Arizona (State or other jurisdiction of incorporation or organization | 6770 (Primary Standard Industrial Classification Code Number) | 86-0464104 (I.R.S. Employer Identification No.) |
Large Accelerated Filer ¨ | Accelerated Filer ¨ | ||
Non-Accelerated Filer ¨ | Smaller Reporting Company x | ||
(Do not check if a smaller reporting company) |
PART I. | |||
FINANCIAL INFORMATION | |||
Item 1. | Condensed Consolidated Financial Statements | 1 | |
Item 2. | Management's Discussion And Analysis of Financial Condition and Results of Operations | 13 | |
Item 3. | Quantitative and Qualitative Disclosures about Market Risk | 18 | |
Item 4. | Controls and Procedures | 18 | |
PART II. | |||
OTHER INFORMATION | |||
Item 1. | Legal Proceedings | 19 | |
Item 1A. | Risk Factors | 19 | |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | 19 | |
Item 3. | Defaults upon Senior Securities | 19 | |
Item 4. | Removed and | 19 | |
Item 5. | Other Information | 19 | |
Item 6. | Exhibits | 19 |
Item 1. | Financial Statements |
Creative Vistas, Inc. Condensed Consolidated Balance Sheets | June 30, 2011 | December 31, 2010 | September 30, 2011 | December 31, 2010 | ||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||||
Assets | ||||||||||||||||
Current Assets | ||||||||||||||||
Cash and bank balances | $ | 2,275,488 | $ | 2,030,707 | $ | 1,190,904 | $ | 1,779,345 | ||||||||
Accounts receivable, net of allowance for doubtful accounts of $178,582 (2010 - $253,714) | 3,744,378 | 3,039,739 | ||||||||||||||
Accounts receivable, net of allowance for doubtful accounts of $69,524 (2010 - $98,000) | 996,663 | 1,129,942 | ||||||||||||||
Income tax receivable | 80,506 | 180,000 | 171,429 | 180,000 | ||||||||||||
Inventory and supplies | 634,916 | 692,881 | 387,292 | 476,968 | ||||||||||||
Prepaid expenses | 223,891 | 372,507 | 24,269 | 14,765 | ||||||||||||
Current assets of discontinued operations | - | 2,734,814 | ||||||||||||||
Total current assets | 6,959,179 | 6,315,834 | 2,770,557 | 6,315,834 | ||||||||||||
Property, plant and equipment, net of depreciation and amortization | 3,471,401 | 4,407,739 | 707,173 | 790,874 | ||||||||||||
Deposits | 214,406 | 228,434 | 19,048 | 22,500 | ||||||||||||
Deferred financing costs, net | 151,755 | 225,107 | - | 2,157 | ||||||||||||
Intangible assets, net | 41,468 | 56,316 | ||||||||||||||
Deferred income taxes | 37,788 | 37,430 | 36,879 | 37,430 | ||||||||||||
Noncurrent assets of discontinued operations | - | 4,102,065 | ||||||||||||||
$ | 10,875,997 | $ | 11,270,860 | $ | 3,533,657 | $ | 11,270,860 | |||||||||
Liabilities and Shareholders' (Deficiency) | �� | |||||||||||||||
Current Liabilities | ||||||||||||||||
Bank indebtedness | $ | 1,076,799 | $ | 650,744 | $ | - | $ | 255,312 | ||||||||
Accounts payable and accrued liabilities | 4,344,779 | 3,990,875 | 1,582,934 | 1,748,604 | ||||||||||||
Current portion of obligations under capital leases | 1,666,238 | 1,487,460 | ||||||||||||||
Deferred income | 44,463 | 110,485 | 30,073 | 110,485 | ||||||||||||
Deferred income taxes | 25,858 | 25,858 | 25,858 | 25,858 | ||||||||||||
Current portion of term notes | 14,001,128 | 14,051,128 | 1,548,207 | 8,902,374 | ||||||||||||
Current liabilities of discontinued operations | - | 9,273,917 | ||||||||||||||
Total current liabilities | 21,159,265 | 20,316,550 | 3,187,072 | 20,316,550 | ||||||||||||
Term notes | 1,819,553 | 1,702,218 | ||||||||||||||
Notes payable to related parties | 1,500,000 | 1,500,000 | 1,500,000 | 1,500,000 | ||||||||||||
Obligations under capital lease, net of current portion | 899,966 | 1,899,524 | ||||||||||||||
Due to related parties | 238,010 | 230,870 | 219,876 | 230,870 | ||||||||||||
Noncurrent liabilities of discontinued operations | - | 3,601,742 | ||||||||||||||
25,616,794 | 25,649,162 | 4,906,948 | 25,649,162 | |||||||||||||
Shareholders' (deficiency) | ||||||||||||||||
Share capital | ||||||||||||||||
