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MXXR(.0055) to Acquire an Additional Interest in the Clovelly Prospect May 21, 2007 4:00:00 PM LOS ANGELES, CALIFORNIA -- (MARKET WIRE) -- 05/21/07 -- Matrixx Resource Holdings, Inc. (OTCBB: MXXR), announced today that it has agreed to acquire an additional interest in the Oil and Gas Prospect known as the Clovelly Prospect.
Matrixx has signed a purchase agreement to acquire an additional eleven percent (11%) working interest for a total of a sixteen percent (16%) working interest in the Clovelly Prospect. 3D Seismic survey of the property has caused for a plan test of the "P" Sand at approximately 14,700 feet, and if successful, would expect significant reserves in the well to an anticipated 11 million barrels of oil.
The well was originally drilled by Grey Wolf (NYSE: GW) under a turnkey contract with the operator to test the "M" at 13,500 feet. After not reaching the "M" sand at 13,500, the operator and its partners have agreed to continue to drill to approximately 14,200 feet to reach the "M" sand and to test the "P" sand. After drilling to 14,280 feet, we reached what is known as a stringer sand as well as a drilling break. A stringer sand is one that has evidence of oil in the sand. A "drilling break" is defined as encountering "reservoir quality sand" and pressure, in this case, gas was entering the well bore.
At that point the gas pressure could not be regulated properly, therefore the well had to be plugged and abandoned for both safety and logistical reasons.
After carefully reviewing the available options, it had been determined to initiate several courses of action. Certain discoveries and findings while drilling the No. 2 well has caused drilling a "twin" hole to become a certain and viable option. A twin hole is described as drilling a well adjacent to an existing well, such as the No. 2 well. Additionally, for economical feasibility, it is planned to drill as soon as practicable, an additional well known as a PUD (Proven-Undeveloped) well up-structure to a target depth of 12,500. The PUD recoverable reserves are estimated at 250,000 barrels of oil with an upward potential of 500,000 barrels.
Drilling of the twin will take place to the expected "M" sand. The Company expects drilling of the twin to take place near the original well so that we may tap into the first gas discovery found; while, simultaneously at a distance as not to encounter unfavorable conditions as a result from the initial hole. This is done to maintain the integrity of the new drilling location.
The No. 2 well encountered a two foot gas discovery, but due to the location of the hole; the drilling may have occurred offset whereby an additional 28 feet of discovery may exist containing up to 5 BCFG (billion cubic feet of gas) valued at nearly $35 million. While the gas discovery might be considered as an added benefit, the intended cause of drilling the twin is primarily to target what is known as the "M" sand at or about 14,300 feet to 14,500 feet with a prospective size of 10 to 11 million barrels of oil.
Located 35 miles southwest of New Orleans in the Lafourche Parish, the Clovelly Field is a late piercement salt dome that traps hydrocarbon from Late to Middle Miocene time. Since its discovery in 1950, the field has produced in excess of 30 MMBO (Million barrels of oil) and 200 BCFG (Billion cubic feet of gas). Reservoirs typically exhibit moderate water drives and benefit from water and/or gas injection. Stone Energy Corporation (NYSE: SGY) has redeveloped the eastern flank of the field with additional drilling and water injection. Similar opportunities exist here at our proposed location.
Matrixx has remained steadfast in its efforts in acquiring growth and investment opportunities in the oil and gas sector with the intent of providing the Company and its shareholders a much-improved increase in shareholder value. Additionally, the Company is now positioned to aggressively exploit its properties to accelerate cash flow and to provide rapid returns on its investments in the oil and gas sector.
Safe Harbor Statement: This press release contains forward-looking statements as defined in The Private Securities Litigation Reform Act of 1995 (the "Act"). In particular, when used in the preceding discussion, the words "plan", "confident that", "believe", "scheduled", "expect", or "intend to", and similar conditional expressions are intended to identify forward-looking statements within the meaning of the Act and are subject to the safe harbor created by the Act. Such statements are subject to certain risks and uncertainties, and actual results may differ materially from those expressed in any forward-looking statement. Such risks and uncertainties include, but are not limited to, the ability of Matrixx to sell the applicable products and the acceptance of those newly designed products by the market, market conditions, the general acceptance of the Company's products, competitive factors, timing, and other risks described in the Company's SEC reports and filings.
Contacts: Matrixx Resource Holdings, Inc. Konstantine Tsakumis Media & Investor Relations (347) 647-1508 Email: ir*mrhi.net Website: www.mrhi.net
-------------------- The difference between genius and stupidity is that genius has its limits Posts: 10204 | From: NYC | Registered: Mar 2006
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CHID(.20) Announces Financial Results for Q1 2007 May 21, 2007 4:31:00 PM LOS ANGELES and SHENZHEN, China, May 21 /PRNewswire-FirstCall/ -- China Digital Communication Group (OTC Bulletin Board: CHID), a manufacturer of battery components in China, announced today financial results for the first quarter of fiscal year 2007.
Revenue for the quarter was $1,639,000, a decrease from $3,184,000 for the same quarter last year. Net loss for the quarter was $1,012,510 or $0.02 per share versus net income of $737,000 or $0.01 per share for the comparable quarter last year. The loss for the first quarter of 2007 included a non-cash expense of $1,296,000 associated with the impairment of goodwill. The decrease in sales for the quarter was attributable to a decrease of purchase orders from E'Jenie customers due to increased competition in the market.
