Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Sep. 30, 2013 | Nov. 18, 2013 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'RTS OIL HOLDINGS, INC. | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-13 | ' |
Amendment Flag | 'false | ' |
Entity Central Index Key | '0001425264 | ' |
Current Fiscal Year End Date | '--03-31 | ' |
Entity Common Stock, Shares Outstanding | ' | 33,333,334 |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Voluntary Filers | 'No | ' |
Entity Well-known Seasoned Issuer | 'No | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Sep. 30, 2013 | Mar. 31, 2013 |
In Thousands, unless otherwise specified | ||
CURRENT ASSETS | ' | ' |
Cash and cash equivalents | $1,605 | $3 |
Accounts receivable, net of allowance for doubtful accounts of $15 and $15, respectively | 4,966 | 1,466 |
Accounts receivable pledged as security to creditors | 0 | 1,843 |
Inventories, net | 21,717 | 16,893 |
Advances to suppliers, net of allowance of $172 and $175, respectively | 40,439 | 32,165 |
Taxes receivable | 116 | ' |
Deferred tax assets | 3 | 3 |
Other receivable | 47 | 342 |
Total current assets | 68,893 | 52,715 |
NON-CURRENT ASSETS | ' | ' |
Property and equipment, net | 4,584 | 374 |
Goodwill | 2,698 | ' |
Total non-current assets | 7,282 | 374 |
TOTAL ASSETS | 76,175 | 53,089 |
CURRENT LIABILITIES | ' | ' |
Accounts payable and accrued liabilities | 1,117 | 538 |
Interest payable | 1,048 | 382 |
Advances from customers | 1,383 | 1,106 |
Taxes payable | 4,782 | 3,491 |
Lines of credit payable | 45,682 | 46,968 |
Notes payable | 1,330 | ' |
Capital lease obligations | 638 | ' |
Loans payable to related parties | 500 | ' |
Total current liabilities | 56,480 | 52,485 |
Commitments and contingencies (Note 4) | ' | ' |
STOCKHOLDERS' EQUITY | ' | ' |
Preferred stock; $0.001 par value; 5,000,000 shares authorized; none issued and outstanding | ' | ' |
Common stock; par value of $0.001; 100,000,000 shares authorized; 33,333,334 and 23,311,667 shares issued and outstanding at September 30, 2013 and March 31, 2013, respectively | 33 | 23 |
Additional paid-in capital | 14,081 | 6,375 |
Retained earnings | 5,403 | 4,801 |
Contributions receivable | ' | -10,705 |
Accumulated other comprehensive income | 178 | 110 |
Total stockholders' equity | 19,695 | 604 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $76,175 | $53,089 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets Parenthetical (USD $) | Sep. 30, 2013 | Mar. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Consolidated Balance Sheets Parenthetical | ' | ' |
Allowance for doubtful accounts, accounts receivable | $15 | $15 |
Allowance for doubtful accounts, advance to suppliers | $172 | $175 |
Preferred stock par value | $0.00 | $0.00 |
Preferred stock shares authorized | 5,000,000 | 5,000,000 |
Preferred stock shares outstanding | ' | ' |
Common stock par value | $0.00 | $0.00 |
Common stock shares authorized | 100,000,000 | 100,000,000 |
Common stock shares issued | 33,333,334 | 23,311,667 |
Common stock shares outstanding | 33,333,334 | 23,311,667 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations and Comprehensive Income (Loss) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
REVENUES: | ' | ' | ' | ' |
Revenues, net | $22,993 | $15,577 | $40,539 | $37,254 |
Costs and operating expenses | ' | ' | ' | ' |
Crude oil and product costs | 17,872 | 14,030 | 32,861 | 31,492 |
Selling, general and administrative expenses | 1,022 | 409 | 1,551 | 636 |
Related party rent expense | 1,122 | 1,147 | 2,258 | 2,307 |
Total operating expenses | 20,016 | 15,586 | 36,670 | 34,435 |
Total operating income (loss) | 2,977 | -9 | 3,869 | 2,819 |
Other income, net | 19 | 123 | 159 | 310 |
Interest expense | -1,566 | -1,410 | -2,840 | -3,050 |
Income (loss) before provision for income taxes | 1,430 | -1,296 | 1,188 | 79 |
Provision for income taxes | -586 | 3 | -586 | -507 |
Net income (loss) | 844 | -1,293 | 602 | -428 |
Other comprehensive income - foreign currency translation adjustment, net of tax | -37 | -105 | 68 | -322 |
Total comprehensive income (loss), net of tax | $807 | ($1,398) | $670 | ($750) |
Basic and diluted earnings (loss) per share | $0.03 | ($0.06) | $0.02 | ($0.02) |
Basic and diluted weighted average common shares outstanding | 33,333,334 | 23,311,667 | 31,252,332 | 23,311,667 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
CASH FLOWS FROM OPERATING ACTIVITIES | ' | ' |
Net income (loss) | $602 | ($428) |
Depreciation | 164 | 38 |
Related party rent expense in excess of contractual amount | 2,232 | 2,261 |
