United states
Securities and Exchange Commission
Washington, D.C. 20549
____________________
FORM 10-Q
____________________
(Mark One)
x Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the quarterly period ended June 30, 2009
¨ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act
For the transition period from __________ to __________
__________________
Commission File Number: 0-52556
____________________
Card Activation Technologies, Inc.
(Exact name of registrant as specified in its charter)
Delaware | 20-5769015 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
53 West Jackson Blvd., Suite 1618 Chicago, Illinois | 60604-3749 |
(Address of principal executive offices) | (Zip Code) |
(312) 972-1662
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports required 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 x No ¨
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files. Yes ¨ No ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non–accelerated filer, or a smaller reporting company. See definitions of "large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b–2 of the Exchange Act.
Large accelerated filer ¨ | Accelerated filer ¨ |
Non–Accelerated filer ¨ (Do not check if a smaller reporting company) | Smaller reporting company x |
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b–2 of the Exchange Act). Yes ¨ No x
As of August 20, 2009, the issuer had 174,782,045 shares of common stock, $0.001 par value per share, outstanding.
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Item 2. | 7 | |||
Item 3. | 9 | |||
Item 4T. | 9 | |||
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Item 1. | 10 | |||
Item 6. | 10 |
CONDENSED BALANCE SHEETS
June 30, | September 30, | |||||||
2009 | 2008 | |||||||
(Unaudited) | ||||||||
CURRENT ASSETS | ||||||||
Cash | $ | 61,697 | $ | - | ||||
Notes receivable - affiliate | 812,437 | 507,149 | ||||||
Total current assets | 874,134 | 507,149 | ||||||
TOTAL ASSETS | $ | 874,134 | $ | 507,149 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY: | ||||||||
CURRENT LIABILITIES: | ||||||||
Bank overdraft | $ | - | $ | 1,963 | ||||
Accounts payable | 29,998 | 20,859 | ||||||
Accrued expenses | - | 28,960 | ||||||
Total current liabilities | 29,998 | 51,782 | ||||||
TOTAL LIABILITIES | 29,998 | 51,782 | ||||||
STOCKHOLDERS' EQUITY: | ||||||||
Preferred stock, $.001 par value, 1,000,000 shares authorized; zero shares issued and outstanding | - | - | ||||||
Common stock, $.0001 par value, 300,000,000 shares authorized;174,782,045 and 169,968,289 shares issued and outstanding as of June 30, 2009 and September 30, 2008 | 17,479 | 16,998 | ||||||
Additional paid-in capital | 1,490,552 | 1,055,845 | ||||||
Accumulated deficit | (663,895 | ) | (617,476 | ) | ||||
Total stockholders' equity | 844,136 | 455,367 | ||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 874,134 | $ | 507,149 |
The accompanying notes are an integral part of these condensed financial statements.
CONDENSED STATEMENTS OF OPERATIONS
Three Months Ended | Nine Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
(Unaudited) | ||||||||||||||||
REVENUE | ||||||||||||||||
Litigation revenue | $ | 108,000 | $ | - | $ | 655,500 | $ | - | ||||||||
Total | 108,000 | - | 655,500 | - | ||||||||||||
OPERATING EXPENSES: | ||||||||||||||||
General and administrative | 70,068 | 190,150 | 730,423 | 328,992 | ||||||||||||
Sales and marketing expenses | - | 38,807 | 7,706 | 59,644 | ||||||||||||
Total operating expenses | 70,068 | 228,957 | 738,129 | 388,636 | ||||||||||||
OPERATING INCOME (LOSS) | 37,932 | (228,957 | ) | (82,629 | ) | (388,636 | ) | |||||||||
OTHER (INCOME) AND EXPENSES | ||||||||||||||||
Interest income | (13,757 | ) | - | (36,211 | ) | - | ||||||||||
INCOME (LOSS) BEFORE INCOME TAXES | 51,689 | (228,957 | ) | (46,418 | ) | (388,636 | ) | |||||||||
INCOME TAX (BENEFIT) PROVISION | - | - | - | - | ||||||||||||
NET LOSS | $ | 51,689 | $ | (228,957 | ) | $ | (46,418 | ) | $ | (388,636 | ) | |||||
Weighted Average Common Share Outstanding: | ||||||||||||||||
Basic and diluted: | 174,742,045 | 146,770,504 | 174,292,961 | 146,770,504 | ||||||||||||
Net Income (Loss) Per Share | ||||||||||||||||
Basic and diluted: | $ | (0.00 | ) | $ | (0.00 | ) | $ | (0.00 | ) | $ | (0.00 | ) |
The accompanying notes are an integral part of these condensed financial statements.