Xu Zhongnan, CEO of China Digital Communications Group, said, "As anticipated, we experienced a decline in revenue this quarter compared to the same period last year. Though we recorded a net loss this quarter, it was primarily attributable to a non-cash impairment charge of approximately $1.3 million. Despite top-line weakness, we generated $382,000 in cash flow from operations for the quarter and ended the quarter with $1,071,000 in cash, giving us the flexibility to continue our previously announced strategic repositioning.
"We are continuing our search for promising acquisition candidates. We believe that our strong balance sheet allows us to pursue these opportunities aggressively and we will provide more details on our efforts as appropriate. At the same time, we are working diligently to stabilize sales at E'Jenie as we actively seek new customers. We look forward to keeping our investors updated on our progress on both fronts over the coming months."
About China Digital Communication Group
China Digital Communication Group owns Shenzhen E'Jenie Science and Technology Development Co. Ltd. E'Jenie manufactures and sells advanced high-quality lithium-ion battery shell and cap products to all major lithium-ion battery cell manufacturers in China and has recently begun manufacturing complete batteries. E'Jenie's products are used to power mobile phones, MP3 players, laptops, digital cameras, PDAs, camera recorders and other consumer electronic digital devices. China Digital Communication Group is continuing to seek acquisitions in new global markets, including the United States. For more information, visit http://www.chinadigitalgroup.com or contact Jacky Jiang of China Digital Communication Group at (626) 432-5427, e-mail: chinacso*chinadigitalgroup.com.
For investor relations information regarding China Digital Communication Group, contact Frank Hawkins or Ken AuYeung, Hawk Associates, at (305) 451-1888, e-mail: info*hawkassociates.com. An online investor kit including press releases, current price quotes, stock charts and other valuable information for investors may be found at http://www.hawkassociates.com and http://www.americanmicrocaps.com. To receive free e-mail notification of future press releases for this company, sign up at http://www.hawkassociates.com/email.aspx.
Forward-looking statement: Except for the historical information, the matters discussed in this news release may contain forward-looking statements, including, but not limited to, factors relating to future sales. These forward-looking statements may involve a number of risks and uncertainties. Actual results may differ materially based on a number of factors, including, but not limited to, uncertainties in product demand, risks related to doing business in China, the impact of competitive products and pricing, changing economic conditions around the world, release and sales of new products and other risk factors detailed in the company's most recent annual report and other filings with the Securities and Exchange Commission.
Investor Relations Contact: Hawk Associates, Inc. Frank Hawkins and Ken AuYeung Phone: (305) 451-1888 E-mail: info*hawkassociates.com http://www.hawkassociates.com SOURCE China Digital Communication Group
---------------------------------------------- Frank Hawkins and Ken AuYeung both of Hawk Associates Inc. +1-305-451-1888 info*hawkassociates.com for China Digital Communication Group
-------------------- The difference between genius and stupidity is that genius has its limits Posts: 10204 | From: NYC | Registered: Mar 2006
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SNTKY(.341) First Quarter 2007 Revenue and Net Income Increase Sharply on Grant of Paid Up License Company Has $24 Million in Cash on Hand NAPA, Calif., May 21 /PRNewswire-FirstCall/ -- Senetek PLC (OTC Bulletin Board: SNTKY), a life sciences product development company targeting the science of aging, announced financial results for the quarter ended March 31, 2007:
Revenue for the quarter ended March 31, 2007 was $25,308,000, compared with $2,269,000 reported in the first quarter of 2006. Revenues for the first quarter of 2007 included $24,750,000 recognized in conjunction with the previously announced grant of a paid up license for Kinetin and Zeatin to Valeant Pharmaceuticals Inc.
Net income for the quarter ended March 31, 2007 totaled $21,733,000 or $0.36 per share compared to a net loss of $13,000, a loss of less than $0.01 per share in the first quarter of 2006. Net income for the quarter ended March 31, 2007 included the effect of the previously announced grant of a paid up license for Kinetin and Zeatin to Valeant Pharmaceuticals Inc. and $1,312,000 from settlement of claims against a professional services provider for past performance related matters. The net loss for the quarter ended March 31, 2006 included a $927,000 non-cash expense for the write-off of the debt discount on retirement of the Senior Secured Notes and a $250,000 gain on the sale of Reliaject(R) assets.
Cash flow from operations for the quarter ended March 31, 2007 was $22,855,000 compared with $2,000 used in first quarter 2006 operations.
'Senetek is in the strongest financial condition that we have enjoyed in many years,' said Frank J. Massino, Senetek's Chairman and CEO. 'Our recently announced agreement with Valeant is the first step in a new strategic direction that will enable accelerated development of our rich pipeline of proprietary compounds, an ability to acquire products, emphasis on larger economic benefits through direct marketing efforts of new products, and the targeting of unmet needs in the lucrative and growing prescription dermatological therapeutic market.'
The Company will announce the date and time of a teleconference call for investors in the near future.
About Senetek PLC
Senetek PLC (OTC Bulletin Board: SNTKY) is a life sciences product development company with a portfolio of intellectual properties targeting the science of aging, including skincare and dermatological therapeutics, erectile dysfunction and nutrition. Kinetin, Senetek's lead commercial product, is currently licensed and marketed by 14 pharmaceutical and cosmeceutical companies, and Senetek has entered into an exclusive global license with Valeant Pharmaceuticals for Senetek's proprietary anti-aging skincare compound Zeatin. In addition, Senetek has entered into exclusive licenses for Europe and North America, respectively, for its patented combination drug treatment for erectile dysfunction, Invicorp(R), has an exclusive manufacturing distributorship for its proprietary diagnostic monoclonal antibodies, and recently sold, with retained rights of profit participation, its patented drug delivery system, Reliaject(R).