Change in accounts receivable | -3,560 | -12,354 |
Change in inventories | -5,203 | 5,072 |
Change in advances to suppliers | -8,989 | -86,511 |
Change in taxes receivable | ' | 777 |
Change in other receivables | 348 | ' |
Change in accounts payable and accrued liabilities | 212 | -14,650 |
Change in advances to customers | -171 | 105,646 |
Change in taxes payable | 1,372 | 754 |
Net cash provided by (used in) operating activities | -12,993 | 605 |
CASH FLOWS FROM INVESTING ACTIVITIES | ' | ' |
Purchase of property and equipment | ' | -132 |
Cash received in acquisition | 4 | ' |
Net cash provided by (used in) investing activities | 4 | -132 |
CASH FLOWS FROM FINANCING ACTIVITIES | ' | ' |
Borrowings on lines of credit | 68,091 | 99,955 |
Payments on lines of credit | -66,430 | -98,674 |
Payments on long-term loans from related parties | ' | -7 |
Capital contributions | 12,961 | ' |
Net cash provided by financing activities | 14,622 | 1,274 |
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | -31 | -29 |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 1,602 | 1,718 |
CASH AND CASH EQUIVALENTS - Beginning of period | 3 | 532 |
CASH AND CASH EQUIVALENTS - End of period | 1,605 | 2,250 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | ' | ' |
Cash paid for interest | 2,175 | 3,050 |
Cash paid for income taxes | ' | ' |
NON-CASH OPERATING, INVESTING AND FINANCING ACTIVITIES | ' | ' |
Netting accounts receivable against line of credit under secured borrowing agreement | 1,826 | ' |
Acquisition of Geo Point in exchange for stock | $3,590 | ' |
Note_1_General_Information
Note 1 - General Information | 6 Months Ended | |
Sep. 30, 2013 | ||
Notes | ' | |
Note 1 - General Information | ' | |
NOTE 1 - GENERAL INFORMATION | ||
Background | ||
RTS OIL LLC (“RTS”), a Kazakhstan registered entity organized as a limited liability partnership, was founded in 2000 and is headquartered in Taraz, Kazakhstan. RTS is a distributor of refined oil products in the wholesale and retail markets in southern Kazakhstan. | ||
RTS operates 19 gasoline stations and seven (7) crude oil and fuel terminals (“fuel tank farms”). Of the seven (7) fuel tank farms, RTS owns one fuel tank farm and leases six (6) others with total storage capacity of more than 40,000 tons of crude oil and refined oil products. RTS leases the gasoline stations under operating lease agreements with related parties (see Note 4, Commitments and Contingencies, for additional information). RTS also owns a fleet of 28 trucks with capacities ranging from 20 to 34 tons of diesel/gasoline. Refined products are sold wholesale to other distributors and retail via RTS gasoline stations. RTS also supplies furnace fuel to refineries in the Kyrgyz republic for further processing. | ||
On May 8, 2013, Geo Point Technologies, Inc. (“Geo Point”) entered into a Share Exchange Agreement (the “Agreement”) with RTS to acquire all of the issued and outstanding owners’ equity of RTS. Pursuant to the terms of the Agreement, RTS became a wholly owned subsidiary of Geo Point, and the RTS shareholders assumed the controlling interest in Geo Point. RTS has accounted for the transaction as a reverse acquisition whereby the operations of RTS are the historical operations presented in the consolidated financial statements. | ||
On July 2, 2013, Geo Point Technologies, Inc. changed its name to RTS Oil Holdings, Inc. The consolidated financial statements presented herein include the historical operations of RTS and Geo Point from the date of the reverse acquisition of May 8, 2013 (all entities collectively referred to as the “Company”). | ||
Acquisition of Geo Point Technologies, Inc. | ||
The acquisition of Geo Point is accounted for as a reverse acquisition in accordance with ASC 805, Business Combinations as it was determined that RTS is the accounting acquirer because of the significant holdings and influence of the control group before and after the acquisition. In connection with the transaction, RTS owners held approximately 70% of Geo Point’s issued and outstanding common stock. In connection with this acquisition, the Company valued the common shares retained by the Geo Point shareholders at $3,590. The common shares were valued using the estimated fair market value of the portion of ownership interest of RTS that was transferred to Geo Point shareholders. The acquisition of Geo Point by RTS allowed RTS to expand its oil processing facilities. | ||