CONDENSED STATEMENTS OF CASH FLOWS
Nine Months Ended | ||||||||
June 30, | ||||||||
2009 | 2008 | |||||||
(Unaudited) | ||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net (loss) | $ | (46,419 | ) | $ | (388,636 | ) | ||
Adjustments to reconcile net income to net cash (used in) operating activities: | ||||||||
Common stock issued for services | 38,688 | 271,950 | ||||||
Common stock issued in conjunction with related party issuance | - | 1,764 | ||||||
Changes in assets and liabilities: | ||||||||
Prepaid expenses | - | (20,000 | ) | |||||
Accounts payables | 9,139 | (19,500 | ) | |||||
Accrued expenses | (28,960 | ) | - | |||||
Net cash used in operating activities | (27,552 | ) | (154,422 | ) | ||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Loans to affiliates | (601,611 | ) | (321,009 | ) | ||||
Net cash from investing activities | (601,611 | ) | (321,009 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
Bank overdraft | (1,963 | ) | - | |||||
Repayment of notes from affiliates | - | (261,142 | ) | |||||
Proceeds from the sale of common stock | 102,500 | 642,950 | ||||||
Loans from affiliates | 296,323 | 96,000 | ||||||
Common stock issued in conjunction with related party issuance | 294,000 | - | ||||||
Net cash provided by financing activities | 690,860 | 477,808 | ||||||
INCREASE IN CASH | 61,697 | 2,377 | ||||||
CASH, BEGINNING OF YEAR | - | 13,699 | ||||||
CASH, END OF YEAR | $ | 61,697 | $ | 16,076 |
The accompanying notes are an integral part of these condensed financial statements
NOTES TO CONDENSED FINANCIAL STATEMENTS
(Unaudited)
Note 1. Background
Card Activation Technologies, Inc. ("we," "us," "our" or the "Company") was incorporated in the state of Delaware on August 29, 2006. The Company was incorporated in order to own and commercially develop our patented point-of-sales technology for the activation and processing of transactions related to debit styled cards, which include gift cards, phone cards and other stored value cards. We also vigorously defend our patent and actively litigate infringements related to the unauthorized use of our technology. The patent was transferred to us by MedCom USA, Incorporated ("MedCom") upon our formation in exchange for 146,770,504 shares of our common stock. The patent covers the technology and process for taking a card with a magnetic strip or other data capture mechanism and activating the card by downloading a determined monetary value onto the card for use at a later date for different types of transactions.
Note 2. Basis of Presentation
The accompanying condensed financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America which contemplate continuation of the Company as a going concern. During the nine months ended June 30, 2009 the Company recognized a net loss of $46,418 and has incurred an accumulated net loss through June 30, 2009 of $663,895. Further, the Company has inadequate working capital to maintain or develop its operations, and is dependent upon funds from private investors and the support of certain stockholders.
These factors raise substantial doubt about the ability of the Company to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of these uncertainties. In this regard, our management is proposing to raise any necessary additional funds through loans and additional sales of our common stock. There is no assurance that the Company will be successful in raising additional capital.
The accompanying condensed financial statements included herein have been prepared by us, without audit, in accordance with the accounting policies described in our audited financial statements and notes thereto for the fiscal year ended September 30, 2008, as presented in our annual report on Form 10-K, and pursuant to the rules and regulations of the Securities and Exchange Commission, or the SEC. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to such rules and regulations, although we believe that the disclosures are adequate to make the information presented not misleading. In the opinion of our management, the accompanying condensed financial statements include all adjustments (consisting only of those of a normal recurring nature), which are necessary for a fair presentation of the results for the interim periods presented. Interim results are not necessarily indicative of results to be expected for any future interim period or for the entire fiscal year.