This news release contains statements that may be considered 'forward- looking statements' within the meaning of the Private Securities Litigation Reform Act, including those indicating the financial outlook for fiscal 2007 and those that might imply commercial potential and successful evaluation and development of new compounds. Forward-looking statements by their nature involve substantial uncertainty, and actual results may differ materially from those that might be suggested by such statements. Important factors identified by the Company that it believes could result in such material differences are described in the Company's Annual Report on Form 10-K for the year 2006. However, the Company necessarily can give no assurance that it has identified or will identify all of the factors that may result in any particular forward- looking statement materially differing from actual results, and the Company assumes no obligation to correct or update any forward-looking statements which may prove to be inaccurate, whether as a result of new information, future events or otherwise.
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PRVH(.063) Reports Q3 FY '07 Financial Results Net Income $2.3M or $0.01 EPS Providential Holdings, Inc. (OTCBB: PRVH) (German Stock Exchanges: PR7, WKN 935160), a company investing in the rapidly growing economies in Vietnam and Asia, today reported its financial results for the third quarter ended March 31, 2007.
The company reported revenues of $2.5 million in fees from consulting and advisory services for the quarter, as compared with total revenues of $127,100 for the same period last year. The increase in revenues during the current quarter is attributed to merger advisory services Providential provided.
Net income for the quarter was $2.3 million or $0.01 earnings per share, compared to a net loss of $186,049 or $0.00 earnings per share in Q3 '06. The increase in net income is primarily due to a $2.4 million increase in consulting income and a $103,043 increase in other income for the quarter. Total operating expenses were $216,189 in Q3 '07, compared to $243,132 in Q3 '06.
Providential Chairman and CEO Henry Fahman said, "This is an exciting time for Providential as the rapid and consistent growth of the Vietnamese economy has increased the need for consulting and advisory services, such as those Providential offers. We strengthened our balance sheets, increasing our total assets from $2.9 million in the second quarter to $6.7 million. We reduced total liabilities from $4.2 million in the second quarter to $3.9 million in the third quarter.
"During the third quarter, Providential's subsidiary, Providential Capital, launched a US $100 million private equity fund to finance Vietnamese companies seeking to go public in Vietnam and the U.S., including state-owned enterprises that are being privatized.
"In addition, the company recently signed an agreement with the People's Committee of Quang Nam Province and brought in an expert architectural design team to study and establish a master plan for the development of a 5,000-hectare area (about 12,500 acres) of South Hoi An, which will include facilities and services in the support of tourism, recreation, wellness, education, culture, spirituality, shopping, multi-grade housing, conventions, dining and finance. This project is adjacent to the one undertaken by Dubai Holding (www.dubaiholding.com).
"With connections and expertise in both local and international capital markets, Providential has become the preferred partner of many high quality companies looking for growth acceleration and will continue to focus on areas that potentially create superior value for our partners, shareholders and investors."
About Providential Holdings, Inc.
Providential Holdings and its subsidiaries engage in a number of diverse business activities, the most important of which are M&A advisory services and investments in the rapidly growing economies in Vietnam and Asia. For more information on Providential Holdings and its subsidiaries, visit http://www.phiglobal.com. As part of its activities in Vietnam, Providential has been hosting seminars in conjunction with the Nasdaq Stock Market, the Vietnamese Chamber of Commerce and Industry and several leading U.S. investment banking firms, to help Vietnamese companies go public and raise capital through the U.S. financial markets.
Safe Harbor: This news release contains forward-looking statements that are subject to certain risks and uncertainties that may cause actual results to differ materially from those projected on the basis of such forward-looking statements. Such forward-looking statements are made based upon management's beliefs, as well as assumptions made by, and information currently available to, management pursuant to the "safe-harbor" provisions of the Private Securities Litigation Reform Act of 1995.
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Investor Relations Contact: Hawk Associates, Inc. Frank Hawkins or Julie Marshall Phone: (305) 451-1888 E-mail: Email Contact
-------------------- The difference between genius and stupidity is that genius has its limits Posts: 10204 | From: NYC | Registered: Mar 2006
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ITEM 2. MANAGEMENT'S DISCUSSION AND ANAYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS GENERAL
Family Room Entertainment Corp. ("FMLY") is engaged in various aspects of the motion picture entertainment industry, including development, production, and production services. FMLY develops, produces and performs production related services for the motion picture entertainment industry mainly through the following three wholly-owned subsidiaries [Emmett/Furla Films]: (1) Emmett/Furla Films Productions Corporation ("EFFP"), a California Corporation involved in motion picture development, production, and production related services for high budget motion pictures (in excess of $20,000,000 to $50,000,000). EFFP's subsidiary, Good Entertainment Service, Inc. ("GESI"), a Delaware Corporation, was originally a production servicing company and produced one motion picture "Good Advice" in the year 2000. Currently GESI is the subsidiary that signs with the film and entertainment industry guilds when the contracted resource is a member of such guild; (2) Emmett Furla Films Distribution LLC, (EFFD) is a Delaware Limited Liability Company set up to contract with third parties for the world wide distribution and/or exploitation of FMLY's wholly owned and or controlled entertainment properties, and (3) EFF Independent, Inc. ("EFFI") a California Corporation, is setup primarily to develop and provide production related services for low budget motion picture (less than $20,000,000).
Critical Accounting Policies and Estimates
The Company follows the American Institute of Certified Pubic Accountant's Statement of Position ("SOP") 00-02 "Accounting by Producers and Distributors of Films". See Note 1 to the Consolidated Financial Statements contained in the Annual Report on Form 10KSB of Family Room Entertainment Corporation (the "Company") for the year ended June 30, 2006
Our discussion and analysis of financial condition and results of operations is based upon our consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America. The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenue and expenses, and related disclosure of contingent assets and liabilities. On an ongoing basis, we evaluate our estimates. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances. These estimates and assumptions provide a basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions, and these differences may be material.
