidated Statements of Operations (Unaudited)
Three Months Ended
Nine Months Ended
December 31,
December 31,
December 31,
December 31,
Sales revenues, net
$
847,462
$
3,305,807
$
13,090,135
$
10,857,113
Shipping charges
316,470
854,770
1,680,353
2,606,500
Transportation income/(loss) – Excalibur
(4
)
81,329
1,020
139,113
1,163,928
4,241,906
14,771,508
13,602,726
Cost of goods sold
260,991
1,696,916
2,173,965
4,098,657
Shipping costs
145,803
531,885
1,133,616
1,516,778
Operating costs - Excalibur
284,656
451,326
838,963
2,273,975
691,450
2,680,127
4,146,544
7,889,410
Gross profit
472,478
1,561,779
10,624,964
5,713,316
Operating expenses:
Selling, general and administrative expenses
2,116,501
1,833,110
5,991,874
5,565,850
Marketing expenses
115,398
299,374
223,393
853,133
Royalty expenses
157,790
502,566
872,191
1,522,251
Impairment loss of loan receivable
-
1,567,000
-
1,567,000
Impairment loss of transportation equipment
-
1,164,091
-
5,364,091
Total operating expenses
2,389,689
5,366,141
7,087,458
14,872,325
Net operating income/(loss)
(1,917,211
)
(3,804,362
)
3,537,506
(9,159,009
)
Other income/(expense)
Interest income
96,545
254,770
393,918
764,984
Gain on disposal of held-to-maturity securities
-
243,855
-
243,855
Gain on disposal of securities available-for-sale
4,195
22,590
98,559
116,239
Dividend income
12,882
9,586
38,935
21,355
Foreign exchange loss
(194,970
)
(6,248
)
(1,106,848
)
(1,924
)
Other income
111,567
23,087
116,329
58,173
Total other income/(expense)
30,219
547,640
(459,107
)
1,202,682
Net income/(loss) before income taxes and non-controlling interest
(1,886,992
)
(3,256,722
)
3,078,399
(7,956,327
)
Income benefit/(taxes)
-
(143,539
)
64,900
(145,939
)
Net income/(loss)
(1,886,992
)
(3,400,261
)
3,143,299
(8,102,266
)
Non-controlling interest
565,639
876,257
1,230,751
4,143,406
Net income/(loss) attributable to EFT Holdings, Inc.
(1,321,353
)
$
(2,524,004
)
4,374,050
$
(3,958,860
)
Net income/(loss) per common share
Basic and diluted
$
(0.02
)
$
(0.03
)
$
0.06
$
(0.05
)
Weighted average common shares outstanding
Basic and diluted
75,983,201
75,983,205
75,983,201
75,983,205
Investor Alert
Section 1 Registrant’s Business and Operations
Item 1.02 Termination of a Material Definitive Agreement.
On June 15, 2012, EFT Holdings, Inc. (the “Company”) received a letter (the “Letter”) from Meifu Development Co., Ltd. (“Meifu”), a company incorporated in the Republic of China (“Taiwan”), wherein Meifu served notice of a termination (as of that date) of its contracts with the Company for the purchase of an office building in Taipei, Taiwan (the “Taiwan Building”) and a purported forfeiture of the Company’s deposit of approximately $17.3 million (the “Deposit”). The Company is currently considering how to respond to the Letter.
On May 2, 2011, Jack Qin, as an agent, entered into agreements with Meifu and TransGlobe Life Insurance Inc. (“TransGlobe”) to purchase the Taiwan Building, which is under construction and expected to be completed by the end of 2013. On July 1, 2011 and July 7, 2011, the Company’s wholly owned subsidiary (EFT Investment Co. Ltd. (Taiwan)), as a party to the contract in place of Jack Qin, entered into two sets of agreements with the sellers of the office building that provided for substantially the same rights and obligations as the original May 2, 2011 agreements.
The total purchase price for the Taiwan Building, which consists of 14 floors and 144 parking spaces, is approximately $237.9 million. Pursuant to the terms of its agreements with Meifu and TransGlobe, the Company was obliged to pay the Deposit to Meifu, a separate deposit to Transglobe and to make twelve (12) installments (in various amounts) until the completion of the building project. The residual payment of approximately $164 million was due at the time of completion of the building project.