These condensed financial statements should be read in conjunction with the notes to the 2008 audited financial statements presented in our annual report on Form 10-K for the year ended September 30, 2008, filed with the SEC. Our reports are available electronically by visiting the SEC website at http://www.sec.gov.
Recent Accounting Pronouncements
In June 2009, the FASB issued Statement of Financial Accounting Standards (“SFAS”) No. 168, The FASB Accounting Standards CodificationTM and the Hierarchy of Generally Accepted Accounting Principles – A Replacement of FASB Statement No. 162 (“SFAS 168”). SFAS 168 establishes the FASB Accounting Standards Codification (“the Codification”) as the source of authoritative accounting principles recognized by the FASB to be applied by nongovernmental entities in the preparation of financial statements in conformity with GAAP. SFAS 168 is effective for financial statements issued for interim and annual periods ending after September 15, 2009. We will begin to use the new Codification when referring to GAAP in our annual report on Form 10-K for the year ending September 30, 2009. This will not have an impact on our financial statements.
In May 2009, the FASB issued SFAS No. 165, Subsequent Events (“SFAS 165”). SFAS 165 establishes general standards of accounting for and disclosure of events that occur after the balance sheet date but before the financial statements are issued. SFAS 165 is effective for interim and annual periods ending after June 15, 2009. This SFAS requires disclosure of the date through which an entity has evaluated subsequent events and the basis for that date. The adoption of SFAS 165 did not have a material impact on our consolidated financial statements.
In June 2008, the FASB issued FSP Emerging Issues Task Force ("EITF") Issue No. 03-6-1, "Determining Whether Instruments Granted in Share-Based Payment Transactions Are Participating Securities." The FSP addresses whether instruments granted in share-based payment transactions are participating securities prior to vesting and, therefore, need to be included in the earnings allocation in computing earnings per share under the two-class method. The FSP affects entities that accrue dividends on share-based payment awards during the awards' service period when the dividends do not need to be returned if the employees forfeit the award. This FSP is effective for fiscal years beginning after December 15, 2008. The Company is currently assessing the impact of FSP EITF 03-6-1 on its financial position and results of operations.
Note 3. Related Party Transactions
As of June 30, 2009, the Company was managed by its sole officer and director, Robert Kite. Michael De La Garza previously served as a director of the Company and as the Company's President and Chief Executive Officer. On April 27, 2009, holders of more than a majority of the outstanding shares of the Company's common stock, acting by written consent, effected the removal of Mr. De La Garza from the Company's Board of Directors. Following Mr. De La Garza's removal as a director by stockholders, Mr. Kite, the Company's sole director, acted to remove Mr. De La Garza from his position as President and Chief Executive Officer. Mr. Kite now serves as sole director and Chairman of the Company's Board of Directors and acts as the Company's principal executive and principal financial officer. Mr. Kite also serves as chairman of the board of directors, president and chief executive officer of MedCom, a related party, and owns shares of common stock of both MedCom and the Company. MedCom is also a significant shareholder of the Company.
On June 4, 2009, the Company entered into a settlement agreement with Mr. De La Garza, MedCom, certain shareholders of MedCom, Robin De La Garza, Mr. De La Garza’s spouse, PayMed USA, LLC, and Absolute Medical Software Systems, LLC (the "Settlement Agreement"). The Settlement Agreement resolved pending Arizona state court litigation against Mr. De La Garza, in which the Company's largest shareholder, MedCom, sought, among other things, injunctive and declaratory relief that Mr. De La Garza was not authorized to act on behalf of MedCom as an officer or director. The Settlement Agreement became effective upon entry by the U.S. Bankruptcy Court for the District of Arizona of an Order, dated July 28, 2009, dismissing the bankruptcy proceeding against MedCom.