We believe the following critical accounting policies affect its more significant judgments and estimates used in the preparation of its consolidated financial statements.
Revenue Recognition
We recognize revenue from the development, production, and production services earned under the criteria established by SOP 00-2 as follows:
Producers Fees - Producer fees are recognized upon receipt of the fees and delivery of the related services. If upon receipt of the fees all services have not been provided, the fees are deferred and recognized as the services are performed;
Royalties - Royalty and profit participation are recognized when the amounts are known and the receipt of the royalties is reasonably assured. Accordingly, recognition generally occurs upon receipt (usually quarterly or semi-annually); and
Producer Development and Production Service Fees - As these services are provided, these fees are invoiced by FMLY to the third party financiers and producers and are recognized when the amount has been determined and receipt is reasonably assured.
Film Costs
Film costs include costs to 1) acquire rights or films, 2) project development (the process whereby underlying material, such as a book, manuscript or screenplay, are made ready for production into a motion picture by creating a finished screenplay which takes in to account the desires of the creative elements as well as the constraints of the budget and production schedule), 3) project packaging (the process whereby creative elements, such as directors and actors, are attracted to and agreements are made for them to perform their services in connection with the picture), and/or 4) produce feature motion pictures.
Production costs mainly consist of acquisition costs, salaries, equipment, and overhead. Production costs in excess of the amounts reimbursable by the actual production entity are capitalized. Once production on a particular film project commences, FMLY begins to derive producer fees. FMLY's primary source of revenue is motion picture production fees. Production costs capitalized on a particular film project are amortized in the proportion that the revenue received during a period bears to the anticipated total gross revenues for that film. Estimates of anticipated total gross revenues for all film projects are reviewed periodically and revised when necessary. Un-amortized film production costs are also compared with net realizable value each reporting period on a film-by-film basis. If estimated gross revenues are not sufficient to recover the un-amortized film production costs, the un-amortized film production costs are written down to their estimated net realizable value.
Exploitation Costs
All exploitation costs, including marketing costs, are expensed as incurred. During the nine months ended March 31, 2007 and 2006, FMLY incurred general operating costs of $ 63,351 and $ 159,118 respectively.
Estimates of unaccrued ultimate participation costs, if any, are used in the individual-film-forecast-computation to arrive at current period participation cost expense. Participation costs are determined using assumptions that are consistent with FMLY's estimates of film costs, exploitation costs, and ultimate revenue. If, at any balance sheet date, the recognized participation costs liability exceeds the estimated unpaid ultimate participation costs for an individual film, the excess liability is reduced with an offsetting credit to unamortized film costs. To the extent that an excess liability exceeds unamortized film costs for a film, it is credited to income. Participation costs are not currently a factor on any of FMLY's film projects.
Plan of Operation
Our short-term objective:
To produce and/or to provide production related services in connection with genre specific motion pictures with moderate production costs in the $1 million to $50+ million range.
Our long-term objectives:
FMLY's goal, through EFFP and EFFI, is to facilitate relationships (and as such, provide production related services) between creative talent (including writers, actors and directors) and companies who produce, finance and distribute motion pictures. As mentioned, FMLY acquires or licenses rights to materials upon which it believes motion pictures can be based (screenplays, books, etcetera, which are referred to within the entertainment industry as the "underlying property"). FMLY may further develop an underlying property by contracting for additional writing services and/or by bringing in new writers to perform "polishes" or "rewrites" on a particular underlying property. If FMLY is satisfied with the creative state of the underlying property, it will then make offers to directors and/or actors, to perform services in connection with a particular motion picture based on that underlying property. These offers are very often contingent and subject to the satisfaction of certain production elements, such as financier approval of the screenplay and the financier's selection of a start date for principal photography. If a director or actors accepts one of FMLY's offers, the director or actors are said to be "attached" to the motion picture project. Armed with the underlying property and the attached creative element(s) (these elements are often called the "package" in Hollywood), FMLY may then approach third party financiers seeking financing as well as distribution for the potential motion picture. Another approach that FMLY may take is to contact the financiers first, seeking first to produce the film, and then with a finished (or nearly finished) motion picture product, obtain distribution for the picture.
FMLY has financed operations through the sale of common stock and through financing from financial institutions. In order to sustain operations in the near term, it is anticipated that motion pictures through FMLY via production services and/or produced by FMLY will be entirely financed through outside sources. In April 2004, we received $644,455 in funds pursuant to a subscription agreement. Additionally, on November 17, 2004, we issued $2,000,000 in convertible notes, receiving net proceeds of $1,710,652 pursuant to a subscription agreement. Additionally in March, 2006, we issued a $400,000 convertible note and film entertainment consulting agreement due march 1, 2007.
From October 2004 through May 2005, we received an aggregate of $4,429,719 from Tau Entertainment (Elisa Salinas) to invest in various film projects. During December 2006, though Tau Entertainment ( Elisa Salinas) we received $1,300,000 on film projects. On June 27, 2005 we received $500,000 from Scorched Earth to invest tin the Borderland USA project. The agreements executed by these investors call for certain investor to receive: (a) a 7% one time finance fee and (b) 8% annual interest on their respective investments. Investors will also be permitted to designate certain pre-negotiated credits in connection with the picture as well as participate in the Net Profits (net profits is generally defined as monies remaining after all negative costs, distribution fees and costs in connection have been recouped, paid and/or reserved against). The investors will participation in the net profits of the picture on a proportional basis to their investment.
