quote:
Originally posted by waterwitch:
CTKH/.005
IBZT/.044
LBTT/.036
NPCT/.525
VRMD/.114
WTEQ/.190
USVO/.690
BEAV,
TRIED TO DO A LITTLE QUICK DD ON THE FLY FOR USVO. MAYBE SOMEONE ELSE COULD HELP ON AND PICK ON OF YOUR OTHER STOCKS.
THIS IS A VERY QUICK ASSESSMENT AND HERE IS WHAT I CAME UP WITH.
EDWIN MOLINA - Declared Holdings
Relationship/Company Reported Shares Value
President
Usa Video Interactive Corp
12/23/03 1,895,000 as of: 12/23/2003 $121,280.00
as of: 01/15/2004 $795,900.00
ANTON JOHANN DRESCHER - Declared Holdings
Relationship/Company Reported Shares Value
Officer and Director
Usa Video Interactive Corp
12/05/03 6,331,890 as of: 12/05/2003 $405,240.96
as of: 01/15/2004 $2,659,393.79
PRES AND DIRECTOR HOLD A HUGH STAKE IN THE COMPANY. LOOKS LIKE THEY HAVE IMPROVED THEIR POSITION OF PROFITABILY CONSIDERABLY IN THE LAST YEAR. HAVE ALSO IMPROVED CASH POSITION. THEY HAVE ALSO REDUCED EXPENSES CONSIDERABLY.
THERE HAS BEEN VERY GOOD NEWS OUT ABOUT THE COMPANY.
THEY HAVE SEVERAL PATENTS AND SOME PATENT PENDING IN JAPAN.
SEEMS LIKE THEY HAVE BEEN SPENDING TIME ACQUIRING PATENTS AND NOW NEED TO CONCENTRATE ON SALES. ALL THINGS COME WITH TIME AND LOOKS LIKE THEY ARE AWARE AND HAVE CONSTRUCTIVELY SET UP A BUSINESS PLAN TO START MARKETING.
THAT IS ALL I HAVE TIME TO DO RIGHT NOW. WILL DO MORE LATER.
YOU BOUGHT AT THE VERY HIGH AND OF COURSE THE RETRACE WILL BE DRASTIC. I THINK FOR A QUICK DD ON THE FLY. I WOULD HOLD ONTO THIS FOR NOW. I WILL DO SOME MORE CHECKING.
LOOKS LIKE FOR A PENNY STOCK THERE COULD BE SOME POTENTIAL.
HAVE A GOOD TRADING DAY.
10-Q: USA VIDEO INTERACTIVE CORP
11/13/2003 7:13:27 AM
(EDGAR Online via COMTEX) -- Management's Discussion and Analysis of Financial Condition and
Results of Operations
Certain statements contained in this Quarterly Report on Form 10-Q (Report), including, without limitation, statements containing the words believes,anticipates, estimates, expects, and words of similar import, constitute forward-looking statements. Readers should not place undue reliance on these forward-looking statements. USA Video?s actual results could differ materially from those anticipated in these forward-looking statements for many reasons, including risks and uncertainties set forth in USA Video?s Annual Report on Form 10-K, the most important of which are summarized below under Factors Which May Affect Future Results of Operations, as well as in other documents USA Video files with the Securities and Exchange Commission (SEC).
The following information has not been audited. You should read this information in conjunction with the unaudited financial statements and related notes to financial statements included in this report.
USA Video Interactive Corp. (USA Video or the Company) designs and markets to business customers streaming video and video-on-demand systems, services and source-to-destination digital media delivery solutions that allow live or recorded digitized and compressed video to be transmitted through Internet, intranet, satellite or wireless connectivity. The Company's systems, services and delivery solutions include video content production, content encoding, media asset management, media and application hosting, multi-mode content distribution, transaction data capture and reporting, e-commerce, specialized engineering services, and Internet streaming hardware.
Although the Company has not generated any sales for the 2003 year, it continues to explore opportunities that will result in new products for new revenue streams, but there can be no assurances that such efforts will be successful.
USA Video holds the patent for Store-and-Forward Video-on-Demand (#5,130,792), filed in 1990 and issued by the United States Patent and Trademark Office on July 14, 1992. It has been cited by at least 145 subsequent patents. The Company holds similar patents in England, France, Spain, Italy, Germany, and Canada, and has a patent pending in Japan. The Company anticipates actively engaging in licensing this patent.