Under the terms of the Settlement Agreement, for the avoidance of any doubt, Mr. De La Garza resigned from the board of directors and from the offices of president and chief executive officer of MedCom. Mr. De La Garza also resigned from the Board of Directors and offices of President and Chief Executive Officer of the Company, which resolved any potential disputes relating to his removal from such offices in April 2009, as discussed above.
On October 1, 2008 the Company issued 96,000 shares of common stock to a related party, American Nortel Communications Inc. The issuances were valued at $.088 per share and the Company recognized compensation expenses to William P. Williams of $8,448.
On October 21, 2008, the Company issued 3,000,000 shares of common stock in benefit of its related party, MedCom, for that company's acquisition of MedPay LLC. The value of the shares was $.088 per share, its trading value at the date of issue. The Company recorded a receivable from MedCom in the amount of $294,000. In connection with the Settlement Agreement discussed above, this transaction will be unraveled whereby the ownership of MedPay LLC will revert back to the previous owner and the shares of our common stock will be returned to us.
On December 4, 2008 the Company issued 96,000 shares of common stock to a related party, American Nortel Communications Inc. The issuances were valued at $.089 per share and the Company recognized compensation expenses to William P. Williams of $8,630.
During the three months ended December 31, 2008 the Company entered into subscription agreements for 1,381,756 shares of common stock to third parties. The shares were valued at their closing price for a total amount of $102,500.
On January 15, 2009, we issued 240,000 shares to a related party, Wilcom, Inc., valued at $0.10 per share which was its trading value on the date of issue. We recognized compensation expense in the amount of $21,600.
On July 1, 2008 the Company entered into a revolving line of credit with MedCom whereby the Company could borrow up to $750,000 from MedCom. The terms of the agreement provide a 7% interest rate per annum. As of June 30, 2009 no amounts were due under the revolving line of credit.
The Company also advances funds to MedCom. During the three and nine months ended June 30, 2009 the Company entered into subscription agreements whereby it sold its shares of common stock to third parties. The shares were valued at their closing price on the date of the agreements. The funds from the sale of some shares of common stock sold by the Company during the three and nine months ended June 30, 2009 were deposited with MedCom. The Company has recorded a receivable due from MedCom as a result of the deposit of the funds related to the issuances of the Company's shares of common stock to third parties. As of June 30, 2009 the Company had a receivable from affiliate advances in the amount of $812,437 in which the Company recognizes a 7% interest rate on that advance.
Note 4. Commitments and Contingencies
The Company has entered into various consulting agreements with outside consultants. However, certain of these agreements included additional compensation on the basis of performance. The consulting agreements are with key shareholders that are instrumental to the success of the Company.
The Company, through its attorneys Orum and Roth, has sent letters to over 600 potential parties believed to be infringing on our patent, placing them on notice of the patent and seeking a license agreement under the patent. We have sued 18 parties and settled with 10 parties. We have a contingency agreement with our attorneys whereby they receive contingency fees in the amount of 35% of amounts recovered.
The Company is a plaintiff, along with MedCom, in a pending lawsuit against prior management, Michael Malet and Annette Malet, and William P. Williams, Eva S. Williams and certain of their affiliated entities, Wilcom, Inc., a Texas Corporation, WPW Aircraft LLC, an Arizona Limited Liability Corporation and American Nortel Communications, Inc., a Nevada Corporation, which was filed in February 2009 in the United States District Court in the District of Arizona (Case No. 2:09-cv-00298). The Company has alleged nine causes of action including, among other things, securities fraud, racketeering, and other state law causes of actions, which relate to alleged acts arising out of certain of the defendants' prior service as management of the Company and MedCom. The Company and MedCom are seeking certain compensatory damages, punitive damages, treble damages, injunctive relief and disgorgement of personal profits and compensation realized by the defendants and reasonable attorneys' fees, costs and expenses associated with the lawsuit. In August 2009, the parties filed a stipulation for dismissal without prejudice, which is yet to be approved by the court. The parties intend to seek to resolve the claims outside the context of a court proceeding. To this end, the parties have entered into tolling agreements preserving claims against statutes of limitations and other applicable time-based defenses. If the parties can't reach a resolution, the Company and MedCom may seek to reinstate the litigation. The Company is uncertain of the legal costs associated with this suit or its ultimate outcome.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
With the exception of historical facts, the matters discussed in this quarterly report on Form 10-Q are forward looking statements. Forward-looking statements may relate to, among other things, future actions, future performance generally, business development activities, future capital expenditures, strategies, the outcome of contingencies such as legal proceedings, future financial results, financing sources and availability and the effects of regulation and competition. When we use the words "believe," "intend," "expect," "may," "will," "should," "anticipate," "could," "estimate," "plan," "predict," "project," or their negatives, or other similar expressions, the statements which include those words are usually forward-looking statements. When we describe strategy that involves risks or uncertainties, we are making forward-looking statements.
