WEB NEWS CFO Trail
Comments & Business Outlook
Three Months Ended
Nine Months Ended
September 30,
September 30,
2015
2014
2015
2014
Operating expenses:
Professional fees
$
9,115
$
20,550
$
43,612
$
59,268
State filing fee and tax
306
(2,970
)
13,503
5,270
General and administrative expenses
9,881
9,761
28,573
30,418
Total operating expenses
19,302
27,341
85,688
94,956
Loss from operations
(19,302
)
(27,341
)
(85,688
)
(94,956
)
Other expense:
Interest expense and other, net
(27,923
)
(31,083
)
(97,183
)
(90,419
)
Interest expense to related party
(3,555
)
(3,555
)
(10,550
)
(10,550
)
Net loss
$
(50,780
)
$
(61,979
)
$
(193,421
)
$
(195,925
)
COMPREHENSIVE INCOME (LOSS), NET OF TAX:
Net loss
$
(50,780
)
$
(61,979
)
$
(193,421
)
$
(195,925
)
Unrealized holding gain (loss) arising during the period
3,132
1,034,356
14,251
466,915
Comprehensive income (loss)
$
(47,648
)
$
972,377
$
(179,170
)
$
270,990
Basic and diluted loss per share
Net loss per share
$
(0.02
)
$
(0.03
)
$
(0.09
)
$
(0.09
)
Weighted average shares outstanding
2,191,689
2,191,689
2,191,689
2,189,282
Management Discussion and Analysis
For the three month period ending September 30, 2015, operating expenses decreased $8,039 or 29% as compared to the same period in fiscal year 2014. This was primarily due to a decrease in professional fees.
Comments & Business Outlook
IRONSTONE GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(unaudited)
Three Months Ended
Six Months Ended
June 30,
June 30,
2015
2014
2015
2014
Operating expenses:
Professional fees
$
13,432
$
26,396
$
37,363
$
38,716
State filing fee and tax
4,340
5,240
13,197
8,240
General and administrative expenses
9,411
6,506
18,692
15,099
Total operating expenses
27,183
38,142
69,252
62,055
Loss from operations
(27,183
)
(38,142
)
(69,252
)
(62,055
)
Other expense:
Interest expense and other
(35,461
)
(32,792
)
(66,722
)
(64,925
)
Interest expense to related party
(3,517
)
(3,517
)
(6,956
)
(6,995
)
Net loss
$
(66,161
)
$
(74,451
)
$
(142,930
)
$
(133,975
)
COMPREHENSIVE LOSS, NET OF TAX:
Net loss
$
(66,161
)
$
(74,451
)
$
(142,930
)
$
(133,975
)
Unrealized holding gain (loss) arising during the period
(57,025
)
(15,189
)
15,781
(567,440
)
Comprehensive loss
$
(123,186
)
$
(89,640
)
$
(127,149
)
$
(701,415
)
Basic and diluted loss per share
Net loss per share
$
(0.03
)
$
(0.03
)
$
(0.07
)
$
(0.06
)
Weighted average shares outstanding
2,191,689
2,191,689
2,191,689
2,188,058
Management Discussion and Analysis
RESULTS OF OPERATIONS
Operating expenses for six months ended June 30, 2015 totaled $69,252, an increase of $7,197 or 11.6% as compared to the six months ended June 30, 2014. The increase was primarily due to an increase in state filing fees of $4,957, and general and administrative costs of $3,593, partially offset by a decrease in professional fees of $1,353. Other expenses for the six months ended June 30, 2015 totaled $73,678, an increase of $1,758 or 2.4% as compared to the six months ended June 30, 2014.
Operating expenses for the three months ended March 31, 2015 decreased $10,959 or 28.7% as compared to the three months ended March 31, 2014. This was primarily due to a decrease in professional fees of $12,964, partially offset by an increase in general and administrative expenses of $2,905. Other expenses for the three months ended March 31, 2015 increased $2,669 or 7.4% as compared to the three months ended March 31, 2014. The increase was due to higher interest expenses.