The assets and liabilities of Geo Point are reported at their fair value at the time of acquisition. Goodwill has been recorded based on the amount by which the purchase price exceeded the fair value of the net assets acquired. The allocation of the purchase price is subject to adjustment for a 12-month period that will end on May 8, 2014. The following is the preliminary allocation of the purchase price: | ||
Value of consideration issued: | $ 3,590 | |
Assets: | ||
Current assets | 183 | |
Property plant and equipment | 4,536 | |
4,719 | ||
Liabilities: | ||
Accounts payable and accrued liabilities | -1,549 | |
Current debt | -2,278 | |
-3,827 | ||
Goodwill | $ 2,698 |
Note_2_Summary_of_Significant_
Note 2 - Summary of Significant Accounting Policies | 6 Months Ended |
Sep. 30, 2013 | |
Notes | ' |
Note 2 - Summary of Significant Accounting Policies | ' |
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Interim Information | |
The consolidated interim financial statements included herein, presented in accordance with United States generally accepted accounting principles and stated in US dollars, have been prepared by the Company, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading. | |
These statements reflect all adjustments, consisting of normal recurring adjustments, which, in the opinion of management, are necessary for fair presentation of the information contained therein. It is suggested that these consolidated interim financial statements be read in conjunction with the consolidated financial statements and notes thereto for Geo Point for the year ended March 31, 2013 included in Geo Point’s Annual Report on Form 10-K and the RTS audited financial statements included on Form 8-K/A filed on September 18, 2013. The consolidated interim financial statements for the six months ended September 30, 2013, are not necessarily indicative of the results expected for the full year. | |
Consolidation | |
The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, RTS Oil, LLC, GSM Oil Holdings Ltd, GSM Oil, B.V., and Sinur Oil LLP, after elimination of all material inter-company accounts and transactions. The operations of Geo Point have been included as of May 1, 2013, which approximates the acquisition date of May 8, 2013. | |
Use of Estimates | |
The Company’s consolidated financial statements are prepared in accordance with GAAP. GAAP requires management to make judgments, estimates and assumptions that may affect the reported amounts of assets and liabilities as of the date of its financial statements as well as the reported amounts of revenues and expenses during the periods presented. These judgments, estimates and assumptions are used for, but not limited to: the fair market value of the consideration issued in connection with the acquisition of Geo Point, the fair market value of the assets and liabilities of Geo Point, useful lives of property and equipment, potential impairment of intangible assets, and the provision for income taxes including required valuation allowances. The Company bases its estimates on various factors and information which may include, but are not limited to, history and prior experience, experience of other enterprises in the same industry, and current economic conditions. Actual results may differ from these estimates, and these differences may be material. | |
Goodwill | |
The Company’s policy provides for annual evaluation of goodwill on the first day of the fourth fiscal quarter and whenever events and changes in circumstances suggest that the carrying amount may not be recoverable. Impairment of goodwill is tested at the reporting unit level by comparing the segments' net carrying value, including goodwill, to the fair value of the unit. The fair values of our reporting units are estimated using a combination of the income or discounted cash flows approach and the market approach, which uses comparable market data. If the carrying amount of the segment exceeds its fair value, goodwill is potentially impaired and a second test would be performed to measure the amount of impairment loss, if any. All goodwill is associated with the acquisition of Geo Point. At September 30, 2013, the Company determined there were no indicating factors for an impairment. | |
Foreign Currency | |