Preferred stock no par value, 50,000,000 shares authorized; none issued or outstanding | ||||||||||||||||
Common stock, no par value 100,000,000 shares authorized; 37,488,714 shares issued and outstanding | ||||||||||||||||
Common stock | 6,555,754 | 6,555,754 | 6,555,754 | 6,555,754 | ||||||||||||
Additional paid-in capital | 14,334,030 | 14,314,354 | 14,334,030 | 14,314,354 | ||||||||||||
Accumulated (deficit) | (33,645,258 | ) | (33,638,922 | ) | (21,998,750 | ) | (33,638,922 | ) | ||||||||
Accumulated other comprehensive (losses) | (1,985,323 | ) | (1,609,488 | ) | (264,325 | ) | (1,609,488 | ) | ||||||||
(14,740,797 | ) | (14,378,302 | ) | (1,373,291 | ) | (14,378,302 | ) | |||||||||
$ | 10,875,997 | $ | 11,270,860 | $ | 3,533,657 | $ | 11,270,860 |
Creative Vistas, Inc. | Creative Vistas, Inc. | |||||||||||||||||||||||||||||||
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) | Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) | |||||||||||||||||||||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||||||||||||||||||||
Three months ended | Six months ended | Three months ended | Nine months ended | |||||||||||||||||||||||||||||
June 30 | June 30 | September 30 | September 30 | |||||||||||||||||||||||||||||
2011 | 2010 | 2011 | 2010 | 2011 | 2010 | 2011 | 2010 | |||||||||||||||||||||||||
Contract and service revenue | ||||||||||||||||||||||||||||||||
Contract | $ | 1,832,003 | $ | 1,662,091 | $ | 3,721,569 | $ | 2,776,818 | $ | 1,136,419 | $ | 1,471,711 | $ | 4,857,989 | $ | 4,248,529 | ||||||||||||||||
Service | 8,101,229 | 8,646,467 | 15,231,545 | 16,768,246 | 334,549 | 291,360 | 1,058,045 | 1,126,498 | ||||||||||||||||||||||||
Other | 904 | 1,287 | 1,459 | 2,395 | 328 | 587 | 1,786 | 2,983 | ||||||||||||||||||||||||
9,934,136 | 10,309,845 | 18,954,573 | 19,547,459 | 1,471,296 | 1,763,658 | 5,917,820 | 5,378,010 | |||||||||||||||||||||||||
Cost of sales (excluding depreciation and amortization)) | ||||||||||||||||||||||||||||||||
Cost of sales (excluding depreciation and amortization) | ||||||||||||||||||||||||||||||||
Contract | 914,957 | 1,017,603 | 1,976,688 | 1,571,874 | 592,115 | 1,049,019 | 2,568,801 | 2,620,893 | ||||||||||||||||||||||||
Service | 6,590,189 | 6,522,220 | 12,200,451 | 12,870,947 | 141,898 | 126,015 | 507,695 | 380,744 | ||||||||||||||||||||||||
Project expenses | 294,458 | 234,088 | 587,082 | 463,887 | 292,140 | 235,534 | 879,222 | 699,421 | ||||||||||||||||||||||||
Selling expenses | 268,517 | 202,109 | 496,288 | 470,234 | 226,124 | 231,315 | 722,413 | 701,549 | ||||||||||||||||||||||||
General and administrative expenses | 954,865 | 1,364,203 | 1,956,621 | 2,587,835 | 737,690 | 230,914 | 1,610,685 | 1,336,889 | ||||||||||||||||||||||||
Depreciation expense | 429,078 | 584,338 | 907,370 | 1,183,204 | 12,917 | 20,443 | 53,971 | 61,592 | ||||||||||||||||||||||||
Amortization of intangible assets | 8,295 | 57,812 | 16,422 | 115,548 | - | 50,000 | - | 150,000 | ||||||||||||||||||||||||
9,460,359 | 9,982,373 | 18,140,922 | 19,263,529 | 2,002,884 | 1,943,240 | 6,342,787 | 5,951,088 | |||||||||||||||||||||||||
Income from operations | 473,777 | 327,472 | 813,651 | 283,930 | ||||||||||||||||||||||||||||
Loss from operations | (531,588 | ) | (179,582 | ) | (424,967 | ) | (573,078 | ) | ||||||||||||||||||||||||
Interest and other expenses (income) | ||||||||||||||||||||||||||||||||
Net financing expenses | 509,721 | 577,403 | 1,021,412 | 1,171,771 | 120,852 | 191,424 | 473,632 | 591,357 | ||||||||||||||||||||||||
Amortization of deferred charges | 39,112 | 43,376 | 79,482 | 86,308 | - | 6,384 | 2,179 | 19,502 | ||||||||||||||||||||||||
Foreign currency translation (gain) loss | 1,092 | 353,849 | (280,907 | ) | 92,574 | 121,920 | (35,618 | ) | 83,571 | (23,096 | ) | |||||||||||||||||||||
549,925 | 974,628 | 819,987 | 1,350,653 | 242,772 | 162,190 | 559,382 | 587,763 | |||||||||||||||||||||||||
(Loss) before income taxes | (76,148 | ) | (647,156 | ) | (6,336 | ) | (1,066,723 | ) | ||||||||||||||||||||||||
