BidVille 2nd Quarter Earnings Report Released, Warns of Possible Bankruptcy

[bargainbloodhound]

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

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

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.

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

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

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

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

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.

[bargainbloodhound]

this is from September 1st, but it seems appropriate here 

[quote author=bargainbloodhound link=topic=283.msg1174#msg1174 date=1125621074]

New low

Hmmm, the company's last quarterly report [1st quarter] showed a negative net worth and no cash on hand but they were saved at the last minute by a $2.5 million investment which is probably almost gone by now...sooo, the question is when (not if) do they finally pull the plog...and when they do pull the plug where do the 1.5 million listings go: eBay or Yahoo?  Since over half of the listings are low priced sports cards, my bet is Yahoo since its A. free and B. already has a large sports card category (over 20% of Y's listings).
[/quote]

[bargainbloodhound]

Listings have dropped approximately 10% since the news was released yesterday (to 1.25 million) and are down over 20% since the customer service staff and board moderators disappeared at the beginning of the month.

  The site also suffered another outage overnight (about 1 hour)...and still no announcements from BidVille about  the future of the site, the problem of a recent sharp rise in scammers and non paying bidders (and many users complaining that their FVF fees are not being refunded), or any of the many technical problems that have beset the site in recent weeks.

[bargainbloodhound]

The first communication from the company to its customers in about 3 weeks:

Valued Bidville Members,

First and foremost, we sincerely apologize for the delay in communicating our current situation. As a publicly traded Company on the stock market, we have to be very careful on the timing of the release of information regarding the Company’s financial position and its operational changes.

Over the next few weeks, we are planning many positive changes and we are excited about a new beginning for Bidville and its members. We will do our best to keep our valued members aware of the developments as they occur. We are confident that these changes, coupled with the support of our members, provide a bright future for Bidville.

Our main priority is to tend to all customer service issues first. FSF refunds will be processed and missing auctions will be re-listed soon. The message boards will also be cleaned up and maintained on a regular basis.

In preparation for our next phase of growth and conversion of data, all outdated information related to members, auctions, and messages will be archived and consolidated to help eliminate our periods of "unavailability" and “timing out”.

We have currently turned off all billing processes. No credit cards or checking accounts on file will be charged until the billing, FSF Refunds, and Customer Service issues have been corrected.

During this entire process, we will do our best to communicate as much information about our progress as we can. Please bear with us during this period of reorganization.

Thanks for continuing to grow with us.

Bidville

[bidvillesucks]

turned off all billing=no revenue=R.I.P.

[thentavius]

I bet MadCows is alive with activity right now.

[bargainbloodhound]

[quote author=thentavius link=topic=470.msg2019#msg2019 date=1127697288]
I bet MadCows is alive with activity right now.
[/quote]

They've been alive with activity all month...and it wasn't even BV related.  They seemed to be having a foul mouthed (...hmmm using the term foul mouthed is redundant when talking about MC, isn't it?) internal board war earlier in the month.  Sneaky and Ross both provided blow by blow coverage of the festivities. 

[quote author=bidvillesucks link=topic=470.msg2004#msg2004 date=1127673008]
turned off all billing=no revenue=R.I.P.
[/quote]

There's always the remote chance they found another sucker investor to provide a much needed cash infusion.

[bargainbloodhound]

A week later, AuctionBytes finally gets around to doing a belated story on the resignation of BidVille's CEO and BidVille's earnings.  There is absolutely nothing new in the article...but since this is an Auctionbytes article that is to be expected : : : : :twistedevil:

http://auctionbytes.com/cab/abn/y05/m09/i27/s01