The Company?s products and services are based on its proprietary Store and Forward Video-on-Demand (VoD). USA Video?s Store and Forward VoD is a patented technique for transmitting video over switched (telephone-like) networks and allowing the user to view the video using videocassette recorder (VCR)-like controls (play, pause, stop, etc.). Store and Forward VoD is the mechanism by which the delivery of compressed video is managed and, together with compression technology, facilitates the delivery of video to an end user in a timely and interactive fashion.
USA Video has developed a number of specific products and services based on these technologies. These include StreamHQTM, a collection of source-to-destination media delivery services marketed to businesses; EncodeHQTM, a service that digitizes and compresses analog-source video; hardware server and encoder system applications under the brand name Hurricane MediacasterTM; ZMailTM, a service that delivers web and rich media content to targeted audiences; mediaClixTM, a service that delivers content similar to Zmail but originating from an existing web presence; and MediaSentinelTM, a patent-pending digital watermarking technology to deter digital video piracy.
The Company was incorporated on April 18, 1986, as First Commercial Financial Group Inc. in the Province of Alberta, Canada. In 1989, its name was changed to Micron Metals Canada Corp., which purchased 100% of the outstanding shares of USA Video Inc., a Texas corporation, in order to focus on the digital media business. In 1995, the Company changed its name to USA Video Interactive Corp. and continued its corporate existence to the State of Wyoming. The Company has five wholly-owned subsidiaries: USA Video (California) Corp., USA Video Corp., Old Lyme Productions Inc., USA Video Technologies, Inc., and USVO, Inc. USA Video?s executive and corporate offices are located in Old Lyme, Connecticut, and its Canadian offices are located in Vancouver, British Columbia.
The Company has established the following near-term business objectives:
1.
Leverage USA Video?s digital VoD patent for licensing fees and partnerships in the United States and internationally;
2.
Patent and license new technology developed within the corporate research and development program;
3.
Establish StreamHQTM as the industry standard in the streaming video and rich media marketplace;
4.
Attain industry recognition for the superior architectural, functional, and business differentiators of the StreamHQTM architecture;
5.
Develop at least one client per year for a complete StreamHQTM system, including intellectual property licensing and operational support;
6.
Expand StreamHQTM functionality to provide enhanced support for corporate training and education markets.
Our discussion and analysis of our financial condition and results of operations are based upon our financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States. The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. On an ongoing basis, we evaluate these estimates, including those related to customer programs and incentives, bad debts, inventories, investments, intangible assets, income taxes, warranty obligations, impairment or disposal of long-lived assets, contingencies and litigation. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the 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.
We consider the following accounting policies to be both those most important to the portrayal of our financial condition and that require the most subjective judgment:
Revenue recognition;
Accounting for marketable securities;
Impairment or disposal of long-lived assets;
Inventory valuation and related reserves; and
Deferred taxes.
REVENUE RECOGNITION. Software revenue and other services are recognized in accordance with the terms of the specific agreement, which is generally upon delivery. Maintenance, support and service revenue are recognized ratably over the term of the related agreement.
ACCOUNTING FOR MARKETABLE SECURITIES. We classify our investments in marketable securities as ?available for sale.? We carry these investments at fair value, based on quoted market prices, and unrealized gains and losses are included in accumulated other comprehensive income (loss), which is reflected upon the sale of our marketable securities in our statements of operations.
IMPAIRMENT OR DISPOSAL OF LONG-LIVED ASSETS. Long-lived assets are reviewed in accordance with Statement of Financial Accounting Standard (?SFAS?) 144. Impairment or disposal of long-lived assets losses are recognized in the period the impairment or disposal occurs. Long-lived assets are reduced to their estimated fair value.
INVENTORY VALUATION AND RELATED RESERVES. Inventories are valued at the lower of cost or market on a first-in, first-out basis. We use a standard cost system for purposes of determining cost; the standards are adjusted as necessary to ensure they approximate actual costs. We write down or reserve for estimated obsolete or excess inventory based upon assumptions about future demand and market conditions. We compare current inventory levels on a product basis to our current sales forecast in order to assess our inventory reserve balance. Our sales forecasts are based on economic conditions and trends (both current and projected), anticipated customer demand and acceptance of our products, current products, expected future products and various other assumptions. If actual market conditions are less favorable than those projected by management, additional write-downs may be required.