Freedom Films invested $2,000,000 in May 2005 directly into Borderland USA. This agreement calls for Freedom Films to get a proportional share of net profits generated by the movie.
FMLY'S future capital requirements will depend on numerous factors, including the profitability of our film projects and our ability to control costs. We believe that our current assets will be sufficient to meet our operating expenses and capital expenditures to the successful commercialization of our existing and future film projects. However, we cannot predict when and if any additional capital contributions may be needed and we may need to seek one or more substantial new investors. New investors could cause substantial dilution to existing stockholders (see liquidity and capital resources below for additional discussion).
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-------------------------------------------------------------------------------- RESULTS OF OPERATIONS Three Months ended March 31, 2007 versus Three Months ended March 31, 2006
The Company's operating revenue for the three months ended March 31, 2007 was $1,527,709 as compared to $121,203 for the three months ended March 31, 2006, for a increase of $1,406,506 (1,160.5%) The increase was mainly attributed to increase in film revenues, i.e., some films when into production during the quarter and the related production fees were received.
Costs relating to the operating revenues were $944,157 for the three months ending March 31, 2007 as compared to $205,157 for the three months ending March 30, 2006, an increase of $739,000 (360.2%). These costs mainly consist of film amortization (Rambo IV amortization was $841,444 of the total), and write off of film costs for the respective time period (See Note 5 for detail).
The Company's gross margin for the three month period ending March 31, 2007 was $583,522 as compared to $(83,954) for the three month period ending, March 31, 2006, an increase of $667,506 (795.0%). The increase in Gross Margin is directly attributable to the fluctuations in film revenues and film amortization for the respective time periods.
Selling, general administrative expenses for three months ended March 31, 2007 was $297,476 as compared to $587,886 for three months ended March 31, 2006, for a decrease of $290,410 (49.4%). The decrease was attributable to decreases in: 1) salary, wages and related expenses of $22,337 (18.0%), 2) airfare of $9,295 (70.5%), 3) office overhead of $42,134 (15.3%), 4) phone and internet expenses of $2,114 (13.9%), 5) automobile of $54,517 (82.8%), 6) professional fees of $135,619 (65.8%), 7) promotion/Publicity of $23,846 (95.1%) and miscellaneous items of $548 (1.3%).
Other income (expense) was $63,104 for the three months ended March 31, 2007, as compared to $149,565 for the same period in the prior year, a decrease in income of $86,461 (57.8%). This decrease was primarily the result of interest expense of $308,594 for which there was no equivalent expense for same period ending March 31, 2006, offset by an increase in the change in value of derivatives from $121,868 for the three months ended March 31, 2006, to $371,103 for the three months ended March 31, 2007, an increase of $249,235 (204.5%). Other expense was lower in the current year due to conversion of convertible debt that created a reduction in the value of derivative liabilities, reduced by an increase in interest expense triggered immediate recognition of deferred loan costs and accelerated accretion of debt discount as components of interest expense.
The Company reported a net profit of $349,180 for the three months ended March 31, 2007 as compared to a net loss of $ (522,275) for the same period ended March 31, 2006, an increase in profit of $871,455 (166.9%).
Nine Months ended March 31, 2007 versus Nine Months ended March 31, 2006
The Company's operating revenue for the nine months ended March 31, 2007 was $1,555,845 as compared to $2,421,032 for the nine months ended March 31, 2006, for a decrease of $875,183 (36.0%). The decrease was mainly attributed to a decrease in film revenues in the first two quarters when no films when into production. During the third quarter production fees were received for Rambo IV. The 2006 revenue is from producers/royalty fees from the following films; 1) "Wickerman", 2) "The Contract", 3) "88 Minutes" and 4) "The Tenant".
Costs relating to the operating revenues were $1,716,395 for the nine months ending March 31, 2007 as compared to $2,755,028 the nine months ending March 31, 2006, a decrease of $1,038,637 (37.7%). These costs mainly consist of film amortization and write off of film costs for the respective time period (See Note 5 for detail).
The Company's gross margin for the nine month period ending March 31, 2007 was $(160,550) as compared to ($324,032) for the nine month period ending March 31, 2006, an increase of $163,454 (50.4%). The increase in Gross Margin is directly attributable to the fluctuations in film revenues and film amortization for the respective time periods.
FMLY's selling, general administrative expenses for nine months ended March 31, 2007 was $1,053,555 as compared to $1,241,572 for nine months ended March 31, 2006, for a decrease of $188,017 (15.1%). The decrease was attributable to a decreases in: 1) travel and entertainment of $1,256 (42.3%), 2) airfare of $24,621 (70.9%), 3) office overhead of $28,369 (23.9%), 4) telephone and internet expenses of $1,929 (4.2%), 5) automobile expenses of $10,114 (12.2%), 6) professional fees of $67,552 (20.1%), 7) promotion/publicity of $93,035 (90.5%), and 8) miscellaneous items $4,151 (4.49%) offset by 1) Salaries, wages and related expenses of 23,695 (6.2%) and 2) administration and SEC related offices expenses $18,877 (86.5%).
Other income (expense) was $(25,258) for the nine months ended March 31, 2007, as compared to ($269,218) for the nine months ended March 31, 2006, a decrease in expense of $243,960 (90.6%). This decrease was primarily the result of an increase in income from the change in value of derivatives to $580,011 for the nine months ended March 31, 2007, from $209,229, an increase of $370,782 (177.2%), offset by interest expense of $608,756 as compared to interest expense of $480,099 for same period ending December 31, 2005, an increase of $128,657 (26.8%). Other expense was lower in the current year due to conversion of convertible debt that created a reduction in the value of derivative liabilities, reduced by an increase in interest expense triggered immediate recognition of deferred loan costs and accelerated accretion of debt discount as components of interest expense.
