S3 Investment Company to File 10-K Annual Report with Financial Results Friday October 14, 11:22 am ET
TEMECULA, Calif.--(BUSINESS WIRE)--Oct. 14, 2005--S3 Investment Company Inc. (OTCBB:SEIH - News) has announced that the company expects to file its 10-K Annual Report with audited financial results with the Securities and Exchange Commission later today. ADVERTISEMENT
"We are committed to having the 10-K Annual Report filed by the end of business today," commented Chris Bickel, chairman and chief executive officer of S3 Investment Company. "It has always been a high priority to complete all filings on time, and despite the delay in filing this report, which was beyond the company's control, S3 remains firmly committed to this goal."
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About The Company
S3 Investment Company Inc. (http://www.s3investments.com) is a Business Development Company regulated by the Investment Company Act of 1940. Its first operating subsidiary, Securesoft Systems Inc. (http://www.securesoftsystems.com), was acquired in April 2003. S3 Investments has subsequently acquired 100% of Redwood Capital (http://www.redwoodcapinc.com) to participate in the fast-growing investment banking market in China and 51% of SINO UJE (http://www.sinouje.com), a non-stocking distributor of medical and industrial high-tech products to markets throughout China. S3 is currently focused on increasing the value of its investment portfolio and returning value to its shareholders.
Any statements contained herein related to future events are forward-looking statements and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Readers are cautioned not to place undue reliance on forward-looking statements. S3 Investment Company Inc. undertakes no obligation to update any such statements to reflect actual events.
-------------------------------------------------------------------------------- Contact: Gemini Financial Communications for S3 Investment Co. A. Beyer, 951-587-8072 investors*s3investments.com
-------------------------------------------------------------------------------- Source: S3 Investment Company Inc.
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ITEM 7. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following information should be read in conjunction with the consolidated financial statements and notes thereto appearing elsewhere in this Form 10-K.
Plan of Operation
On April 12, 2004 the Company's Board of Directors elected to be regulated as a business investment company under the Investment Company Act of 1940. As a business development company ("BDC"), the Company is required to maintain at least 70% of its assets invested in "eligible portfolio companies", which are loosely defined as any domestic company which is not publicly traded or that has assets less than $4 million.
As of April 28, 2004, management has recognized that there is a deficiency in liquidity. Such deficiency has been noted in the notes to the financial statements and the audit opinion. To remedy this situation, the Board of Directors authorized management to file Form 1-E with the Commission notifying of its intent to sell up to $5 million of the Company's common stock under a Regulation E exemption.
S3 Investment Company, Inc. presently has three portfolio investment, Securesoft Systems, Inc., Sino UJE, LTD, and Redwood Capital, Inc. Management anticipates making additional portfolio investments as opportunities present themselves in the coming year.
Currently, there are no commitments for material expenditures. It should be noted that the Company's auditors Chisholm, Bierwolf & Nilson, LLC have expressed in their audit opinion letter that there is substantial doubt about the Company's ability to continue as a going concern.
In October of 2004, S3 Investment Company, Inc. signed a management contract with Javelin Advisory Group to provide administrative services. Javelin will provide services such as accounting, public relations, and various other administrative functions as well as office rent. This service will eliminate virtually all overhead costs plus it will free up present staff to concentrate on revenue generating activities.
General and Administrative Expenses General and administrative expenses ("G&A") were $313,237 for the 12 months ended June 30, 2005, compared to $100,990 for the 12 months ended June 30, 2004, an increase of $212,337. The increase in G&A is due primarily due to increased activity in acquiring new portfolio companies.