Comments & Business Outlook
Three Months Ended
March 31,
2015
2014
Operating expenses:
Professional fees
$
23,931
$
12,322
State filing fee
8,857
3,000
General and administrative expenses
6,501
8,591
Total operating expenses
39,289
23,913
Loss from operations
(39,289
)
(23,913
)
Other expense:
Interest expense
(34,002
)
(32,133
)
Interest expense to related party
(3,478
)
(3,478
)
Net loss
$
(76,769
)
$
(59,524
)
COMPREHENSIVE LOSS, NET OF TAX:
Net loss
$
(76,769
)
$
(59,524
)
Unrealized holding gain (loss) arising during the period
72,806
(552,252
)
Comprehensive loss
$
(3,963
)
$
(611,776
)
Basic and diluted loss per share
Net loss per share
$
(0.04
)
$
(0.03
)
Weighted average shares outstanding
2,191,689
2,183,023
Management Discussion and Analysis
Three months ended March 31, 2015 and March 31, 2014
Operating expenses for the three months ended March 31, 2014 increased $17,843 or 202.0% as compared to the three months ended March 31, 2013. This was primarily due to an increase in professional fees, note amortization, stock-based compensation. Other expenses for the three months ended March 31, 2014 increased $4,121 or 14.0% as compared to the three months ended March 31, 2013. This increase was due to higher interest expenses.
Comments & Business Outlook
IRONSTONE GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
Year Ended
December 31,
2014
2013
Operating expenses:
Professional fees
$
73,524
$
41,408
State filing fee
9,616
21,562
Amortization
11,120
5,560
General and administrative
28,549
11,290
Other expenses
-
(32,836
)
Total operating expenses
122,809
46,984
Loss from operations
(122,809
)
(46,984
)
Other expense:
Interest expense
(121,839
)
(112,643
)
Interest expense to related party
(14,105
)
(10,120
)
Net loss
$
(258,753
)
$
(169,747
)
COMPREHENSIVE INCOME (LOSS), NET OF TAX:
Net loss
$
(258,753
)
$
(169,747
)
Unrealized holding gain (loss) arising during the period
(72,220
)
1,830,518
Comprehensive (loss) income
$
(330,973
)
$
1,660,771
Basic and diluted loss per share
Net loss per share
$
(0.12
)
$
(0.09
)
Weighted average shares outstanding
2,189,889
1,872,964
Management Discussion and Analysis
Years ended December 31, 2014 and December 31, 2013
Operating expenses for 2014 totaled $122,809, an increase of $75,825 or 161.4% as compared to 2013. The increase was primarily due to an increase in professional fees of $32,116 and stock compensation expense of $17,678. Interest expense for fiscal year 2014 totaled $135,944, an increase of $13,181 or 10.7% as compared to fiscal year 2013, which is attributed to an increase in the Company's notes payable. Operating expenses for 2013 totaled $46,984, an increase of $1,689 or 3.7% as compared to 2012. The increase was primarily due to an increase in professional fees of $4,021, state taxes of $18,841, and stock compensation expense of $10,326. Interest expense for fiscal year 2013 totaled $122,763, an increase of $26,666 or 27.8% as compared to fiscal year 2012. The increase was due to an increase in borrowings.
Comments & Business Outlook
IRONSTONE GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(unaudited)
Three Months Ended
Nine Months Ended
September 30,
September
2014
2013
2014
2013
Operating expenses:
Professional fees
$
20,550
$
13,800
$
59,268
$
34,105
State filing fee
(2,970
)
-
5,270
7,000
Stock-based compensation
6,471
774
21,533
4,644
General and administrative expenses
510
590
545
790
Total operating expenses
24,561
15,164
86,616
46,539
Loss from operations
(24,561
)
(15,164
)
(86,616
)
(46,539
)
Other expense:
Interest expense
(33,863
)
(30,637
)
(98,759
)
(89,299
)
Interest expense to related party
(3,555
)
(2,112
)
(10,550
)
(5,116
)
Net loss
$
(61,979
)
$
(47,913
)
$
(195,925
)
$
(140,954
)
COMPREHENSIVE INCOME (LOSS), NET OF TAX:
Unrealized holding gain arising during the period
1,034,356
1,170
466,915
9,619
Comprehensive income (loss)
$
972,377
$
(46,743
)
$
270,990
$
(131,335
)
Basic and diluted loss per share
Net loss per share
$
(0.03
)
$
(0.02
)
$
(0.09
)
$
(0.05
)
Weighted average shares outstanding
2,191,689
2,618,500
2,189,282
2,618,500
Management Discussion and Analysis
For the three month period ending September 30, 2014, operating expenses increased $14,237 or 62% as compared to the same period in fiscal year 2013. This was primarily due to an increase in professional fees, note amortization, and stock-based compensation expense.