The Company reported a net (Loss) of $( 1,239,363) for the nine months ended March 31, 2007 as compared to a net loss of $(1,834,794) for the same period ended March 31 , 2006, a decrease of $595,431 (32.5 %).
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-------------------------------------------------------------------------------- LIQUIDITY AND CAPITAL RESOURCES Net cash used by operating activities for the nine months ended March 30, 2007 amounted to $ (1,721,421) which mainly consists of the net loss of $1,239,363 plus the following: 1) $580,011 derivative valuation adjustment, 2) amortization of loan costs of $47,940, 3) $200,000 decrease in accounts receivable, and 4) an increase of $2,503,508 in film costs offset by 1) depreciation expense of $20,701, 2) accretion of convertible debt discount of $511,462, 3) amortization of film costs of $1,716,384, 4) common stock issued for payment of interest of $124,599, 5) common stock issued for professional services and compensation of $159,581, 6) other assets of $24,295 and 7) an increase in account payable of $288,019. Net cash used by investing activities for the nine months ending March 31, 2007 amounted to $31,147 which was mainly attributed to the release of restricted cash of $51,033 offset by the purchase of office equipment of $19,885.
Cash provided by financing activities amounted to $1,042,106. This consisted of 1) proceeds from advances under development agreements of $1,300,000 offset by 1) purchases of the Company's own common stock of $72,894 and 2) payments on notes of $185,000.
In its normal course of business as a film entertainment producer who provides production service, FMLY makes contractual commitments to acquire film rights and make payment for options to purchase properties (i.e. scripts and/or books). These contractual obligations and option payments, if any, can range from $10,000 to $250,000. At March 31, 2007 FMLY had outstanding commitments of approximately $250,000.
The important matters on which FMLY focuses in evaluating its financial condition and operating performance are the return on investment, but just as important are the quality of the movie projects we are involved in and the quality of the parties that are involved in those projects with us.
With the exception of publicity and marketing fees, FMLY's operating costs are fairly fixed. To absorb these costs and to generate a profit, FMLY takes on as many projects as possible. Factors that FMLY takes into consideration before accepting a project are: 1) is the material (script) good enough to attract talent, 2) whether talent be can obtained, and 3) whether financing can be arranged.
FMLY's evaluation of return on investment is a two-phase process. In the first phase we evaluate the project against the resources that we have available to determine if we can arrange for talent, directors and/and or production and/or distribution financing. Once a suitable project is identified, our decision on participation in that project is based our ability to recover projected costs, including our option on the project, development costs and our producer fees. We generally seek to obtain producers fees and a net profit participation that we believe will provide ten times the cost of our option on the project and our related development costs. Although our target return is on investment is high, we believe that it is necessary because it helps cover the cost of closed or abandoned projects.
Estimated future cash requirements
FMLY's estimate of net cash requirements for overhead for the next twelve months subsequent to March 31, 2007 approximately $ 80,000 a month for a twelve total of $1,380,000. The Estimate of cash inflow (net of film cost and fees) from operations for that time period from projects currently in place is estimated to be approximately $2,000,000. We are unable to estimating beyond this twelve month period because we are still in negotiation on a number of projects.
FMLY has financed operations through the sale of common stock and through financing from financial institutions. In order to sustain operations in the near term, it is anticipated that motion pictures produced by FMLY will be entirely financed through outside sources. In December, 2006, FMLY received $1,300,000 from Tau Entertainment ( Elisa Salinas), an investor for the production of the movie "King of California". The investor is to recoup the investment from distribution advances. On October 6, 2004, the Company received $1,300,000 from Tau Entertainment (Elisa Salinas), an investor, for the production of the movie "The Tenant". The investor is to recoup the investment within four months following the delivery of the picture to the worldwide distributor (which is estimated to be June 14th, 2006) at 4% interest plus 50% of the net profits of the underlying movie. The funds advanced under the agreement are restricted to use in the production of "The Tenants" In March 2006 FMLY repaid Tau Entertainment ( Elisa Salinas) the $1,300,000. In March 2005 the Company received an additional $2,179,719 advance from Elisa Salinas under terms similar to the original $1,300,000 advance. The $2,179,719 advance is restricted to use and has been invested in the productions of: $1,719,719 in Borderland, $250,000 in Wickerman, and $130,000 in Room Service as of December 2005. At December 31, 2005, Freedoms Films has invested $2,148,895 in Borderland and in 2006 invested an additional $206,297., Scorched Earth invested $500,000 in Borderland, and additional $72,500, and E F F Partners, LLC invested a total of $800,000 with $346,514, in White Air, $68,486, in The Tenant, $300,000 in Day of the Dead, and $85,000 in Rin Tin Tin...
FMLY'S future capital requirements will depend on numerous factors, including the profitability of FMLY's film projects and ability to control costs. As shown above, FMLY believes that current assets will be sufficient to meet our operating expenses and capital expenditures to the successful commercialization of our existing and future film projects. However, we cannot predict when and if any additional capital contributions may be needed and we may need to seek one or more substantial new investors. New investors could cause substantial dilution to existing stockholders
Going Concern
As shown in the accompanying financial statements, the Company has incurred recurring losses from operations, and as of March 31, 2007, the total liabilities exceeded its total assets by $ 1,161,643. These factors raise doubt about the Company's ability to continue as a going concern. Management has instituted a cost reduction program that included a reduction in staffing, general overhead and related fringe costs and has instituted more efficient management techniques. In addition, the Company has movie projects in various stages of development which should generate additional cash flow over the next several months. Additionally, the Company has been able to obtain additional capital through the issuance of debt or equity. The Company has an ongoing requirement for additional capital investment, and historically management has been able to obtain additional financing to meet its working capital needs. The accompanying financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.