(Loss) from continuing operations before income taxes | (774,360 | ) | (341,772 | ) | (984,349 | ) | (1,160,841 | ) | ||||||||||||||||||||||||
Income taxes | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Net (loss) | (76,148 | ) | (647,156 | ) | (6,336 | ) | (1,066,723 | ) | ||||||||||||||||||||||||
Other comprehensive (loss): | ||||||||||||||||||||||||||||||||
(Loss) from continuing operations | (774,360 | ) | (341,772 | ) | (984,349 | ) | (1,160,841 | ) | ||||||||||||||||||||||||
Discontinued operations: | ||||||||||||||||||||||||||||||||
Income from discontinued operations, net of income taxes | 247,845 | 975,116 | 451,498 | 727,464 | ||||||||||||||||||||||||||||
Gain on disposal of discontinued operations, net of income taxes | 12,173,023 | - | 12,173,023 | - | ||||||||||||||||||||||||||||
Income from discontinued operations | 12,420,868 | 975,116 | 12,624,521 | 727,464 | ||||||||||||||||||||||||||||
Net income (loss) | 11,646,508 | 633,344 | 11,640,172 | (433,377 | ) | |||||||||||||||||||||||||||
Other comprehensive income (loss): | ||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | - | 472,246 | (375,835 | ) | 124,701 | 1,720,999 | (345,703 | ) | 1,345,163 | (221,002 | ) | |||||||||||||||||||||
Comprehensive (loss) | $ | (76,148 | ) | $ | (174,910 | ) | $ | (382,171 | ) | $ | (942,022 | ) | ||||||||||||||||||||
Comprehensive income (loss) | $ | 13,367,507 | $ | 287,641 | $ | 12,985,335 | $ | (654,379 | ) | |||||||||||||||||||||||
Basic and diluted weighted-average shares | 37,488,714 | 37,488,714 | 37,488,714 | 37,488,714 | 37,488,714 | 37,488,714 | 37,488,714 | 37,488,714 | ||||||||||||||||||||||||
Basic and diluted (loss) per share | $ | (0.00 | ) | $ | (0.02 | ) | $ | (0.00 | ) | $ | (0.03 | ) | ||||||||||||||||||||
Basic and diluted income (loss) per share | ||||||||||||||||||||||||||||||||
Continuing operations | $ | (0.02 | ) | $ | (0.01 | ) | $ | (0.03 | ) | $ | (0.03 | ) | ||||||||||||||||||||
Discontinued operations | $ | 0.33 | $ | 0.03 | $ | 0.34 | $ | 0.02 | ||||||||||||||||||||||||
Net income (loss) | $ | 0.31 | $ | 0.02 | $ | 0.31 | $ | (0.01 | ) |
Creative Vistas, Inc. | Creative Vistas, Inc. | |||||||||||||||
Condensed Consolidated Statements of Cash Flows | Condensed Consolidated Statements of Cash Flows | |||||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||||
Six months ended June 30, | Nine months ended September 30 | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Operating activities | ||||||||||||||||
Net cash provided by operating activities | $ | 800,320 | $ | 455,005 | ||||||||||||
Net cash (used in) provided by operating activities | $ | (295,258 | ) | $ | 13,374 | |||||||||||
Investing activities | ||||||||||||||||
Proceeds from sales of property and equipment | 17,035 | 7,611 | ||||||||||||||
Purchase of property and equipment | (28,915 | ) | (36,966 | ) | (4,692 | ) | (6,720 | ) | ||||||||
Net cash (used in) investing activities | (11,880 | ) | (29,355 | ) | (4,692 | ) | (6,720 | ) | ||||||||
Financing activities | ||||||||||||||||
Proceeds from (repayment of) bank indebtedness | 384,727 | 76,503 | (260,664 | ) | 207,066 | |||||||||||
Repayment of capital leases | (752,717 | ) | (744,678 | ) | ||||||||||||
Repayment of term notes | (50,000 | ) | (50,000 | ) | (66,667 | ) | (75,000 | ) | ||||||||
Net cash (used in) financing activities | (417,990 | ) | (718,175 | ) | ||||||||||||
Net cash (used in) provided by financing activities | (327,331 | ) | 132,066 | |||||||||||||
Effect of foreign exchange rate changes in cash | (125,669 | ) | 41,013 | 38,840 | 6,424 | |||||||||||
Net change in cash and cash equivalents | 244,781 | (251,512 | ) | (588,441 | ) | 145,144 | ||||||||||
Cash and cash equivalents, beginning of period | 2,030,707 | 2,441,204 | 1,779,345 | 2,274,306 | ||||||||||||
Cash and cash equivalents, end of period | $ | 2,275,488 | $ | 2,189,692 | $ | 1,190,904 | $ | 2,419,450 | ||||||||