The latest payment to Meifu, in the amount of approximately $13.4 million purportedly due on January 20, 2012, was suspended by the Company due to, among other things, the failure of Meifu to comply with certain conditions precedent applicable to the agreements. Meifu has declared in the Letter that its contracts with the Company for the Taiwan Building have been terminated and that the previously paid Deposit is forfeited. The Company is currently considering how to respond to the Letter, and will take all steps to protect its rights.
Comments & Business Outlook
EFT HOLDINGS, INC.
Three Months Ended
Six Months Ended
September 30,
2011
September 30,
2010
September 30,
2011
September 30,
2010
Sales revenues, net
$ 2,722,379 $ 3,785,434 $ 12,242,673 $ 7,551,306
Shipping charges
362,073 868,200 1,363,883 1,751,730
Transportation income – Excalibur
12 57,784 1,024 57,784
3,084,464 4,711,418 13,607,580 9,360,820
Cost of goods sold
362,843 1,173,703 2,168,430 2,401,741
Shipping costs
356,851 669,319 987,813 984,893
Operating costs - Excalibur
55,513 218,680 144,497 910,572
775,207 2,061,702 3,300,740 4,297,206
Gross profit
2,309,257 2,649,716 10,306,840 5,063,614
Operating expenses:
Selling, general and administrative expenses
1,814,909 1,919,937 3,727,617 3,663,000
Depreciation
285,674 942,738 557,566 981,818
Marketing expenses
66,554 277,858 107,995 553,759
Royalty expenses
442,476 512,747 714,401 1,019,685
Impairment loss of transportation equipment
- 4,200,000 - 4,200,000
Total operating expenses
2,609,613 7,853,280 5,107,579 10,418,262
Net operating income (loss)
(300,356 ) (5,203,564 ) 5,199,261 (5,354,648 )
Other income (expense)
Interest income
111,977 338,103 297,373 510,214
Gain on disposal of securities available-for-sale
8,364 88,557 94,364 93,649
Dividend Income
13,525 11,769 26,053 11,769
Foreign exchange gain (loss)
(1,523,520 ) (128,105 ) (911,878 ) 4,323
Other income
2,369 19,836 4,762 35,086
Total other income (expense)
(1,387,285 ) 330,160 (489,326 ) 655,041
Net income (loss) before income taxes and non-controlling interest
(1,687,641 ) (4,873,404 ) 4,709,935 (4,699,607 )
Income benefit (taxes)
64,900 (2,400 ) 64,900 (2,400 )
Net Income (loss)
(1,622,741 ) (4,875,804 ) 4,774,835 (4,702,007 )
Non-controlling interest
335,277 2,792,696 665,112 3,267,149
Net income/ (loss) attributable to EFT Holdings, Inc.
(1,287,464 ) $ (2,083,108 ) 5,439,947 $ (1,434,858 )
Net income/ (loss) per common share
Basic and diluted
$ (0.02 ) $ (0.03 ) $ 0.07 $ (0.02 )
Weighted average common shares outstanding
Basic and diluted
75,983,201 75,983,205 75,983,201 75,983,205
The Company’s products are sensitive to business and personal discretionary spending levels and tend to decline or grow more slowly during economic downturns, including downturns in any of the Company’s major markets. The current worldwide recession is expected to adversely affect the Company’s sales and liquidity for the foreseeable future . Although the Company has mitigated decreases in sales by lowering its levels of inventory to preserve cash on hand, the Company does not know when the recession will subside and when consumer spending will increase from its current depressed levels. Even if consumer spending increases, the Company is not sure when consumer spending will increase for its products which will affect its liquidity
CFO Trail
On August 30, 2011, Jeffery Cheung
resigned as the principal financial and accounting officer of EFT Holdings, Inc. (the “Company”), as disclosed in the current report filed on Form 8-K with the Securities and Exchange Commission on August 29, 2011. On November 4, 2011, the Company has appointed William Sluss to act as the Company’s interim chief financial officer until such time as the Company is able to appoint a new chief financial officer.