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CINT(.035) IntelliFares(TM) and Mexicana Enter Development Pact MORRISTOWN, N.J., May 21 /PRNewswire-FirstCall/ -- Crystal International Travel Group, Inc. (OTC Bulletin Board: CINT) CEO Fabrizzio P. Busso-Campana announced today the company has entered a thirty-day exclusivity period with Mexicana Airlines to finalize terms of a partnership program with Crystal's IntelliFares service.
Mr. Busso-Campana explained 'although it is too early to tip our hand, we are working together to provide the best long term value for our customers, combining the advance planning features of IntelliFares with the highest quality air service from the US west coast to Mexico that Mexicana has to offer.' Jorge Goytortua, Regional Vice President of the airline added 'we have no doubt that our partnership on this program will be one of mutual success and growth.' Both company spokesmen indicated their belief that a combination of preferred pricing and the airline's distribution footprint would provide the accessibility and value Predictable Pattern Travelers are looking for. They intend to make details of the partnership program available by mid to late June.
About IntelliFares(TM)
IntelliFares is a unique, travel product where Predictable Pattern Travelers (Timeshare and vacation homeowners, frequent cruisers, college students) can purchase 'five years of travel at less than today's price.' The patent pending process integrates forward and bulk purchasing disciplines with financial management methodology in partnership with UBS in order to lock in a ticket air price for the consumer over a five-year time period. It also provides a revenue share for distributors, reversing the decline in commissions available to the airline ticket distribution community. Details can be found at www.intellifares.com.
About Mexicana de Aviacion
Mexicana de Aviacion began its operations more than 85 years ago and it is therefore the airline with the fourth longest tradition in the world. Currently, it is the airline with the most extensive international coverage from Mexico and the leading transportation company between Mexico and the United States. From its operation hub in Mexico City International Airport, Mexicana flies to around 50 destinations in North, Central, and South America and the Caribbean. Its code share agreements with leading international airlines, represents a great benefit for its passengers with the accumulation and redemption of miles, access to its executive lounges, a range of connection possibilities and coordinated schedules with an extensive route network that covers a large portion of the world. Having the most modern fleet in the world has allowed it to maintain one of the highest on time performance levels, and enabled it to reach the highest utilization rate of its Airbus fleet, with an average daily operation of 12:52 hours. Mexicana has the best maintenance base in Latin America. And for the second consecutive time its been recognized with the World Travel Awards 2006 as the best Business Class in Mexico and Latin America, in addition to receiving the award as the leading airline for ninth consecutive years in the same region. On July 1st, 2005, Mexicana launched its low-cost airline, Click Mexicana, which offers the most competitive fares. Click serves 23 domestic routes and its fleet is comprised of 14 Fokker 100 aircraft with state-of-the-art equipment with the most advanced technology available in the industry. For more information visit: www.mexicana.com and www.clickmx.com
Safe Harbor Statement This press release contains forward-looking statements, which are made pursuant to the Safe-Harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect the views of Crystal International Travel Group, Inc. s (the 'Company') management regarding current expectations and projections pertaining to future events and are based on currently available information. The statements involve a number of risks and uncertainties, including the Company's ability to generate sufficient sales for IntelliFares, the completion of its negotiations and product offering development with Mexicana and other factors described in the Company's respective filings with the Securities and Exchange Commission. Other unknown or unpredictable factors also may have material adverse effects on Crystal's business, financial conditions and results of operations. Accordingly, readers should not place undue reliance on these forward-looking statements. The use of words such as anticipates, estimates, expects, is in process, intends, plans and believes, among others, generally identify forward-looking statements; however, these words are not the exclusive means of identifying such statements. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances are forward-looking statements and are inherently subject to uncertainties, risks and changes in circumstances that are difficult to predict. The Company is not under any obligation and does not intend to publicly update or review any of these forward-looking statements, whether as a result of new information, future events or otherwise, even if experience or future events make it clear that any expected results expressed or implied by those forward-looking statements will not be realized.
-------------------- The difference between genius and stupidity is that genius has its limits Posts: 10204 | From: NYC | Registered: Mar 2006
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MNAB(.011) Announces U.S. Soccer Portal Monolith Athletic Club, LLC. (PINKSHEETS: MNAB) announced today its intention to develop and launch the premier U.S. soccer portal linking organizations, its players and managers with youth, high school, and college players and managers. The portal will provide approved premier online soccer training programs for players, coaches, associations, parents and teachers of the game and intends to create a centralized U.S. soccer community whose ultimate goal is to enhance U.S. soccer at the domestic and international levels. The portal intends to also host a robust fan/player interactive site with soccer subject chat rooms and bulletin boards managed by known U.S. and International soccer figures.
Monolith believes there is a clear need for full domestic collaboration among all levels and regions of U.S. soccer. Other than regional and national tournaments, no full service portal exists in the U.S. and this fact has created a local atmosphere which limits U.S. soccer development and progress at the international level. The United States has more official soccer players than any other nation in the world -- almost 18 million. Each player has 2 interested parents. So this site can minimally address a consistent annual data set of 50 million. The need is there, and so are the numbers.
The Company intends to develop the soccer portal with a model that will generate revenues from premium subscription based services and major advertisers.
About Monolith Athletic Club, LLC.