The Kazakh Tenge is the functional currency of the Company. The respective balance sheets have been translated into USD at the exchange rates prevailing at each balance sheet date. The respective statements of operations and comprehensive income (loss) have been translated into USD using the average exchange rates prevailing during the periods of each statement. The corresponding translation adjustments are part of accumulated other comprehensive income and are shown as part of shareholders’ equity. Transaction gains or losses related to balances denominated in a different currency than the functional currency are recognized in the statement of operations. Net foreign currency transaction gains and losses included in the Company’s statements of operations were negligible for the six months ended September 30, 2013 and 2012. | |
Comprehensive Income (Loss) | |
Total comprehensive income (loss) represents the net change in shareholders’ equity during a period from sources other than transactions with shareholders. Accumulated other comprehensive income is comprised solely of accumulated foreign currency translation adjustments. | |
Earnings (Loss) Per Common Share | |
Basic earnings (loss) per common share is computed by dividing net income (loss) available to common shareholders by the weighted-average number of common shares outstanding during the reporting period. Diluted earnings (loss) per common share is computed by dividing net income available to common shareholders by the combination of dilutive common share equivalents, and the weighted-average number of common shares outstanding during the reporting period. Dilutive common share equivalents include the dilutive effect of in-the-money share equivalents, which are calculated based on the average share price for each period using the treasury stock method. Under the treasury stock method, the exercise price of an award, if any, the amount of compensation cost, if any, for future service that the Company has not yet recognized, and the estimated tax benefits that would be recorded in paid-in capital, if any, when an award is settled are assumed to be used to repurchase shares in the current period. | |
As of September 30, 2013, the Company did not have any dilutive securities other than warrants to purchase 83,334 shares of common stock at an exercise price of $5.25. The warrants were excluded from the dilutive share computation as the exercise price was in excess of the Company's average share price for the six months ended September 30, 2013. The warrants are fully vested and expire in May 2015. | |
Recent Accounting Pronouncements | |
From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (“FASB”) that are adopted by the Company as of the specified date. If not discussed, management believes that the impact of recently issued standards, which are not yet effective, will not have a material impact on the Company’s financial statements upon adoption. |
Note_3_Notes_Payable_Lines_of_
Note 3 - Notes Payable, Lines of Credit & Capital Lease | 6 Months Ended |
Sep. 30, 2013 | |
Notes | ' |
Note 3 - Notes Payable, Lines of Credit & Capital Lease | ' |
NOTE 3 - NOTES PAYABLE, LINES OF CREDIT & CAPITAL LEASE | |
Lines of Credit with Banks | |
As of September 30, 2013, the Company had entered into four revolving lines of credit with four banks. The related lines of credit bear interest at annual rates from 13% to 19%. Advances on the line of credit are due one year or sooner from the date of the advance and are collateralized by certain properties and equipments, inventories, sales contracts and personal guarantees of the owners. The outstanding balance due under the lines of credit was $45,682 and $46,968 as of September 30, 2013 and March 31, 2013, respectively. The amounts have been classified as short-term lines of credit payable in the accompanying balance sheets. As of September 30, 2013 and March 31, 2013, the Company has withdrawn up to the maximum limits on the lines. | |
Factoring Agreement | |
During the year ended March 31, 2013, the Company entered into a factoring agreement for financing purposes with the transfer of certain accounts receivable with a recourse provision. The agreement qualifies as a secured borrowing with collateral under the guidelines of ASC 860, Transfers and Servicing. The loans obtained under the agreement bear interest at annual rate of 18%. The assets pledged under the agreement are presented separately on the balance sheet as Accounts receivable pledged as security to creditors. As of September 30, 2013, the assets pledged and the related liabilities were $0 and $0, respectively. As of March 31, 2013, the assets pledged and the related liabilities were $1,843 and $2,026, respectively. | |
Capital Vario Notes Payable | |