Liquidity and Capital Resources
The Company's financial statements present an impairment in terms of liquidity. As of June 30, 2005 the Company had $485,002 in current liabilities which exceeded current assets by approximately $436,507. The Company has accumulated $2,889,764 of net operating losses through June 30, 2005, which may be used to reduce taxes in future years through 2022. The use of these losses to reduce future income taxes will depend on the generation of sufficient taxable income prior to the expiration of the net operating loss carry-forwards. The potential tax benefit of the net operating loss carry-forwards have been offset by a valuation allowance of the same amount. The Company has not yet established revenues to cover its operating costs. Management believes that the Company will soon be able to generate revenues sufficient to cover its operating costs through the acquisition of operating subsidiaries. In the event the Company is unable to do so, and if suitable financing is unavailable, there is substantial doubt about the Company's ability to continue as a going concern.
Results of Operation
For the year ended June 30, 2005 the Company had a net loss of $2,279,840 compared to a net loss of $609,924 for year ended June 30, 2004. The majority of this loss has to do with the write off of the Securesoft loan. All efforts to market the Securesoft product have been unsuccessful and the Secursoft operation has been shut down.
-------------------- I may be wrong, but I don't think so.... Posts: 837 | From: Madison, WI | Registered: Sep 2005
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Short Term Indicators 7 Day Average Directional Indicator Buy 10 - 8 Day Moving Average Hilo Channel Hold 20 Day Moving Average vs Price Buy 20 - 50 Day MACD Oscillator Buy 20 Day Bollinger Bands Hold
Short Term Indicators Average: 60% Buy 20-Day Average Volume - 22671416
Medium Term Indicators 40 Day Commodity Channel Index Buy 50 Day Moving Average vs Price Buy 20 - 100 Day MACD Oscillator Buy 50 Day Parabolic Time/Price Buy
Medium Term Indicators Average: 100% Buy 50-Day Average Volume - 40738758
Long Term Indicators 60 Day Commodity Channel Index Buy 100 Day Moving Average vs Price Buy 50 - 100 Day MACD Oscillator Hold
Long Term Indicators Average: 67% Buy 100-Day Average Volume - 32722947
Avoid or get out now as there is a terrible warning located in their own PR:
"Currently, there are no commitments for material expenditures. It should be noted that the Company's auditors Chisholm, Bierwolf & Nilson, LLC have expressed in their audit opinion letter that there is substantial doubt about the Company's ability to continue as a going concern".
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"der hinzugekommene Verlust ist periodenfremd und gehört eigentlich ins 3. Quartal des Geschäftsjahres.
Was mir beim Verlustvortrag nicht gefällt, ist die Aussage, daß diesen möglicherweise sowieso nicht nutzen könnte. Denn eigentlich ist der doch gar nicht so hoch. Andererseits haben aber auch gerade viele deutsche Unternehmen den geldwerten Steuervorteil aus Verlustvortrag komplett ausgebucht und damit Phantomverluste realisiert, die z. T. sogar Kapitalerhöhungen erforderten, weil 50% des Grundkapitals aufgezehrt waren. Das kann uns so zumindest so nicht blühen...
...Ich denke, die Zittrigen sind jetzt (oder sehr bald) draußen. Defacto gab es nur eine Korrektur eines Buchhaltungsfehlers und gar keinen Verlust mehr, d. h. effektiver ein echter Turnaround und eine Reduzierung der Verbindlichkeiten.
Warum sollte es vor diesem Hintergrund noch abwärts gehen? Abwärts sind wir durch den 200-Tage-Trend gut abgesichert.
Seitwärts könnt's auch gehen, aber in diesem Quartal dürfte Redwood Capital in den Fokus der Anleger kommen und das hieße eigentlich, daß es eher einen Aufwärtstrend gibt, auch wenn es evtl. bei Sino UJE (das ist vielleicht auch nur meine persönliche vorsichtige Einschätzung) nicht so gut lief, wie im 2. Quartal 2005. Außerdem schließt sich in Kürze das Dreieck zwischen 38-Tage und 200-Tageslinie, und danach ist ein Seitwärtstrend äußerst außergewöhnlich.
perhaps somebody can translate it in english. my english is not really good...
Posts: 220 | Registered: Sep 2005
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