posted
Looking quickly through their past 10Q's, it also doesn't look very dilutive like most are in pennyland. Issued and outstanding hasn't changed much.
Posts: 215 | From: MA | Registered: Dec 2003
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posted
I have traded this company in the past and made 200% . I love their stock,...dont know why they are still trading this low.... all that is about to change. IMO
-------------------- Please do your DD. Break some bread with me! Posts: 1138 | From: atlanta | Registered: Apr 2006
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posted
Nice hammer forming..I got out a few with a small loss...will get back in once it breaks the 035 wall...there isn't a whole lot of volume on this I played it on the last run..did quite well...but it needs mucho volumen to get started. The CEO/Owner has a habit of attaching unrelated news to every feed he can get his hands on...little shady IMO. Good play nonetheless. Not a long play IMO until Armageddon happens
posted
Hey Tex, I'm still in this,...bought some more at the dips,...spoke with the Investor relation last week, and he confirmed that the company is in a 12 states tour, They are talking with companies and government.... Their last financial looks promising too...positive cash flow. I asked him if they will be coming out with any news regarding the outcome or any PR....he emphasized that they are waiting on news from the company and hopefully soon.
-------------------- Please do your DD. Break some bread with me! Posts: 1138 | From: atlanta | Registered: Apr 2006
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posted
Got some more today at .02 . called IR again today, and was told that the company will be coming up with news next week with updates on their national tour. he said "the company is using the tour to put itself before government and companies for contracts and market their Emergency Disaster Systems" I also asked them about any possible dilution and they reiterated that the company did dilution last year and is NOT doing any dilution.
I'm crossing my fingers and hoping their tour comes out with something positive next week.
-------------------- Please do your DD. Break some bread with me! Posts: 1138 | From: atlanta | Registered: Apr 2006
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posted
That's a LONG downtrend for such a low OS...
You guys sure there ain't something funky going on here?
Haven't done any DD...just looking at the chart and saying I a get a weird vibe from it.
-------------------- No longer eligible for government service due to lack of tax issues. Posts: 5178 | From: Up North | Registered: Dec 2005
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posted
I have no idea what MMs are doing with this stock. This company is getting murdered day by day. I think its time the company starts updating shareholders and investigating the trading activities.
-------------------- Please do your DD. Break some bread with me! Posts: 1138 | From: atlanta | Registered: Apr 2006
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quote:Originally posted by BENJAMINS: Called Equity solutions today and they said the quaterly financials should be out shortly.. either today or tomorrow.
Thanks for the heads up Benjamins. Posts: 616 | From: Mid West | Registered: Mar 2006
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Item 2. Management's Discussion and Plan of Operation Forward-Looking Statements
This Quarterly Report contains forward-looking statements about US Biodefense, Inc.'s business, financial condition and prospects that reflect management's assumptions and beliefs based on information currently available. We can give no assurance that the expectations indicated by such forward-looking statements will be realized. If any of our management's assumptions should prove incorrect, or if any of the risks and uncertainties underlying such expectations should materialize, UBDE's actual results may differ materially from those indicated by the forward- looking statements.
The key factors that are not within our control and that may have a direct bearing on operating results include, but are not limited to, acceptance of our services, our ability to expand our customer base, managements' ability to raise capital in the future, the retention of key employees and changes in the regulation of our industry.
There may be other risks and circumstances that management may be unable to predict. When used in this Quarterly Report, words such as, "believes," "expects," "intends," "plans," "anticipates," "estimates" and similar expressions are intended to identify forward-looking statements, although there may be certain forward-looking statements not accompanied by such expressions.
Overview
We were incorporated in the State of Utah on June 29, 1983, under the name Teal Eye, Inc. We merged with Terzon Corporation and changed our name to Terzon Corporation in 1984. We subsequently changed our name to Candy Stripers Candy Corporation. We were engaged in the business of manufacturing and selling candy and gift items to hospital gift shops across the country. We were traded Over-the-Counter Bulletin Board for several years. In 1986 we ceased the candy manufacturing operations and filed for Chapter 11 Bankruptcy protection. After emerging from Bankruptcy in 1993, we remained dormant until January 1998, when we changed our name to Piedmont, Inc. On May 13, 2003, we filed an amendment to our Articles of Incorporation to change our name from Piedmont, Inc. to US Biodefense, Inc. We are a registered government contractor with the Department of Defense Logistics Agency that is focused on designing ad developing homeland security and biodefense products.