DEFERRED TAXES. We record a valuation allowance to reduce deferred tax assets when it is more likely than not that some portion of the amount may not be realized. During 2003, we determined that it was no longer more likely than not that we would be able to realize all or part of our net deferred tax asset in the future, and an adjustment to provide a valuation allowance against the deferred tax asset that as charged to income.
Sales
Sales for the nine-month period ended September 30, 2003 were $-0-, compared to revenue of $146,701 for the nine-month period ended September 30, 2002. Sales for the three-month period ended September 30, 2003 were $-0- compared to $57,125 three-month period ended September 30, 2002. USA Video discontinued the sale of select services from its prototype StreamHQTM after customers' satisfaction and proof of concept. The Company no longer sells its individual functions of StreamHQTM. USA Video intends to continue to develop and expand its StreamHQTM services business, while pursuing opportunities to sell replicated StreamHQTM systems to corporations and organizations that prefer systems solutions to services solutions.
Recently, due to the change in capital markets, plans to seek funding for an internal sales and marketing team was put on hold indefinitely. Since then the Company has focused on partnering relationships with other companies to complete the execution of it StreamHQ-based business plan.
Cost of Sales
The cost of sales for the nine months ended September 30, 2003 was $-0-, as compared to $96,205 for the comparable period of 2002. For the three-month period ended September 30, 2003, the cost of sales was $-0- as compared to $38,663 for the comparable period 2002. The decrease in cost of sales is directly attributable to the decrease in sales.
Selling, General and Administrative Expenses
Selling, general and administrative expenses consisted of product marketing expenses, consulting fees, office, professional fees and other expenses to execute the business plan and for day-to-day operations of the Company. Due to market conditions, management has implemented consolidation procedures to reduce the daily cost of selling, general and administrative expenses.
Selling, general and administrative expenses for the three months ended September 30, 2003 decreased $8,683 to $115,702 from $124,385 for the three months ended September 30, 2002. The nine months ended September 30, 2003 these cost decreased by $326,377 to $448,939 from $775,316 for the comparable period. The reduction was due to a reduction in the Company?s operation.
Professional expense for the three months ended September 30, 2003, increased to $18,694 from $8,414 for the comparable period of 2002. The nine months ended September 30, 2003 these cost increased to $124,802 from $80,218 for the comparable period. The increase was due to the Company performing due diligence in preparation of a patent infringement suit.
Depreciation and amortization expense for the nine months ended September 30, 2003 was $14,543, as compared to $397,874 for the comparable period of 2002. For the three-month period ended September 30, 2003, depreciation and amortization expense was $4,848 as compared to $132,624 for the comparable period 2002. The decrease was due to the impairment of long-lived assets in 2002.
The Company has arranged for additional staff/consultants to engage in marketing activities in an effort to identify and assess appropriate market segments, develop business arrangements with prospective partners, create awareness of new products and services, and communicate to the industry and potential customers. Other components of selling, general and administrative expense did not change significantly.
Research and Development Expenses
Research and development expenses consisted primarily of compensation, hardware, software, licensing fees, and new product applications for the Company's proprietary StreamHQ and digital watermark and fingerprint technology. Research and development expenses decreased to $34,000 for the nine months ended September 30, 2003, from $273,839 for the comparable period in 2002 and to $34,000 for the three months ended September 30, 2003 from $38,258 for the comparable period in 2002. Management has raised capital to resume research and development of its digital watermark and fingerprint technology.
Other Income
During the nine months ended September 30, 2003, the Company settled debt of approximately $201,000 for $131,000 at a gain of $70,000, and sold fixed assets with a $95,000 book value for $115,000 realizing of $20,000. During the nine months ended September 30, 2002, the Company sold stock of related registered companies for a loss of $93,519.
Impairment Loss on Long-Lived Assets
As the result of the Company?s inability to raise revenues in accordance with the corporate business plan, the company continued operating at a loss of the nine month period ended September 30, 2003. As a result, the Company commenced an impairment review of its long-lived assets in accordance with SFAS 144 Accounting of the Impairment or Disposal of Long-Lived Assets?. As a result of this impairment review, the Company recorded an impairment loss of approximately $100,000 during the nine month period ended September 30, 2003 and $75,000 during the three month period ending September 30 2003, to reduce the carrying value of these assets to its estimated fair value.