Supplemental Cash Flow Information | ||||||||||||||||
Loan interest or penalties paid with warrant | $ | 13,507 | $ | 84,934 | ||||||||||||
Assignment of term loan as a result of sale of Cancable | $ | 7,287,500 | $ | - |
1. | Summary of Accounting Policies |
July 1 through | Three months ended | January 1 through | Nine months ended | |||||||||||||
September 16 | September 30 | September 16 | September 30 | |||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Service revenue | $ | 7,194,092 | $ | 9,393,317 | $ | 21,702,141 | $ | 25,326,424 | ||||||||
Cost of sales | 5,776,780 | 7,016,057 | 17,611,414 | 19,632,268 | ||||||||||||
General and administrative expenses | 456,974 | 634,578 | 1,540,620 | 2,116,444 | ||||||||||||
Depreciation expense | 312,343 | 516,474 | 1,178,659 | 1,658,529 | ||||||||||||
Amortization of intangible assets | 6,933 | 7,737 | 23,355 | 23,284 | ||||||||||||
6,553,030 | 8,174,846 | 20,354,048 | 23,430,525 | |||||||||||||
Income from operations | 641,062 | 1,218,471 | 1,348,093 | 1,895,899 | ||||||||||||
Interest and other expenses (income) | ||||||||||||||||
Net financing expenses | 242,756 | 368,547 | 911,388 | 1,140,386 | ||||||||||||
Amortization of deferred charges | 56,834 | 36,604 | 134,137 | 109,793 | ||||||||||||
Foreign currency translation (gain) loss | 93,627 | (161,796 | ) | (148,930 | ) | (81,744 | ) | |||||||||
393,217 | 243,355 | 896,595 | 1,168,435 | |||||||||||||
Income from discontinued operations, net of income tax | 247,845 | 975,116 | 451,498 | 727,464 | ||||||||||||
Gain on disposal of discontinued operations, net of income taxes | 12,173,023 | - | 12,173,023 | - | ||||||||||||
Income from discontinued operations | $ | 12,420,868 | $ | 975,116 | $ | 12,624,521 | $ | 727,464 |
December 31, 2010 | ||||
Cash and bank balances | $ | 251,362 | ||
Accounts receivable, net of allowance for doubtful accounts | 1,909,797 | |||
Inventory and supplies | 215,913 | |||
Prepaid expenses | 357,742 | |||
Current assets of discontinued operations | $ | 2,734,814 | ||
Property, plant and equipment, net of depreciation and amortization | $ | 3,616,865 | ||
Deposits | 205,934 | |||
Deferred financing costs, net | 222,950 | |||
Intangible assets, net | 56,316 | |||
Noncurrent assets of discontinued operations | $ | 4,102,065 | ||
Bank indebtedness | $ | 395,432 | ||
Accounts payable and accrued liabilities | 2,242,271 | |||
Current portion of obligations under capital leases | 1,487,460 | |||
Current portion of term notes | 5,148,754 | |||
Current liabilities of discontinued operations | $ | 9,273,917 | ||
Term notes | $ | 1,702,218 | ||
Obligations under capital lease, net of current portion | 1,899,524 | |||
Noncurrent liabilities of discontinued operations | $ | 3,601,742 |
September 16, 2011 | ||||
Total Assets | $ | 6,836,879 | ||
Total Liabilities | 20,292,628 | |||
(13,455,699 | ) | |||
Reversal of Foreign currency translation adjustments in other comprehensive income | 1,282,676 | |||
Gain on Disposal | $ | 12,173,023 |
2. | Deferred Financing Costs, Net |
Cost | $ | 1,214,997 | ||
Accumulated amortization | (1,063,222 | ) | ||
$ | 151,775 |
Year | Amount | |||
2011 | $ | 78,492 | ||
2012 | 48,911 | |||
2013 | 24,352 | |||
$ | 151,755 |
3. |
Cost | Accumulated amortization | Net book value | ||||||||||
Customer relationships | $ | 1,402,062 | $ | 1,360,594 | $ | 41,468 |
Term Notes |
June 30, 2011 | ||||
Cancable Note interest at prime plus 1.75% (minimum of 7%), due December 31, 2011 | $ | 5,148,754 | ||
Company Note interest at prime plus 2% (minimum of 7%), due December 31, 2011 | 7,287,500 | |||
Iview Note interest at prime plus 2% (minimum of 7%), due on December 31, 2011 | 1,564,873 | |||
Company Second Notes. interest at 12%, due on June 24, 2013 | 2,500,000 | |||
Less: unamortized discount | (680,446 | ) | ||
15,820,681 | ||||
Less: current portion | 14,001,128 | |||
$ | 1,819,553 |
Amount | ||||
2011 | $ | 14,001,128 | ||
2012 | - | |||