During the year ended November 30, 2006, we impaired various licenses related to our stem cell research operations. This impairment was due to the resignation of our stem cell research department head and our inability to engage a replacement. As a result, we do not intend to continue to pursue stem cell research initiatives. However, we do intend to continue to evaluate additional biological research programs for the possibility of commercialization.
On August 7, 2006, we completed the acquisition of Emergency Disaster Systems, Inc., a California corporation incorporated on July 19, 2006. EDS provides mitigation services, emergency preparedness, and first response products to communities, government agencies, corporations and healthcare organizations. We purchased a 100% interest in EDS for an aggregate of $25,000 in cash. The EDS system, encompassing CERT bags, containers and cabinets was initially designed and originated by Charles Wright in 1989 to provide earthquake preparedness supplies to communities in California. EDS provides mitigation services, emergency preparedness, and first response products to communities, government agencies, corporations and healthcare organizations. The basic kits contain a three day supply of food and water rations, in addition to first aid, lighting, hygiene and personal care items and can be scaled for individual use or for a family. EDS also sells a stand-alone emergency radio siren product. We believe these items help mitigate a person's vulnerability to disasters such as fires, floods and earthquakes. EDS currently serves Emergency Medical Services and mass casualty rapid response systems, as well as local communities, government agencies and Fortune 500 companies with innovative emergency preparedness technology, systems and services. Charles Wright, with his 18 years of experience, currently serves as Vice President and Director of Emergency Disaster Systems, Inc., which is a wholly-owned subsidiary of US Biodefense.
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-------------------------------------------------------------------------------- Results of Operations Revenues
Our revenues are derived primarily from three sources: sales of tangible products, services and related parties. Sales of tangible products are attributable solely to Emergency Disaster Systems, Inc., our wholly-owned subsidiary that we acquired on August 7, 2006. Revenue from services is derived from the recognition of deferred revenues from stock received in advance for services to be performed by us to Diamond I. Finally, revenue from related parties is solely from our October 15, 2005 contract with Financialnewsusa.com, a related party, to provide biodefense-related industry news and information to them in exchange for $40,000, for which we were paid in advance the entire balance of the contract.
During the three months ended February 28, 2007, we generated aggregate revenues of $101,354, compared to total revenues of $20,000 during the year ago three month period ended February 28, 2007. This 407% increase in total revenues, or $81,354, is materially attributable to the acquisition of EDS in the third quarter of 2006, which contributed $88,854 in revenues from sales of tangible products during the three month period ended February 28, 2007, as opposed to $0 in the year ago period ended February 28, 2006.
Revenues from services realized during the quarter ended February 28, 2007 were $12,500, all of which is related to our arrangement to identify technology commercialization opportunities for Diamond I to research universities, government laboratories and third member private parties. We did not realize any revenues from services in the quarter ended February 28, 2006.
For the three month period ended February 28, 2007, we did not recognize any revenues from related parties. During the three months ended February 28, 2006, we realized $20,000 in revenues from our agreement with Financialnewsusa.com, a related party, to which we provided biodefense-related industry news and information. The substantial decrease of is due to the expiration of our agreement with that related entity.
Gross Profit
In association with sales of tangible products related specifically to our EDS operations, we incurred cost of goods sold in the amount of $60,515 during the three months ended February 28, 2007. This amount represents a margin of approximately 46% on sales of tangible products, and a gross margin of 40% on total revenues. After factoring cost of goods sold, our gross profit was $40,839 during the three months ended February 28, 2007. In the year ago period ended February 28, 2006, we did not incur any cost of goods sold, as we did not sell any tangible items. Resultantly, our gross profit for the quarter ended February 28, 2006, was $20,000.
Expenses
Total expenses for the three month period ended February 28, 2007 were $116,937, consisting solely of general and administrative expenditures. In the comparable year ago period ended February 28, 2006, we incurred total expenses of $22,154. Aggregate expenses increased approximately 428%, or $94,783, from year to year due primarily to our incurring expenses during the period ended February 28, 2007 not previously incurred in the period ended February 28, 2006.
