Item 6. Management's Discussion and Analysis or Plan of Operation. Plan of Operation.
Our Company's plan of operation for the next 12 months is to:(i)consider guidelines of industries in which our Company may have an interest;(ii) adopt a business plan regarding engaging in the business of any selected industry; and (iii) to commence such operations through funding and/or the acquisition of a "going concern" engaged in any industry selected.
During the next 12 months, our Company's only foreseeable cash requirements will relate to maintaining our Company in good standing or the payment of expenses associated with legal fees, accounting fees and reviewing or investigating any potential business venture, which may be advanced by management or principal stockholders as loans to our Company. Because we have not determined any business or industry in which our operations will be commenced, and we have not identified any prospective venture as of the date of this Annual Report, it is impossible to predict the amount of any such loan. Any such loan will be on terms no less favorable to our Company than would be available from a commercial lender in an arm's length transaction. As of the date of this Annual Report, our Company has not actively begun to seek any such venture. No advance or loan from any affiliate will be required to be repaid as a condition to any agreement with future acquisition partners.
Results of Operations.
Our Company generated a net loss of $5,008,087, for the year ended December 31, 2004, and $3,129,816 for the year ended December 31, 2003. After a Preferred stock dividend the net loss attributable to common shareholders was $5,064,129 for the year ended December 31, 2004, and $3,246,577 for the year ended December 31, 2003.
Liquidity.
Cybertel incurred net losses of $5,064,129 and $3,246,577 in 2004 and 2003, respectively, and has a working capital deficiency of $20,918,950 and a stockholders' deficit of $944,374 as of December 31, 2004. Our management is attempting to raise sufficient additional capital through sales of stock, but has not done so as of February 26, 2005, the date of our auditor's report. These conditions raise substantial doubt about Cybertel's ability to continue as a going concern, as expressed in our auditor's report that is included in Item 7, Part II.
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