In connection with the acquisition of Geo Point, the Company assumed third party notes payable of $500 and $403 and accrued interest on such notes. The notes accrue interest at 30% per annum and were in default at the time of acquisition. At September 30, 2013, the Company has accrued interest of approximately $673 included in interest payable. The notes are denominated in United States dollars. Translation gains and losses are immaterial to the consolidated financial statements and have not been recognized. | |
Capital Vario Revolving Line of Credit | |
In connection with the acquisition of Geo Point, the Company assumed a third party line of credit with the note payable holder described above. Under the terms of the line of credit, the Company was allowed to initially borrow up to a maximum of $50 accruing interest daily at a rate of 24% per annum and was due six months from issuance. As of September 30, 2013, the balance of the line of credit was $427, with no amounts available. As of September 30, 2013, the line of credit is in default, however, no demands for payment have been made by the holder. Accrued interest as of September 30, 2013 and 2012 was $41. | |
Capital Lease | |
In connection with the acquisition of Geo Point, the Company assumed a capital lease payable to a bank. The lease was used to purchase the primary refining equipment for Geo Point's refining facility. At the date of acquisition, the lease incurred interest at 19% per annum and was in default due to non-payment. Thus, the Company has recorded the entire liability as current on the accompanying consolidated balance sheet at September 30, 2013. The Company is currently attempting to renegotiate the lease and/or obtain an extension. There are no guarantees that an acceptable agreement can be reached. At September 30, 2013, the balance due on the capital lease including accrued interest and penalties was $638. | |
Note_4_Commitments_and_Conting
Note 4 - Commitments and Contingencies | 6 Months Ended |
Sep. 30, 2013 | |
Notes | ' |
Note 4 - Commitments and Contingencies | ' |
NOTE 4 - COMMITMENTS AND CONTINGENCIES | |
Related Party Operating Leases | |
At September 30, 2013 and 2012, the Company leased 6 of its fuel tank farms and 19 of its petrol stations under operating lease agreements from related parties (immediate family members of an owner). The agreements are cancelable upon initiation of either party within three months and the rental payments are set at nominal amounts. The Company recorded the fair value of rental expense of $2,258 and $2,307 for the six months ended September 30, 2013 and 2012, respectively. | |
Taxation | |
Different Kazakhstani legislation acts and norms are often unclear, contradictory and subject to varying interpretation by different tax authorities and the Ministry of Finance of the Republic of Kazakhstan. Frequently, disagreements in opinions occur among local, regional and national tax authorities. The current regime of imposing fines and penalties for identified violations of Kazakhstani legislation, statutes and standards is sufficiently severe. Sanctions include confiscation of questionable amounts (for violation of currency control), as well as fines of 50% of accrued tax. The penalty rate is 22.5%. | |
The Company considers that it has accrued or paid all applicable taxes. The Company’s policy assumes accrual of provisions in the period when probability of losses can be reliably assessed. | |
Environmental Issues | |
The Company is subject to various environmental laws and regulations of the Republic of Kazakhstan. Management believes that the Company complies with all government requirements regarding environment protection. However, there is no assurance that contingent liabilities will not arise. | |
Litigation | |
In the normal course of the Company’s business, legal proceedings may be brought against the Company arising out of current and past operations, including matters related to commercial disputes, product liability, premises liability and personal injury claims, allegations of compliance with law violations, consumer claims, general environmental claims, allegations of exposures of third parties to toxic substances and other legal claims. There were no contingent liabilities at September 30, 2013 and March 31, 2013. |
Note_5_Stockholders_Equity
Note 5 - Stockholders' Equity | 6 Months Ended |
Sep. 30, 2013 | |
Notes | ' |
Note 5 - Stockholders' Equity | ' |
NOTE 5 - STOCKHOLDERS' EQUITY | |
Reverse Stock Split | |
Effective May 24, 2013, the Company effected a one for three reverse stock split. All share and per share amounts have been revised to reflect the reverse stock split on a retroactive basis. | |
Contributions Receivable | |