2013 | 1,819,553 | |||
$ | 15,820,681 |
September 16, 2011 | ||||
Cancable Note interest at prime plus 1.75% (minimum of 7%) | 5,148,754 | |||
Company Note interest at prime plus 2% (minimum of 7%) | 7,287,500 | |||
Company Second Notes. interest at 12% | 2,500,000 | |||
Less: unamortized discount | (1,082,175 | ) | ||
13,854,079 |
5. | Net Financing Expenses |
Six months ended June 30, | Nine months ended September 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Capital leases | $ | 191,198 | $ | 306,552 | ||||||||||||
Interest on credit facility and term notes | 789,484 | 771,607 | $ | 419,138 | $ | 466,642 | ||||||||||
Interest on deferred principal repayment of term note | 13,507 | 67,191 | 13,507 | 84,934 | ||||||||||||
Related parties | 27,223 | 26,421 | 40,987 | 39,781 | ||||||||||||
$ | 1,021,412 | $ | 1,171,771 | $ | 473,632 | $ | 591,357 |
6. | Note Payable to Related Parties |
7. | Income Taxes |
8. | Shareholders’ (Deficit) |
a. | Option Price. The price at which each share of common stock covered by an option granted under the Plan may not be less than the market value per share of the common stock on the date of grant of the option. The date of the grant of an option shall be the date specified by the Committee in its grant of the option, which date will normally be the date the Committee determines to make such grant. |
b. | Option Period. The period for exercise of an option shall in no event be more than five years from the date of grant. Options may, in the discretion of the Committee, be made exercisable in installments during the option period. |
c. | Exercise of Options. For the purpose of assisting an Optionee to exercise an option, the Company may make loans to the Optionee or guarantee loans made by third parties to the Optionee, on such terms and conditions as the Board of Directors may authorize. |
d. | Lock-Up Period. Without the consent of the Company, an Optionee may not sell more than fifty percent of the shares issued under the Plan for a period of two years from the date that the Optionee exercises the option. The Committee may also impose other terms and conditions, not inconsistent with the terms of the Plan, on the grant or exercise of options, as it deems advisable. |
Shares | Weighted-Average Exercise Price | Weighted-Average Remaining Contractual Term | Intrinsic Value | Shares | Weighted-Average Exercise Price | Weighted-Average Remaining Contractual Term | Intrinsic Value | |||||||||||||||||||||||||
Options | ||||||||||||||||||||||||||||||||
Outstanding at December 31, 2009 | 2,005,000 | $ | 0.65 | 4.75 | - | 2,005,000 | $ | 0.65 | 4.75 | - | ||||||||||||||||||||||
Granted | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Exercised | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Forfeited or expired | (405,000 | ) | $ | 0.63 | 0.96 | - | (405,000 | ) | $ | 0.63 | 0.96 | - | ||||||||||||||||||||
Outstanding at December 31, 2010 | 1,600,000 | $ | 0.65 | 1.04 | - | 1,600,000 | $ | 0.65 | 1.04 | - | ||||||||||||||||||||||
Granted | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Exercised | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Forfeited or expired | (25,000 | ) | $ | 0.63 | 0.25 | - | (1,240,000 | ) | $ | 0.63 | - | - | ||||||||||||||||||||
Outstanding at June 30, 2011 | 1,575,000 | $ | 0.65 | 0.56 | - | |||||||||||||||||||||||||||
Outstanding at September 30, 2011 | 360,000 | $ | 0.72 | 2.18 | - | |||||||||||||||||||||||||||
Exercisable at June 30, 2011 | 1,387,500 | $ | 0.65 | 0.21 | - | |||||||||||||||||||||||||||
Exercisable at September 30, 2011 | 232,500 | $ | 0.76 | 1.8 | - |
Exercise Price | Weighted Average Number Outstanding | Weighted Average Contractual Life | Weighted Average Exercise Price | Number Exercisable | Exercise Price | ||||||||||||||||||||||||||||||||||||||
Exercise Price | Exercise Price | Weighted Average Number Outstanding | Weighted Average Contractual Life | Weighted Average Exercise Price | Number Exercisable | Exercise Price | |||||||||||||||||||||||||||||||||||||
