09-20-2005, 08:57 PM
The delayed 2nd quarter earnings finally released and to sum it up: BidVille is warning that unless a miracle occurs (i.e. it obtains additional financing) it may be forced to liquidate the company.
here's the link to the SEC filing:
http://www.sec.gov/Archives/edgar/data/1...-index.htm
here's the link to the SEC filing:
http://www.sec.gov/Archives/edgar/data/1...-index.htm
Quote:2nd Quarter Revenues $49,800
Total Current Assets $71,756
Total Current Liabilities $1,711,343
(Loss) from operations (1,004,137)
Net (loss) $ (1,009,623)
Net (loss) per share basic and diluted $(0.02)
Cash at beginning of period $145,815
Cash at end of period $13,992
Quote:The Company has experienced a significant loss from operations and has working
capital and stockholder deficits. For the period ended June 30, 2005 the Company
incurred a net loss of $1,542,819. In addition, the Company has working capital
and stockholder deficits of $1,639,587 and $1,518,632 at June 30, 2005.
Quote:As of the date of this filing, no closings have been completed and the Company
has received only $100,000 of the required Two Million Five Hundred Thousand
Dollars ($2,500,000). On August 8, 2005, the Company, pursuant to provisions
contained in the Agreement, placed Delmount in formal default <--so the $2.5 million in financing the company was counting on to keep it afloat fell through
Quote:As of the date of this
filing, no closings have been completed and the Company has received only
$100,000 of the required Two Million Five Hundred Thousand Dollars ($2,500,000).
The Company faces significant liquidity problems resultant from the failure of
Delmount to provide the funding pursuant to this Agreement. Based upon our
current cash position we do not have sufficient funds to conduct our operations..[i]<--this explains why the company's customer service staff all but disappeared 2 weeks ago[/i
Quote:The Company's ability to continue as a going concern is contingent upon its
ability to secure additional financing, increase ownership equity and attain
profitable operations
Quote:The Company is pursuing additional equity financing for its operations and to
expand its operations. Failure to secure such financing or to raise additional
capital or borrow additional funds and/or expand its operations may result in
the Company not being able to continue in existence
Quote:In the event that we do not obtain adequate financing to complete our Plan of Operations or if we do not adequately implement an alternative plan of
operations that enables us to conduct operations without having received
adequate financing, we may have to liquidate our business and undertake any or
all of the following actions:
o Sell or dispose of our assets, if any;
o Pay our liabilities in order of priority, if we have available cash
to pay such liabilities;
o If any cash remains after we satisfy amounts due to our creditors,
distribute any remaining cash to our shareholders in an amount equal
to the net market value of our net assets;
o File a Certificate of Dissolution with the State of Nevada to
dissolve our corporation and close our business;
o Make the appropriate filings with the Securities and Exchange
Commission so that we will no longer be required to file periodic
and other required reports with the Securities and Exchange
Commission, if, in fact, we are a reporting company at that time;
and
o Make the appropriate filings with the National Association of
Security Dealers to effect a delisting of our common stock, if, in
fact, our common stock is trading on the Over-the-Counter Bulletin
Board at that time.
Based upon our current assets, however, we will not have the ability to
distribute any cash to our shareholders. If we have any liabilities that we are
unable to satisfy and we qualify for protection under the U.S. Bankruptcy Code,
we may voluntarily file for reorganization under Chapter 11 or liquidation under
Chapter 7. Our creditors may also file a Chapter 7 or Chapter 11 bankruptcy
action against us. If our creditors or we file for Chapter 7 or Chapter 11
bankruptcy, our creditors will take priority over our shareholders. If we fail
to file for bankruptcy under Chapter 7 or Chapter 11 and we have creditors, such
creditors may institute proceedings against us seeking forfeiture of our assets,
if any.
We do not know and cannot determine which, if any, of these actions we will be
forced to take. If any of these foregoing events occur, you could lose your
entire investment in our shares.