Monolith Athletic Club, LLC. is a sports and recreation holding and development corporation which focuses on creating, managing and building strong grassroots community programs through ownership of professional soccer franchises in the United States. Monolith is in its initial development stage. Soccer represents the largest growing contribution market segment in the U.S. The expansion of the sport on the professional level is predicated on the achievement of the strong working community involvement programs. It is anticipated that Monolith Athletic Club's primary focus will be on building those programs to support the professional franchises. Monolith's goal is to create a "cultural phenomenon" in the United States similar to Europe and around the globe. Monolith intends to bring the "World's Game" to the American youth through various athletic and education programs, with hope to raise the interest and fans' participation level of soccer. Additionally, Monolith anticipates competing with the United States' four "major" professional sports.
Safe Harbor
This news release may include comments that do not refer strictly to historical results or actions that may be deemed to be forward looking within the meaning of the safe harbor provisions of the U.S. federal securities laws. These include, among other things, statements about expectations of future business, revenues, cash flows and capital requirements. Forward-looking statements are subject to risks and uncertainties that may cause the company's results to differ materially from expectations. These risks include the company's ability to further develop its business, the company's ability to generate revenues, develop appropriate strategic alliances and successful development and implementation of its business plans, acceptance of the company's services, competitive factors, and other such risks as the company may identify and discuss from time to time. Accordingly, there is no certainty that the company's plans will be achieved.
For more information contact: Monolith Investor Relations 315-567-1358
-------------------- The difference between genius and stupidity is that genius has its limits Posts: 10204 | From: NYC | Registered: Mar 2006
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USXP (.0007) Announces Jackson Auction Dividend
Market Wire "US Press Releases "
NEW YORK, NY -- (MARKET WIRE) -- 05/22/07 -- Universal Express Inc. (OTCBB: USXP), today insured the Jackson Family Memorabilia Collection's movement, and it has "left the building" to Las Vegas. We have previously valued the auction estimates from $30,000,000 to $200,000,000.
No one can predict the outcome of this auction, but I thought it prudent to inform our shareholders of the percentages we have budgeted for them. We have estimated a cash dividend of at least 20% of the net proceeds to our shareholders and we have estimated at least 15% of our net proceeds to a buy back of Universal Express' stock on the open market.
There are many factors and collectors which will determine the final results. Yet, at the request of many I thought these percentages needed to be memorialized.
The Charities that will also benefit from this auction are as follows:
St. Jude Children's Research Hospital Make A Wish Foundation Boys and Girls Clubs of America Ronald McDonald House Save the Children
About Universal Express
Universal Express, Inc. is a 23-year-old logistics and transportation conglomerate with multiple developing subsidiaries and services. For additional information please visit www.usxp.com
Safe Harbor Statement under the Private securities Litigation Reform Act of 1995: The statements contained herein, which are not historical, are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements including, but not limited to, certain delays beyond the Company's control with respect to market acceptance of new technologies, products and services, delays in testing and evaluation of products and services, and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission.
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For Investor Relations Call:
Mark Falk Universal Express, Inc. 561-367-6177 Email Contact
-------------------- The difference between genius and stupidity is that genius has its limits Posts: 10204 | From: NYC | Registered: Mar 2006
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JMCP(.0001) Enters into Talks with Suitor for Wales Holding Corporation May 22, 2007 2:10:00 PM Copyright Business Wire 2007 KILLEEN, Texas--(BUSINESS WIRE)--
Frank Love, President of James Monroe Capital Corp. (Pink Sheets:JMCP), is pleased to announce that he has entered into talks with a suitor for Wales Holding Corporation. The directors of James Monroe Capital are defining a strategy with which to get the most benefit for all of the shareholders. The mining company is willing to wait for James Monroe Capital to finish its financing before it takes possession of the property.
Frank Love states, "If we accept their offer, our shareholders will receive shares in this mining company. The mining company has other assets other than our property. Specifically, they have an alluvial property located in South America that is extremely attractive and will be revenue-producing almost immediately. In addition, they are in the process of acquiring undervalued uranium assets that will make their company asset-rich. My advisors have shown me numerous reports that the price for uranium should grow exponentially in the next decade as demand for it increases due to China and India's growth as well as due to the deterioration of the environment.
"This sale will also allow our Ghanaian mine to get financed and be put into full-production and their management team can focus on that whilst ours could focus on the oil projects. We will want some executives that we have worked with in the past to be appointed as directors in the company so our interests will be protected. No decision has been made as of yet but we will keep shareholders updated.
"On another note, I am pleased to announce that I am receiving numerous calls from European Institutions that are interested in our stock. In addition, many want to have deeper discussions about them buying a larger equity position in our company. Based on the assets that we have presently and the expected revenues from our oil deals, this amount could become quite substantial."
This press release does not constitute an offer of any securities for sale. This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements involve certain risks and uncertainties that could cause actual results to differ, including, the company's limited operating history and history of losses, the inability to successfully obtain further funding, inability to raise capital on terms acceptable to the company, the inability to compete effectively in the marketplace, the inability to complete the proposed acquisition and such other risks that could cause the actual results to differ materially from those contained in the company's projections or forward-looking statements. All forward-looking statements in this press release are based on information available to the company as of the date hereof, and the company undertakes no obligation to update forward-looking statements to reflect events or circumstances occurring after the date of this press release.
Source: James Monroe Capital Corp.
---------------------------------------------- James Monroe Capital Corp. Harold Engel 254-458-0473 info*chinookinvestmentgroup.com www.jmcpcorp.com
-------------------- The difference between genius and stupidity is that genius has its limits Posts: 10204 | From: NYC | Registered: Mar 2006
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