$ | 0.63 | 1,465,000 | 0.54 | $ | 0.63 | 1,280,000 | $ | 0.63 | 0.63 | 250,000 | 2.91 | $ | 0.63 | 125,000 | $ | 0.63 | |||||||||||||||||||||||||||
$ | 0.90 | 100,000 | 0.67 | $ | 0.90 | 100,000 | $ | 0.90 | 0.90 | 100,000 | 0.42 | $ | 0.90 | 100,000 | $ | 0.90 | |||||||||||||||||||||||||||
$ | 1.12 | 10,000 | 1.98 | $ | 1.12 | 7,500 | $ | 1.12 | 1.12 | 10,000 | 1.73 | $ | 1.12 | 7,500 | $ | 1.12 | |||||||||||||||||||||||||||
1,575,000 | 1,387,500 | 360,000 | 232,500 |
Number of Options | Weighted-Average Grant Date Fair Values | |||||||
Non-vested at January 1, 2011 | 217,500 | $ | 0.17 | |||||
Granted | - | - | ||||||
Vested | (30,000 | ) | $ | 0.22 | ||||
Canceled | - | - | ||||||
Non-vested at June 30, 2011 | 187,500 | $ | 0.14 |
Number of Options | Weighted-Average Grant Date Fair Values | |||||||
Non-vested at January 1, 2011 | 217,500 | $ | 0.17 | |||||
Granted | - | - | ||||||
Vested | (90,000 | ) | $ | 0.22 | ||||
Canceled | - | - | ||||||
Non-vested at June 30, 2011 | 127,500 | $ | 0.14 |
Issue Date | Expiry Date | Number of warrants | Exercise Price Per share | Value-issue date | Issued for | |||||||||||
09-30-2004 | 09-30-2016 | 2,250,000 | $ | 1.15 | $ | 1,370,000 | Financing | |||||||||
03-31-2005 | 03-31-2012 | 100,000 | $ | 1.20 | $ | 60,291 | Financing | |||||||||
04-30-2005 | 04-30-2017 | 100,000 | $ | 1.01 | $ | 44,309 | Financing | |||||||||
05-31-2005 | 05-31-2012 | 100,000 | $ | 1.01 | $ | 56,614 | Financing | |||||||||
06-22-2005 | 06-22-2017 | 313,000 | $ | 1.00 | $ | 137,703 | Financing | |||||||||
06-30-2005 | 06-30-2017 | 100,000 | $ | 0.90 | $ | 50,431 | Financing | |||||||||
07-31-2005 | 07-31-2012 | 100,000 | $ | 1.05 | $ | 56,244 | Financing | |||||||||
08-31-2005 | 08-31-2012 | 100,000 | $ | 1.05 | $ | 22,979 | Financing | |||||||||
09-30-2005 | 09-30-2012 | 100,000 | $ | 0.80 | $ | 36,599 | Financing | |||||||||
10-31-2005 | 10-31-2012 | 100,000 | $ | 0.80 | $ | 27,367 | Financing | |||||||||
11-30-2005 | 11-30-2012 | 100,000 | $ | 0.80 | $ | 16,392 | Financing | |||||||||
12-31-2005 | 12-31-2012 | 100,000 | $ | 0.80 | $ | 10,270 | Financing | |||||||||
02-13-2006 | 02-13-2016 | 1,927,096 | $ | 0.01 | $ | 1,529,502 | Financing | |||||||||
03-01-2007 | 03-01-2016 | 108,000 | $ | 0.90 | $ | 39,519 | Financing | |||||||||
04-01-2007 | 04-01-2016 | 108,000 | $ | 1.15 | $ | 50,529 | Financing | |||||||||
07-01-2007 | 07-01-2011 | 108,000 | $ | 2.10 | $ | 93,307 | Financing | |||||||||
08-01-2007 | 08-01-2011 | 108,000 | $ | 2.55 | $ | 112,117 | Financing | |||||||||
09-01-2007 | 09-01-2011 | 108,000 | $ | 2.73 | $ | 118,647 | Financing | |||||||||
10-01-2007 | 10-01-2011 | 108,000 | $ | 2.43 | $ | 105,362 | Financing | |||||||||
11-01-2007 | 11-01-2011 | 108,000 | $ | 2.60 | $ | 111,868 | Financing | |||||||||
12-01-2007 | 12-01-2011 | 108,000 | $ | 2.55 | $ | 107,284 | Financing | |||||||||
01-01-2008 | 01-01-2012 | 108,000 | $ | 2.84 | $ | 108,331 | Financing | |||||||||
01-22-2008 | 01-22-2058 | 812,988 | $ | 0.01 | $ | 1,470,687 | Acquisition | |||||||||
01-22-2008 | 01-22-2058 | 1,738,365 | $ | 0.01 | $ | 3,144,685 | Financing | |||||||||
01-30-2008 | 01-30-2058 | 506,250 | $ | 0.01 | $ | 1,001,909 | Financing | |||||||||
01-30-2008 | 01-30-2058 | 292,500 | $ | 0.01 | $ | 578,880 | Financing | |||||||||
02-01-2008 | 02-01-2012 | 108,000 | $ | 2.09 | $ | 85,612 | Financing | |||||||||
03-01-2008 | 03-01-2012 | 108,000 | $ | 2.04 | $ | 80,253 | Financing | |||||||||
04-01-2008 | 04-01-2012 | 108,000 | $ | 1.09 | $ | 162,748 | Financing | |||||||||
05-01-2008 | 05-01-2012 | 108,000 | $ | 1.19 | $ | 103,180 | Financing | |||||||||
06-01-2008 | 06-01-2012 | 108,000 | $ | 1.02 | $ | 88,114 | Financing | |||||||||
06-23-2008 | 06-23-2018 | 627,451 | $ | 0.01 | $ | 560,736 | Financing | |||||||||
06-23-2008 | 06-23-2018 | 1,333,333 | $ | 0.01 | $ | 1,211,168 | Financing | |||||||||