Comments & Business Outlook
Three Months Ended
June 30, 2011
June 30, 2010
Sales revenues, net
$ 9,520,294 $ 3,765,872
Shipping charges
1,001,810 883,530
Transportation income – Excalibur
1,012 -
10,523,116 4,649,402
Cost of goods sold
1,805,587 1,228,038
Shipping costs
630,962 315,574
Operating costs - Excalibur
88,984 691,892
2,525,533 2,235,504
Gross profit
7,997,583 2,413,898
Operating expenses:
Selling, general and administrative expenses
1,912,708 1,743,063
Depreciation
271,892 39,080
Royalty Expenses
271,925 506,938
Marketing expenses
41,441 275,901
Total operating expenses
2,497,966 2,564,982
Net operating income (loss)
5,499,617 (151,084 )
Other income (expense)
Interest income
185,396 172,111
Gain on disposal of available-for-sale securities
86,000 5,092
Dividend Income
12,528 -
Foreign exchange gain
611,642 132,428
Other income
2,393 15,250
Total other income
897,959 324,881
Net income before income taxes and non-controlling interest
6,397,576 173,797
Income taxes expense
- -
Net Income
6,397,576 173,797
Non-controlling interest
329,835 474,453
Net income attributable to EFT Holdings Inc.
6,727,411 $ 648,250
Net income per common share
Basic and diluted
0.09 $ 0.01
Weighted average common shares outstanding
Basic and diluted
75,983,201 75,983,205
Liquidity Requirements
On May 2, 2011, Jack Qin, as an agent, entered into agreements to purchase an office building located in Taipei, Taiwan. The office building is under construction and will be completed by the end of 2013. The total purchase price for the office building, which consists of 14 floors and 144 parking spaces, is approximately $248 million. On May 31, 2011, EFT Investment Co. Ltd. (Taiwan) assumed the same rights and obligations under these agreements. As of the date of this filing, the Company’s Board has not approved the purchase of the building. The Company has made payments of $21 million toward the purchase price as of August 11, 2011. The Company intends to retain one floor of the office building for its own business operation and plans to sell the majority of the remaining floors.
Pursuant to the terms of these agreements , the Company is obliged to pay the remaining twelve (12) outstanding installments with various amounts due over the next twenty-six (26) months till the completion of the building project. The next payment, in the amount of approximately 14 million, is due on November 21, 2011. Each subsequent quarterly payment, starting from April 20, 2012, is approximately $4 million. Finally, the residual payment of approximately 170 million is due at the time of completion of the building.
Investor Alert
Excalibur
filed a lawsuit against Jiao Ren-Ho (former chairman of Excalibur) in the Taiwan Shihlin District Prosecutors office in February 2010. Excalibur alleges, among other things, that Jiao Ren-Ho committed the offences of capital forging, fraud, breach of trust, and document fabrication.
Comments & Business Outlook
Comments & Business Outlook
We believe that the Business to Customer business is robust and that consumers have become more confident in ordering products, like ours, over the internet. However, the nutritional supplement and cosmetic e-business markets have and continue to become increasingly competitive and are rapidly evolving. Barriers to entry are minimal and current and new competitors can launch new websites at a relatively low cost. Many competitors in this area have greater financial, technical and marketing resources than our Company. Continued advancement in technology and increasing access to that technology is paving the way for growth in direct marketing. We also face competition for consumers from retailers, duty-free retailers, specialty stores, department stores and specialty and general merchandise catalogs, many of which have greater financial and marketing resources than we have. Notwithstanding the foregoing, we believe that we are well-positioned within the Asian consumer market with our current plan of supplying American merchandise brands to consumers and that our exposure to both the Asian and American cultures gives us a competitive advantage. There can be no assurance that we will maintain our competitive edge or that we will continue to provide only American made merchandise.
However, the global economy is currently undergoing a period of unprecedented volatility, and the future economic environment may continue to be less favorable than that of recent years. This has led, and could further lead, to reduced consumer spending in the foreseeable future, and this may include spending on nutritional and beauty products and other discretionary items, like our products. In addition, reduced consumer spending may drive us and our competitors to decrease prices. These conditions may adversely affect our revenues and profits.
