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 March 31, 2005
Commission File Number 1-10366
WEIDA COMMUNICATIONS, INC.
(Exact Name of Registrant as Specified in Its Charter)
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New Jersey |
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22-2582847 |
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(State or Other Jurisdiction of Incorporation or Organization) |
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(IRS Employer Identification No.) |
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515 East
Las Olas Boulevard, Suite 1350 |
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33301 |
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(Address of Principal Executive Offices) |
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(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 June 13, 2005 the registrant had 77,042,073 shares of common stock outstanding.
EXPLANATORY NOTE
As reported by Weida Communications, Inc. (the “Company”) in a Current Report on Form 8-K filed on June 8, 2005, the Company’s former independent auditors, Deloitte Touch Tohmatsu, resigned as the Company’s independent auditors on May 31, 2005. The Company has not yet selected a new independent registered public accounting firm. Consequently, this Quarterly Report on Form 10-Q was not reviewed by an independent auditor prior to filing.
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TABLE OF CONTENTS
iii
ITEM 1—Condensed Consolidated Financial Statements
Weida Communications, Inc. and Subsidiary
Condensed Consolidated Balance Sheets
At March 31, 2005 and June 30, 2004
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March 31, |
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June 30, |
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(Unaudited) |
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ASSETS |
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Current Assets: |
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Cash |
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$ |
1,468,112 |
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$ |
1,617,845 |
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Accounts receivable, net |
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70,783 |
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— |
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Interest receivable |
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— |
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80,968 |
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Advances |
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15,605 |
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— |
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Related party receivable |
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— |
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438,640 |
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Inventories |
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1,460,863 |
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— |
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Prepaid expenses – current |
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230,164 |
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173,750 |
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Total Current Assets |
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3,245,527 |
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2,311,203 |
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Property, Plant, & Equipment |
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1,515,686 |
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18,121 |
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Other Assets: |
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Notes receivable |
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2,200,000 |
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2,200,000 |
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Goodwill |
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9,000,662 |
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— |
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Deferred acquisition costs |
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— |
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5,704,004 |
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Prepaid expenses – non-current portion |
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— |
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62,500 |
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Other assets |
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3,880 |
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3,880 |
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Total Other Assets |
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11,204,542 |
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7,970,384 |
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Total Assets |
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$ |
15,965,755 |
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$ |
10,299,708 |
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LIABILITIES AND SHAREHOLDERS’ EQUITY |
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Current Liabilities: |
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Bank loan |
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$ |
2,416,451 |
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$ |
— |
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Short term borrowing |
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32,599 |
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— |
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Accounts payable |
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876,616 |
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1,360,703 |
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Accrued expenses and other payables |
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410,373 |
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158,100 |
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Claim settlement payable – current portion |
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250,833 |
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— |
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Amounts due to shareholders |
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229,994 |
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— |
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Amounts due to related parties |
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1,348,339 |
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756,386 |
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Total Current Liabilities |
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5,565,205 |
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2,275,189 |
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Long term liabilities: |
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Claim settlement payable – net of current portion |
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174,167 |
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— |
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Long term loan |
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270,000 |
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270,000 |
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Total Liabilities |
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6,009,372 |
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2,545,189 |
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Shareholders’ equity: |
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Preferred stock, $0 par value, 10,000,000 shares authorized, none issued at March 31, 2005 |
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— |
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— |
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Common stock, $0 par value, 400,000,000 shares authorized, 75,842,073 and 72,334,486 issued and outstanding at March 31, 2005 and June 30, 2004, respectively, 1,225,000 and 538,332 shares to be issued at March 31, 2005 and June 30, 2004, respectively |
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19,579,051 |
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9,408,958 |
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Common stock to be issued |
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134,500 |
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1,375,955 |
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Accumulated deficit |
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(9,757,168 |
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(3,030,394 |
) |
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Total shareholders’ equity |
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9,956,383 |
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7,754,519 |
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Total Liabilities and Shareholders’ Equity |
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$ |
15,965,755 |
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$ |
10,299,708 |
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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 Nine Months Ended March 31, 2005 and March 31, 2004
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Three Months Ended |
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Nine Months Ended |
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2005 |
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2004 |
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2005 |
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2004 |
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Revenue |
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Sales of VSAT equipment |
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$ |
69,758 |
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$ |
— |
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$ |
171,549 |
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$ |
— |
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Transponder utilization revenue |
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34,761 |
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— |
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127,805 |
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— |
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104,519 |
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— |
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299,354 |
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— |
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Costs and expenses |
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Cost of sales |
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442,839 |
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— |
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910,205 |
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