We paid related parties a total of $3,000 during the period ended February 28, 2006 for miscellaneous expenses, such as professional fees, expense reimbursements and other general costs. In the most recent quarter ended February 28, 2007, we did not incur any related party expenses.
During the year ended November 30, 2006, we impaired assets related to our intellectual property licenses, as we determined that the value of the licenses had become impaired since we were no longer pursuing stem cell research. This determination was based on the resignation of the head of our stem cell research department and the inability to locate a replacement at an economically feasible compensation package. Further to this decreased pursuit of stem cell research, our research and development costs have decreased substantially from $12,866 in the quarter ended February 28, 2006 to nothing in the most recent quarter ended February 28, 2007.
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-------------------------------------------------------------------------------- General and administrative expenses increased substantially by 1,760%, or $110,649, year over year from $6,288 in the quarter ended February 28, 2006 to $116,937 in the three months ended February 28, 2007. Or management believes the rise in these expenditures are correlated with our increased business activities and ongoing pursuit of our business objectives. General and administrative expenses mainly consist of office expenditures such as postage and delivery fees, supplies and other similar miscellaneous items. We expect to continue to incur general and administrative expenses for the foreseeable future, although we cannot estimate the extent of these costs. We expect to continue to incur expenditures in the foreseeable future related to ongoing research and development and the expansion of our business operations. As we continue to pursue research and development efforts, we expect expenses to stabilize over the next several years. Unfortunately, we cannot accurately estimate the extent or impact of ongoing expenses.
Losses
Our loss before accounting for income taxes totaled $76,098 for the three months ended February 28, 2007, compared to a loss before income taxes of $2,154 in the prior period ended February 28, 2006. As we did not recognize any income taxes in the most recent period, nor in the year ago three month period ended February 28, 2006, our net loss from operations totaled $76,098 for the three months ended February 28, 2007 and $2,154 for the three months ended February 28, 2006. This represents a widening deficit of 3,433%, or $73,944, in a year-to-year comparison. Although we anticipate incurring ongoing operating losses, we expect these losses to narrow in year-to-year comparison as we generate increased revenues and as expenses begin to plateau over the next several years. However, we cannot guarantee the accuracy of our expectations.
Liquidity And Capital Resources
We have limited cash on hand, and may be unable to continue operations for the next at least 12 months if we are unable to generate revenues or obtain capital infusions by issuing equity or debt securities in exchange for cash. As of February 28, 2007, we had $13,009 in cash, $61,566 in net accounts receivables and $85,192 in saleable inventory. If we are unable to generate sufficient cash flows from sales of our products and services, collect outstanding accounts receivable, or to obtain capital through issuances of equity or debt, David Chin, a shareholder and President of our company, has verbally agreed to loan us cash, which shall bear no interest and be due upon demand. Through February 28, 2007, David Chin loaned us a total of $41,600 to pay for general and administrative expenses. The loan bears no interest and is due upon demand. As of February 28, 2007, the amount owed was $41,600. We have no formal written agreement with Mr. Chin for any further loans, and we cannot guarantee you that we will be able to enforce our verbal agreement. Notwithstanding this, there can be no assurance that we will be able to secure additional funds in the future to stay in business. Our independent registered public accountants have expressed substantial doubt about our ability to continue as a going concern because we have limited operations.
There are no known trends, events or uncertainties that have had or that are reasonably expected to have a material impact on our revenues from continuing operations.
Our management does not anticipate the need to hire additional full- or part- time employees over the next 12 months, as the services provided by our officers and directors appear sufficient at this time. We believe that our operations are currently on a small scale that is manageable by a few individuals. While we believe that the addition of employees is not required over the next 12 months, we intend to hire independent contractors to perform research activities and market any potential products and services we may develop.
We do not have any off-balance sheet arrangements.
We currently do not own any significant plant or equipment that we would seek to sell in the near future.
We have not paid for expenses on behalf of any of our directors. Additionally, we believe that this fact shall not materially change.
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-------------------- Please do your DD. Break some bread with me! Posts: 1138 | From: atlanta | Registered: Apr 2006
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posted
volume almost 2X average. Something good seems to be coming for this company, I spoke with Eddy from Equity Solutions..He said the company has been talking to companies for the past three months and they in the positive direction. If the spread thins up....with more volume it may move.
-------------------- Please do your DD. Break some bread with me! Posts: 1138 | From: atlanta | Registered: Apr 2006
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