These forward-looking statements are based on the current plans and expectations of our management and are subject to certain risks and uncertainties that could cause actual results to differ materially from historical results or those anticipated. These factors include, but are not limited to: the success of our Markman hearing, our failure to satisfy our working capital needs from operations and the availability of and costs associated with potential sources of financing.
You should also read, among other things, the risks and uncertainties described in the section entitled Risk Factors in item 1A of our annual report on Form 10-K, filed with the SEC.
We warn you that forward-looking statements are only predictions. Actual events or results may differ as a result of risks that we face. Forward-looking statements speak only as of the date they were made, and we undertake no obligation to update them.
The following discussion contains management's discussion and analysis of financial condition and results of operations. Management's discussion and analysis should be read in conjunction with "Item 1. Financial Statements" of this quarterly report on Form 10-Q and Management's Discussion and Analysis of Financial Condition and Results of Operations presented in our annual report on Form 10-K for the year ended September 30, 2008.
Overview
Card Activation Technologies Inc. ("we," "us," "our" or the "Company") is a Delaware corporation headquartered in Chicago, Illinois. We were formed to acquire, license and enforce a patent relating to point-of-sale technology for the activation and processing of transactions related to debit styled cards, which include gift cards, phone cards and other stored value cards. The patent was transferred to us by MedCom USA, Incorporated ("MedCom") upon our formation in exchange for 146,770,504 shares of our common stock. On October 31, 2006, the MedCom board of directors declared a stock dividend to its shareholders of record at the end of business on December 15, 2006 of one share of our common stock for every one share of common stock of MedCom owned by MedCom's shareholders, such stock being distributed on March 1, 2007. This was a dividend of 86,770,504 shares of our common stock. MedCom retained the balance of 60,000,000 shares of our common stock. MedCom is a publicly traded Delaware corporation, headquartered in Scottsdale, Arizona. (EMED.OB).
RESULTS OF OPERATIONS
Three and Nine Months Ended June 30, 2009, Compared to Three and Nine Months Ended June 30, 2008
We have generated $108,000 and $655,500 from patent infringement litigation revenue for the three and nine month periods ended June 30, 2009, respectively, and no royalty revenue for licensing the patent during such periods. We generated no revenue for the three and nine month periods ended June 30, 2008.
Liquidity and Capital Resources
The Company's operating requirements have been funded primarily from the sale of our common stock and we have received $102,500 from such sale during the nine months ended June 30, 2009. From time to time the Company advances funds to MedCom. As of June 30, 2009 we were owed $812,437 including interest from related parties. Currently, the Company's costs are limited to professional fees, administrative costs and contingency fees from our patent litigation attorneys. We have not received any royalty revenues to date but believe such royalties will permit us to be self-funding upon commencement. In addition, we are looking at expanding our market and researching potential acquisitions that complement the Company, although no such prospective acquisition candidates have been identified.
