SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13
OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For The Quarterly Period Ended December 31, 2004
Commission File Number 1-10366
WEIDA COMMUNICATIONS, INC.
(Exact Name of Registrant as Specified in Its Charter)
|
New Jersey |
|
22-2582847 |
|
(State or Other Jurisdiction of Incorporation or Organization) |
|
(IRS Employer Identification No.) |
|
|
|
|
|
515 East
Las Olas Boulevard, Suite 1350 |
|
33301 |
|
(Address of Principal Executive Offices) |
|
(Zip Code) |
|
|
|
|
|
(954) 527-7750 |
||
|
(Registrant’s Telephone Number, Including Area Code) |
||
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý No o
Indicate by check mark whether the registrant is an accelerated filer (as defined in Exchange Act Rule 12b-2). Yes o No ý
As of April 4, 2005, the registrant had 75,842,073 shares of common stock outstanding.
TABLE OF CONTENTS
ii
ITEM 1—Condensed Consolidated Financial Statements
Weida Communications, Inc. and Subsidiary
Condensed Consolidated Balance Sheets
At December 31, 2004 and June 30, 2004
|
|
|
December 31, |
|
June 30, |
|
||
|
|
|
(Unaudited) |
|
|
|
||
|
ASSETS |
|
|
|
|
|
||
|
Current Assets: |
|
|
|
|
|
||
|
Cash |
|
$ |
2,342,993 |
|
$ |
1,617,845 |
|
|
Accounts receivable, net |
|
59,613 |
|
— |
|
||
|
Interest receivable |
|
158,950 |
|
80,968 |
|
||
|
Related party receivable |
|
— |
|
438,640 |
|
||
|
Inventories |
|
1,573,831 |
|
— |
|
||
|
Prepaid expenses – current |
|
218,968 |
|
173,750 |
|
||
|
Total Current Assets |
|
4,354,355 |
|
2,311,203 |
|
||
|
|
|
|
|
|
|
||
|
Property, Plant, & Equipment |
|
2,092,277 |
|
18,121 |
|
||
|
|
|
|
|
|
|
||
|
Other Assets: |
|
|
|
|
|
||
|
Notes receivable |
|
2,200,000 |
|
2,200,000 |
|
||
|
Goodwill |
|
9,059,413 |
|
— |
|
||
|
Deferred acquisition costs |
|
— |
|
5,704,004 |
|
||
|
Prepaid expenses – non-current portion |
|
24,000 |
|
62,500 |
|
||
|
Other assets |
|
3,880 |
|
3,880 |
|
||
|
Total Other Assets |
|
11,287,293 |
|
7,970,384 |
|
||
|
Total Assets |
|
$ |
17,733,925 |
|
$ |
10,299,708 |
|
|
|
|
|
|
|
|
||
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
|
||
|
Current Liabilities: |
|
|
|
|
|
||
|
Accounts payable |
|
$ |
1,448,416 |
|
$ |
1,360,703 |
|
|
Accrued expenses |
|
102,223 |
|
158,100 |
|
||
|
Amounts due to shareholders |
|
200,582 |
|
— |
|
||
|
Amounts due to related parties |
|
1,941,553 |
|
756,386 |
|
||
|
Short term borrowing |
|
31,892 |
|
— |
|
||
|
Bank loan |
|
2,416,451 |
|
— |
|
||
|
Total Current Liabilities |
|
6,141,117 |
|
2,275,189 |
|
||
|
Long term loan |
|
270,000 |
|
270,000 |
|
||
|
Total Liabilities |
|
6,411,117 |
|
2,545,189 |
|
||
|
Common stock, $0 par value, 100,000,000 shares authorized, 74,195,497 and 72,334,486 issued and outstanding at December 31, 2004 and June 30, 2004, respectively |
|
15,100,385 |
|
9,408,958 |
|
||
|
Common stock to be issued |
|
4,478,666 |
|
1,375,955 |
|
||
|
Accumulated deficit |
|
(8,256,243 |
) |
(3,030,394 |
) |
||
|
Total shareholders’ equity |
|
11,322,808 |
|
7,754,519 |
|
||
|
Total Liabilities and Shareholders’ Equity |
|
$ |
17,733,925 |
|
$ |
10,299,708 |
|
See accompanying notes to unaudited condensed consolidated financial statements.
1
Weida Communications, Inc. and Subsidiary
Condensed Consolidated Statement of Operations
(Unaudited)
For The Three and Six Months Ended December 31, 2004 and December 31, 2003
|
|
|
Three Months Ended |
|
Six Months Ended |
|
||||||||
|
|
|
2004 |
|
2003 |
|
2004 |
|
2003 |
|
||||
|
Revenue |
|
|
|
|
|
|
|
|
|
||||
|
Sales of VSAT equipment |
|
$ |
81,881 |
|
$ |
— |
|
$ |
101,791 |
|
$ |
— |
|
|
Transponder utilization revenue |
|
92,437 |
|
— |
|
93,044 |
|
— |
|
||||
|
|
|
174,318 |
|
— |
|
194,835 |
|
— |
|
||||
|
Costs and expenses |
|
|
|
|
|
|
|
|
|
||||
|
Cost of sales |
|
(345,898 |
) |
— |
|
(467,366 |
) |
— |
|
||||
|
Selling, general, and administrative costs |
|
(1,707,280 |
) |
(989,324 |
) |
(4,982,828 |
) |
(1,043,233 |
) |
||||
|
|
|
(2,053,178 |
) |
(989,324 |
) |
(5,450,194 |
) |
(1,043,233 |
) |
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
Operating loss |
|
(1,878,860 |
) |
(989,324 |
) |
(5,255,359 |
) |
(1,043,233 |
) |
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
Other income (expenses) |
|
|
|
|
|
|
|
|
|
||||
|
Interest expense |
|
(36,339 |
) |
— |
|
(48,495 |
) |
— |
|
||||
|
Interest income |
|
43,963 |
|||||||||||