02-01-2009 | 02-01-2013 | 108,000 | $ | 0.25 | $ | 22,728 | Financing | |||||||||
03-01-2009 | 03-01-2013 | 108,000 | $ | 0.19 | $ | 17,277 | Financing | |||||||||
04-01-2009 | 04-01-2013 | 108,000 | $ | 0.18 | $ | 15,868 | Financing | |||||||||
05-01-2009 | 05-01-2013 | 108,000 | $ | 0.16 | $ | 14,557 | Financing | |||||||||
06-01-2009 | 06-01-2013 | 108,000 | $ | 0.27 | $ | 24,105 | Financing | |||||||||
07-01-2009 | 07-01-2013 | 108,000 | $ | 0.27 | $ | 24,105 | Financing | |||||||||
08-01-2009 | 08-01-2013 | 108,000 | $ | 0.25 | $ | 22,786 | Financing | |||||||||
09-01-2009 | 09-01-2013 | 108,000 | $ | 0.16 | $ | 14,567 | Financing | |||||||||
10-01-2009 | 10-01-2013 | 108,000 | $ | 0.12 | $ | 10,921 | Financing | |||||||||
11-01-2009 | 11-01-2013 | 108,000 | $ | 0.15 | $ | 13,656 | Financing | |||||||||
12-01-2009 | 12-01-2013 | 108,000 | $ | 0.08 | $ | 7,275 | Financing | |||||||||
01-01-2010 | 01-01-2014 | 108,000 | $ | 0.08 | $ | 7,292 | Financing | |||||||||
02-01-2010 | 02-01-2014 | 108,000 | $ | 0.12 | $ | 10,925 | Financing | |||||||||
03-01-2010 | 03-01-2014 | 108,000 | $ | 0.08 | $ | 25,484 | Financing | |||||||||
04-01-2010 | 04-01-2014 | 108,000 | $ | 0.09 | $ | 8,461 | Financing | |||||||||
05-01-2010 | 05-01-2014 | 108,000 | $ | 0.07 | $ | 8,457 | Financing | |||||||||
06-01-2010 | 06-01-2014 | 108,000 | $ | 0.07 | $ | 6,572 | Financing | |||||||||
07-01-2010 | 07-01-2014 | 108,000 | $ | 0.07 | $ | 6,566 | Financing | |||||||||
08-01-2010 | 08-01-2014 | 108,000 | $ | 0.07 | $ | 6,562 | Financing | |||||||||
09-01-2010 | 09-01-2014 | 108,000 | $ | 0.05 | $ | 4,615 | Financing | |||||||||
10-01-2010 | 10-01-2014 | 108,000 | $ | 0.05 | $ | 4,613 | Financing | |||||||||
11-01-2010 | 11-01-2014 | 108,000 | $ | 0.04 | $ | 1,844 | Financing | |||||||||
12-01-2010 | 12-01-2014 | 108,000 | $ | 0.04 | $ | 3,200 | Financing | |||||||||
12-31-2010 | 12-31-2014 | 200,000 | $ | 0.03 | $ | 5,051 | Consulting | |||||||||
01-01-2011 | 01-01-2015 | 108,000 | $ | 0.03 | $ | 3,200 | Financing | |||||||||
02-01-2011 | 02-01-2015 | 108,000 | $ | 0.03 | $ | 3,200 | Financing | |||||||||
03-01-2011 | 03-01-2015 | 108,000 | $ | 0.03 | $ | 3,200 | Financing | |||||||||
04-01-2011 | 04-01-2015 | 108,000 | $ | 0.03 | $ | 1,302 | Financing | |||||||||
05-01-2011 | 05-01-2015 | 108,000 | $ | 0.03 | $ | 1,302 | Financing | |||||||||
06-01-2011 | 06-01-2015 | 108,000 | $ | 0.02 | $ | 1,302 | Financing | |||||||||
15,644,983 |
June 30, 2011 | June 30, 2010 | |||||||
Sales: | ||||||||
Cancable | $ | 14,508,050 | $ | 15,933,108 | ||||
AC Technical | 4,393,063 | 3,576,632 | ||||||
Iview | 52,040 | 36,320 | ||||||
Creative Vistas, Inc. | 1,420 | 1,399 | ||||||
Consolidated Total | $ | 18,954,573 | $ | 19,547,459 | ||||
Depreciation and amortization: | ||||||||
Cancable | $ | 866,316 | $ | 1,142,055 | ||||
AC Technical | 21,210 | 20,946 | ||||||
Iview | 19,844 | 20,203 | ||||||
Consolidated Total | $ | 907,370 | $ | 1,183,204 | ||||
Interest expense: | ||||||||
Cancable | $ | 668,633 | $ | 771,837 | ||||
Iview | 55,570 | 49,844 | ||||||
AC Acquisition | 27,223 | 26,421 | ||||||
Creative Vistas, Inc. | 269,986 | 323,669 | ||||||
Consolidated Total | $ | 1,021,412 | $ | 1,171,771 | ||||
Net (Loss): | ||||||||
Cancable | $ | (171,230 | ) | $ | (765,194 | ) | ||
AC Technical | 277,858 | 202,836 | ||||||
Iview | (48,206 | ) | (51,644 | ) | ||||
AC Acquisition | 58,894 | (26,421 | ) | |||||
Corporate (1) | (123,652 | ) | (426,300 | ) | ||||
Consolidated Total | $ | (6,336 | ) | $ | (1,066,723 | ) | ||
Total Assets | ||||||||
Cancable | $ | 6,047,403 | $ | 8,798,549 | ||||
AC Technical | 3,532,067 | 3,193,054 | ||||||
Iview | 526,214 | 757,445 | ||||||
Creative Vistas, Inc. | 770,313 | 1,353,033 | ||||||
Consolidated Total | $ | 10,875,997 | $ | 14,102,081 | ||||
Property, plant and equipment | ||||||||
Cancable | $ | 2,693,900 | $ | 4,547,587 | ||||
AC Technical | 774,927 | 745,622 | ||||||