Our long-term plan is to use funds from the private placement and revenues earned for investments and acquisitions to allow us to grow our existing business operations and to enter into additional territories. To date, we have not located any acquisition targets nor do we have any commitments for capital expenditures, other than Excalibur. We believe that due to the current global economic recession, there might be material opportunities for us to acquire smaller companies at discount prices. There can be no assurances however that we will be successful in doing so. Our expansion will rely to a great degree on global economic conditions and perceived future changes. Until such time, we intend to retain our cash reserves to fund our operations.
Source: SEC Form (10Q For the quarterly period ended June 30, 2009)
Comments & Business Outlook
Our products are sensitive to business and personal discretionary spending levels and tend to decline or grow more slowly during economic downturns, including downturns in any of our major markets. The current worldwide recession is expected to adversely affect our sales and liquidity for the foreseeable future . Although we have mitigated decreases in sales by lowering our levels of inventory to preserve cash on hand, we do not know when the recession will subside and when consumer spending will increase from its current depressed levels. Even if consumer spending increases, we are not sure when consumer spending will increase for our products which will affect our liquidity. We believe we have enough capital to fund our operations during the next 12 months .
Source: SEC Form 10K (For the fiscal year ended: March 31, 2009)
Potential Valuation Scenarios
Previous valuation scenarios should not be relied upon, due to a recent significant decline in revenues and profitability .
The situation may be temporary:
Our Revenues decreased from $22,984,940 for the nine months ended December 31, 2007 to $12,993,810 for the nine months ended December 31, 2008 . Revenues decreased because of natural disasters that occurred in China from extreme cold, earth quakes, and monsoon and interruptions caused by delivery problems due to the Beijing Olympics.
The GeoTeam ® will monitor the next few quarters for signs of a rebound.
Source: SEC Form 10Q ( For the quarterly period ended December 31, 2008)
Comments & Business Outlook
Industry Trends
We believe that the Business to Commerce -business is robust and that consumers have become more confident in ordering products, like ours, over the internet. However, the nutritional supplement and cosmetic e-business markets have and continue to become increasingly competitive and are rapidly evolving. Barriers to entry are minimal and current and new competitors can launch new websites at a relatively low cost. Many competitors in this area have greater financial, technical and marketing resources than our Company. Continued advancement in technology and increasing access to that technology is paving the way for growth in direct marketing. We also face competition for consumers from retailers, duty-free retailers, specialty stores, department stores and specialty and general merchandise catalogs, many of which have greater financial and marketing resources than we have. Notwithstanding the foregoing, we believe that we are well-positioned within the Asian consumer market with our plan of supplying American merchandise brands to consumers and that our exposure to both the Asian and American cultures gives us a competitive advantage.
However, the global economy is currently undergoing a period of unprecedented volatility, and the future economic environment may continue to be less favorable than that of recent years. This has led, and could further lead, to reduced consumer spending in the foreseeable future, and this may include spending on nutritional and beauty products and other discretionary items, like our products. In addition, reduced consumer spending may drive us and our competitors to decrease prices. These conditions may adversely affect our industry, business and results of operations and may cause the market value of our common stock to decline.
Source: SEC Form Third Quarter 10Q ( For the quarterly period ended December 31, 2008)
Research
Came public via a reverse merger. The company is still on the Pink Sheets. 61,256,900 shares of the Company's common stock issued and outstanding." (Source: Press November 8, 2007) November 2007 for the year ending December 2007 equating to 100% revenue growth and net income growth. The company did not give earnings per share (EPS) guidance. Using 61.2 million shares outstanding this would translate into $.36 EPS. The GeoTeam is still attempting to find out if guidance assumed any tax. We hope that there will be more information forthcoming soon, as the company recently hired an accounting firm to prepare audited financials. GeoTeam® also needs to get a better handle on capital and possible share needs.
Potential Valuation Scenarios
Trailing earnings per share (EPS): $0.36 fully taxed . We will provide an update as soon as more information becomes available. Short Term (NOW) Scenarios Based on: Long Term ( 12 Months Forward) Scenario Based on: Alternate Scenarios Based on P/E to EPS Growth Comparison: scenarios based on some commonly used investment guidelines. They are provided to aid investors in making their own investment decisions.
Comments & Business Outlook
2007 company Provided Guidance:
Financials
For the Fiscal year Ended December 31,