During the year ended March 31, 2013, the Company declared and paid a cash dividend in the total amount of $10,705. It later rescinded the decision in accordance with the terms of the original dividend declaration and the total amount of the dividend was to be repaid back to the Company. During the six months ended September 30, 2013, the total amount of the dividend was repaid back to the Company in full. | |
During the six months ended September 30, 2013, the owners contributed an additional $2,320 prior to May 8, 2013. |
Note_6_Related_Party_Transacti
Note 6 - Related Party Transactions | 6 Months Ended |
Sep. 30, 2013 | |
Notes | ' |
Note 6 - Related Party Transactions | ' |
NOTE 6 - RELATED PARTY TRANSACTIONS | |
Operating Leases | |
The Company leases six (6) of its fuel tank farms and 19 of its petrol stations under operating lease agreements. See Note 4 for additional information. | |
Revolving Loans Payable to Related Parties | |
In connection with the acquisition of Geo Point, the Company assumed a revolving debt agreement with a direct relative of Geo Point’s principal shareholder. Under the terms of the agreement, the Company may borrow up to 27 million KZT, which converts to approximately $173 at September 30, 2013. The note does not incur interest and was due January 31, 2012, which automatically extends monthly until called by the holder. As of September 30, 2013, amounts due under this loan were $54 and $124 was available. | |
In connection with the acquisition of Geo Point, the Company assumed a revolving debt agreement with a direct relative of Geo Point’s shareholder. Under the terms of the agreement, the Company may borrow up to 30 million KZT, which converts to approximately $193 at September 30, 2013. The note does not accrue interest and was due February 2, 2013. As of September 30, 2013, amounts due under this loan were $198. | |
Assumption of Capital Lease | |
See Note 3 regarding the assumption of a capital lease from an entity owned by Geo Point’s shareholder. In connection with this assumption, Geo Point agreed to reimburse the entity payments that it had made on the capital lease. The amounts do not accrue interest and are due on demand. As of September 30, 2013, amounts due to this entity were approximately $251. | |
Note_2_Summary_of_Significant_1
Note 2 - Summary of Significant Accounting Policies: Consolidation (Policies) | 6 Months Ended |
Sep. 30, 2013 | |
Policies | ' |
Consolidation | ' |
Consolidation | |
The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, RTS Oil, LLC, GSM Oil Holdings Ltd, GSM Oil, B.V., and Sinur Oil LLP, after elimination of all material inter-company accounts and transactions. The operations of Geo Point have been included as of May 1, 2013, which approximates the acquisition date of May 8, 2013. |
Note_2_Summary_of_Significant_2
Note 2 - Summary of Significant Accounting Policies: Use of Estimates (Policies) | 6 Months Ended |
Sep. 30, 2013 | |
Policies | ' |
Use of Estimates | ' |
Use of Estimates | |
The Company’s consolidated financial statements are prepared in accordance with GAAP. GAAP requires management to make judgments, estimates and assumptions that may affect the reported amounts of assets and liabilities as of the date of its financial statements as well as the reported amounts of revenues and expenses during the periods presented. These judgments, estimates and assumptions are used for, but not limited to: the fair market value of the consideration issued in connection with the acquisition of Geo Point, the fair market value of the assets and liabilities of Geo Point, useful lives of property and equipment, potential impairment of intangible assets, and the provision for income taxes including required valuation allowances. The Company bases its estimates on various factors and information which may include, but are not limited to, history and prior experience, experience of other enterprises in the same industry, and current economic conditions. Actual results may differ from these estimates, and these differences may be material. |
Note_2_Summary_of_Significant_3
Note 2 - Summary of Significant Accounting Policies: Goodwill (Policies) | 6 Months Ended |
Sep. 30, 2013 | |
Policies | ' |
Goodwill | ' |
Goodwill | |