Iview | 2,574 | 40,779 | ||||||
Consolidated Total | $ | 3,471,401 | $ | 5,333,988 | ||||
Property, Plant and Equipment Expenditures | ||||||||
Cancable | $ | 25,259 | $ | 30,592 | ||||
AC Technical | 3,656 | 6,374 | ||||||
Iview | - | - | ||||||
Consolidated Total | $ | 28,915 | $ | 36,966 |
September 30, 2011 | September 30, 2010 | |||||||
Sales: | ||||||||
AC Technical | $ | 5,868,160 | $ | 5,330,094 | ||||
Iview | 47,910 | 45,960 | ||||||
Creative Vistas, Inc. | 1,750 | 1,956 | ||||||
Consolidated Total | $ | 5,917,820 | $ | 5,378,010 | ||||
Depreciation and amortization: | ||||||||
AC Technical | $ | 31,579 | $ | 31,336 | ||||
Iview | 22,392 | 30,256 | ||||||
Consolidated Total | $ | 53,971 | $ | 61,592 | ||||
Interest expense: | ||||||||
Iview | 74,804 | 79,801 | ||||||
AC Acquisition | 40,987 | 39,780 | ||||||
Creative Vistas, Inc. | 357,841 | 471,776 | ||||||
Consolidated Total | $ | 473,632 | $ | 591,357 | ||||
Loss from continuing operations | ||||||||
AC Technical | $ | (9,680 | ) | $ | (117,310 | ) | ||
Iview | (287,228 | ) | (173,894 | ) | ||||
AC Acquisition | (40,987 | ) | (39,780 | ) | ||||
Creative Vistas, Inc. | (646,454 | ) | (829,857 | ) | ||||
Consolidated Total | $ | (984,349 | ) | $ | (1,160,841 | ) | ||
Total Assets | ||||||||
AC Technical | $ | 2,610,918 | $ | 3,116,884 | ||||
Iview | 125,677 | 823,509 | ||||||
Creative Vistas, Inc. | 797,062 | 1,154,042 | ||||||
Consolidated Total | $ | 3,533,657 | $ | 5,094,435 | ||||
Property, plant and equipment | ||||||||
AC Technical | $ | 707,173 | $ | 856,848 | ||||
Iview | - | 31,816 | ||||||
Consolidated Total | $ | 707,173 | $ | 888,664 | ||||
Property, Plant and Equipment Expenditures | ||||||||
AC Technical | $ | 4,692 | $ | 6,374 | ||||
Iview | - | 345 | ||||||
Consolidated Total | $ | 4,692 | $ | 6,719 |
June 30, 2011 | June 30, 2010 | September 30, 2011 | September 30, 2010 | |||||||||||||
Contract | $ | 3,721,569 | $ | 2,776,818 | $ | 4,857,989 | $ | 4,248,529 | ||||||||
Service | 15,231,545 | 16,768,246 | 1,058,045 | 1,126,498 | ||||||||||||
Others | 1,459 | 2,395 | 1,786 | 2,983 | ||||||||||||
Total sales to external customers | $ | 18,954,573 | $ | 19,547,459 | $ | 5,917,820 | $ | 5,378,010 |
Item 2. | Management's Discussion And Analysis of Financial Condition and Results of Operations |
Item 4. | Controls and Procedures |
PART II. | OTHER INFORMATION |
Item 1. | Legal Proceedings |
Item 1A. | Risk Factors |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds |
Item 3. | Defaults upon Senior Securities |
Item 4. | [Removed and Reserved] |
Item 5. | Other Information |
Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | ||
Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | ||
Chief Executive Officer certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | ||
Chief Financial Officer certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | ||
99.2+ | Stock Purchase Agreement is incorporated by reference to Exhibit 99.2 to the Company's Current Report on Form 8-K filed on September 16, 2011 (SEC file number: 000-30585) | |
99.3+ | Assignment and Assumption Agreement (Valens Debt Assignment and Assumption), dated September 16, 2011, between the Company and Cancable is incorporated by reference to Exhibit 99.3 to the Company's Current Report on Form 8-K filed on September 16, 2011 | |
99.4+ | Assignment and Assumption Agreement (Intercompany Receivables), dated September 16, 2011, between the Company and Cancable is incorporated by reference to Exhibit 99.4 to the Company's Current Report on Form 8-K filed on September 16, 2011 | |
99.5+ | Assignment and Assumption Agreement (Side Agreement), dated September 16, 2011, between the Company and Cancable is incorporated by reference to Exhibit 99.5 to the Company's Current Report on Form 8-K filed on September 16, 2011 |
CREATIVE VISTAS, INC. | |
By: | /s/ Dominic Burns |
Dominic Burns, CEO |
By: | /s/ Heung Hung Lee |
Heung Hung Lee, CFO |