CFO Trail
Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
Chief Financial Officer
On September 12, 2014, the board of directors (the "Board") of Ironstone Group, Inc. (the "Company"), appointed Eugene Yates Chief Financial Officer of the Company.
Mr. Yates is a partner and Chief Financial Officer at WR Hambrecht + Co. Before joining WR Hambrecht + Co., Mr. Yates spent three years as a financial consultant in the asset management and commercial banking industries. From 2006 to 2011, Mr. Yates served as Chief Financial Officer of Wells Fargo Securities, LLC. From 1998 to 2006, Mr. Yates was Vice President of Fixed Income Finance and Director of Regulatory Reporting for Charles Schwab & Co. Earlier in his career Mr. Yates spent four years as a Senior Manager of Finance for Cedel, a cross-border securities clearing house in Luxembourg. Mr. Yates is a Certified Public Accountant and holds a B.S. degree in Business Administration from the University of Southern California.
None of the entities described above is a parent, subsidiary or other affiliate of the Company.
No arrangement or understanding exists between Mr. Yates and any other person pursuant to which Mr. Yates was appointed as an executive officer of the Company. Mr. Yates is not related to any director or other executive officer of the Company.
The Company has not entered into any compensation arrangements with Mr. Yates.
New Director
On September 12, 2014, the Board elected Elizabeth Hambrecht, the former Chief Financial Officer of the Company, to serve as a director of the Company, effective immediately. Ms. Hambrecht will be compensated for services as a director consistent with the Company's compensation policies for directors generally. A discussion of the Company's director compensation arrangements is included under the heading "Compensation of Directors" in Item 11 of the Company's Form 10-K annual report, filed with the Securities and Exchange Commission on April 15, 2014 (the "2013 10-K"), and is incorporated by reference into this report. A description of certain relationships between Ms. Hambrecht and the Company is included in Item 13 of the 2013 10-K and is incorporated by reference into this report.
Ms. Hambrecht resigned as the Company's Chief Financial Officer on September 12, 2014, effective immediately.
Comments & Business Outlook
IRONSTONE GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
2014
2013
2014
2013
Operating expenses:
Professional fees
$
26,396
$
17,535
$
38,716
$
20,305
State filing fee
5,240
2,400
8,240
7,000
Stock-based compensation
6,471
774
15,064
3,870
General and administrative expenses
35
110
35
200
Total operating expenses
38,142
20,819
62,055
31,375
Loss from operations
(38,142
)
(20,819
)
(62,055
)
(31,375
)
Other expense:
Interest expense
(32,792
)
(29,769
)
(64,925
)
(58,785
)
Interest expense to related party
(3,517
)
(1,797
)
(6,995
)
(2,880
)
Net loss
$
(74,451
)
$
(52,385
)
$
(133,975
)
$
(93,040
)
COMPREHENSIVE INCOME (LOSS), NET OF TAX:
Net loss
$
(74,451
)
$
(52,385
)
$
(133,975
)
$
(93,040
)
Unrealized holding gain (loss) arising during the period
(15,189
)
1,560
(567,440
)
8,449
Comprehensive loss
$
(89,640
)
$
(50,825
)
$
(701,415
)
$
(84,591
)
Basic and diluted loss per share
Net loss per share
$
(0.03
)
$
(0.02
)
$
(0.06
)
$
(0.04
)
Weighted average shares outstanding
2,191,689
2,618,500
2,188,058
2,618,500
Management Discussion and Analysis
Comparison of 2014 to 2013
For the three month period ended June 30, 2014, operating expenses increased $17,323 or 83% as compared to the same period in fiscal year 2013. This was primarily due to an increase in professional fees, and stock-based compensation expense.