We are attempting to raise additional working capital through the sale of equity, debt or a combination of equity and debt. We do not presently have any firm commitments for additional working capital and there are no assurances that such capital will be available to us when needed or upon terms and conditions which are acceptable to us. If we are able to secure additional working capital through the sale of equity securities, the ownership interests of our current stockholders will be diluted. If we raise additional working capital through the issuance of debt or additional dividend paying securities our future interest and dividend expenses will increase. If we are unable to secure additional working capital as needed, our ability to grow our sales, meet our operating and financing obligations as they become due and continue our business and operations could be in jeopardy.
Other Considerations
There are numerous factors that affect the business and the results of its operations. Sources of these factors include general economic and business conditions, federal and state regulation of business activities, the level of demand for product services, and the ability to develop new services based on new or evolving technology and the market's acceptance of those new services, the Company's ability to timely and effectively manage periodic product transitions, the services, and our ability to continue to improve our infrastructure including personnel and systems to keep pace with the Company's anticipated rapid growth.
Recently Issued Accounting Pronouncements
In June 2009, the FASB issued Statement of Financial Accounting Standards (“SFAS”) No. 168, The FASB Accounting Standards CodificationTM and the Hierarchy of Generally Accepted Accounting Principles – A Replacement of FASB Statement No. 162 (“SFAS 168”). SFAS 168 establishes the FASB Accounting Standards Codification (“the Codification”) as the source of authoritative accounting principles recognized by the FASB to be applied by nongovernmental entities in the preparation of financial statements in conformity with GAAP. SFAS 168 is effective for financial statements issued for interim and annual periods ending after September 15, 2009. We will begin to use the new Codification when referring to GAAP in our annual report on Form 10-K for the year ending September 30, 2009. This will not have an impact on our financial statements.
In May 2009, the FASB issued SFAS No. 165, Subsequent Events (“SFAS 165”). SFAS 165 establishes general standards of accounting for and disclosure of events that occur after the balance sheet date but before the financial statements are issued. SFAS 165 is effective for interim and annual periods ending after June 15, 2009. This SFAS requires disclosure of the date through which an entity has evaluated subsequent events and the basis for that date. The adoption of SFAS 165 did not have a material impact on our consolidated financial statements.
In June 2008, the FASB issued FSP Emerging Issues Task Force ("EITF") Issue No. 03-6-1, "Determining Whether Instruments Granted in Share-Based Payment Transactions Are Participating Securities." The FSP addresses whether instruments granted in share-based payment transactions are participating securities prior to vesting and, therefore, need to be included in the earnings allocation in computing earnings per share under the two-class method. The FSP affects entities that accrue dividends on share-based payment awards during the awards' service period when the dividends do not need to be returned if the employees forfeit the award. This FSP is effective for fiscal years beginning after December 15, 2008. The Company is currently assessing the impact of FSP EITF 03-6-1 on its financial position and results of operations.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Not applicable.
ITEM 4T. CONTROLS AND PROCEDURES
Evaluation of Disclosure Controls and Procedures
Our principal executive officer, who also serves as our principal financial officer, evaluated the effectiveness of the design and operation of our disclosure controls and procedures as such term is defined under Rule 13a-15(e) promulgated under the Securities Exchange Act of 1934, as amended (Exchange Act), as of the end of the period covered by this report. Based on that evaluation, our principal executive officer has concluded that our disclosure controls and procedures may not be effective for ensuring that information required to be disclosed by us in the reports that we file or submit under the Exchange Act, is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms. The Company is in the process of evaluating our disclosure controls and procedures in an effort to develop remedial measures to correct the deficiencies.
Changes in Internal Control Over Financial Reporting
There were no changes in our internal control over financial reporting that occurred during our last fiscal quarter (the quarter ended June 30, 2009) that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
The information disclosed under Notes 3 and 4 to the Company's Condensed Financial Statements (unaudited) of Part I of this quarterly report on Form 10-Q is incorporated herein by reference.
Certification of Principal Executive and Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act |
Certification of Principal Executive and Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
Card Activation Technologies, Inc. | ||
Dated: August 27, 2009 | By: | /s/ Robert Kite |
Robert Kite | ||
Chairman, President and Chief Executive Officer (Principle Executive Officer and Principal Financial Officer) |
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