Net Losses
To date, the Company has not achieved profitability and, expects to incur substantial net losses for at least the remainder of 2003. The Company's net loss for the nine months ended September 30, 2003 was $513,115 as compared with a net loss of $1,882,873 for the nine months ended September 30, 2002 and for the three months ended September 30, 2003 was $224,312 as compared to $641,336 for the comparable period.
At September 30, 2003, the Company's had a cash position of $154,498, compared to $48,708 at December 31, 2002.
The Company will require additional financing to fund current operations through the first quarter of 2004. The Company has historically satisfied its capital needs primarily by issuing equity securities. The Company will require an additional $1.0 million to $1.5 million to finance operations through fiscal 2004 and intends to seek such financing through sales of its equity securities.
Assuming the aforementioned $1.0 million to $1.5 million in financing is obtained, the Company believes that continuing operations for the longer term will be supported through anticipated licensing revenues and through additional sales of the Company's securities. Although longer-term financing requirements may vary depending upon the Company's sales performance, management expects that the Company will require additional financing of $1.0 million to $1.5 million through fiscal 2004. The Company has no binding commitments or arrangements for additional financing, and there is no assurance that management will be able to obtain any additional financing on terms acceptable to the Company, if at all.
Certain risks and uncertainties could cause actual results to differ materially from the results contemplated by the forward-looking statements contained in this Report. Risks and uncertainties have been set forth in the Company's Annual Report on Form 10-K, as well as in other documents the Company files with the SEC. These risk factors include the following:
To date, USA Video has not been profitable, has not generated significant revenue from operations, and has incurred substantial losses. For the nine months ended September 30, 2003, USA Video had a net loss of $513,115. As of September 30, 2003, the Company had an accumulated deficit of $31,689,556 and a working capital deficit of $555,330. The Company intends to continue to expend significant financial and management resources on the development of its proposed products and services, and other aspects of its business. As a result, the Company expects operating losses and negative cash flows to increase for the foreseeable future. Consequently, USA Video will need to generate significant revenues to achieve and maintain profitability. The Company may be unable to do so. If USA Video's revenues grow more slowly than anticipated or if operating expenses increase more than expected, or are not reduced sufficiently, it may never achieve profitability. Because of factors discussed in this paragraph, USA Video's auditors, in their report on the Company's financial statements, have expressed substantial doubt concerning the Company's ability to continue as a going concern.
The Company's business and prospects must be considered in light of the risks encountered by companies in their early stages of development, particularly companies in new and rapidly evolving markets such as streaming media.
The Company requires substantial additional financing to maintain operations at current levels for the fourth quarter of 2003 and through fiscal 2004. Financing may not be available when needed on terms favorable to the Company, or at all. If adequate funds are not available or are not available on acceptable terms, the Company may be unable to further develop or enhance its products and services, take advantage of future opportunities or respond to competitive pressures, or ultimately, to continue in business.
The Company's sales have been adversely affected by the ongoing slump in the technology industry segment and the continuation of these market conditions can be expected to result in depressed demand for the Company's products and services.
Factors that could cause such fluctuations include the Company's ability to attract and retain customers; the introduction of new video transmission services or products by others; price competition; the continued development of and changes in the streaming media market; its ability to remain competitive in its product and service offerings; its ability to attract new personnel; and potential U.S. and foreign regulation of the Internet.
Keeping pace with the technological advances may require substantial expenditures and lead time, particularly with respect to acquiring updated hardware and infrastructure components of its systems. The Company may require additional financing to fund such acquisitions. Any such financing may not be available on commercially reasonably terms, if at all, when needed.
These changes and developments may render the Company's products and technologies obsolete in the future. As a result, the Company's success depends on its ability to develop or adapt products and services or to acquire new products and services that can compete successfully. There can be no assurance that the Company will be successful in these efforts.
Accordingly, existing shareholders may experience additional dilution of their percentage ownership interest in the Company. In addition, the new equity securities may have rights, preferences or privileges senior to those of existing holders of the Company's common shares.
Nov 13, 2003
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DIANA
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