The Company’s policy provides for annual evaluation of goodwill on the first day of the fourth fiscal quarter and whenever events and changes in circumstances suggest that the carrying amount may not be recoverable. Impairment of goodwill is tested at the reporting unit level by comparing the segments' net carrying value, including goodwill, to the fair value of the unit. The fair values of our reporting units are estimated using a combination of the income or discounted cash flows approach and the market approach, which uses comparable market data. If the carrying amount of the segment exceeds its fair value, goodwill is potentially impaired and a second test would be performed to measure the amount of impairment loss, if any. All goodwill is associated with the acquisition of Geo Point. At September 30, 2013, the Company determined there were no indicating factors for an impairment. |
Note_2_Summary_of_Significant_4
Note 2 - Summary of Significant Accounting Policies: Foreign Currency (Policies) | 6 Months Ended |
Sep. 30, 2013 | |
Policies | ' |
Foreign Currency | ' |
Foreign Currency | |
The Kazakh Tenge is the functional currency of the Company. The respective balance sheets have been translated into USD at the exchange rates prevailing at each balance sheet date. The respective statements of operations and comprehensive income (loss) have been translated into USD using the average exchange rates prevailing during the periods of each statement. The corresponding translation adjustments are part of accumulated other comprehensive income and are shown as part of shareholders’ equity. Transaction gains or losses related to balances denominated in a different currency than the functional currency are recognized in the statement of operations. Net foreign currency transaction gains and losses included in the Company’s statements of operations were negligible for the six months ended September 30, 2013 and 2012. |
Note_2_Summary_of_Significant_5
Note 2 - Summary of Significant Accounting Policies: Comprehensive Income (Policies) | 6 Months Ended |
Sep. 30, 2013 | |
Policies | ' |
Comprehensive Income | ' |
Comprehensive Income (Loss) | |
Total comprehensive income (loss) represents the net change in shareholders’ equity during a period from sources other than transactions with shareholders. Accumulated other comprehensive income is comprised solely of accumulated foreign currency translation adjustments. |
Note_2_Summary_of_Significant_6
Note 2 - Summary of Significant Accounting Policies: Earnings Per Common Share (Policies) | 6 Months Ended |
Sep. 30, 2013 | |
Policies | ' |
Earnings Per Common Share | ' |
Earnings (Loss) Per Common Share | |
Basic earnings (loss) per common share is computed by dividing net income (loss) available to common shareholders by the weighted-average number of common shares outstanding during the reporting period. Diluted earnings (loss) per common share is computed by dividing net income available to common shareholders by the combination of dilutive common share equivalents, and the weighted-average number of common shares outstanding during the reporting period. Dilutive common share equivalents include the dilutive effect of in-the-money share equivalents, which are calculated based on the average share price for each period using the treasury stock method. Under the treasury stock method, the exercise price of an award, if any, the amount of compensation cost, if any, for future service that the Company has not yet recognized, and the estimated tax benefits that would be recorded in paid-in capital, if any, when an award is settled are assumed to be used to repurchase shares in the current period. | |
As of September 30, 2013, the Company did not have any dilutive securities other than warrants to purchase 83,334 shares of common stock at an exercise price of $5.25. The warrants were excluded from the dilutive share computation as the exercise price was in excess of the Company's average share price for the six months ended September 30, 2013. The warrants are fully vested and expire in May 2015. |
Note_2_Summary_of_Significant_7
Note 2 - Summary of Significant Accounting Policies: Recent Accounting Pronouncements (Policies) | 6 Months Ended |
Sep. 30, 2013 | |
Policies | ' |
Recent Accounting Pronouncements | ' |
Recent Accounting Pronouncements | |
From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (“FASB”) that are adopted by the Company as of the specified date. If not discussed, management believes that the impact of recently issued standards, which are not yet effective, will not have a material impact on the Company’s financial statements upon adoption. |
Note_1_General_Information_Sch
Note 1 - General Information: Schedule Of Assets And Liabilities At Acquisition (Tables) | 6 Months Ended | |
Sep. 30, 2013 | ||
Tables/Schedules | ' | |
Schedule Of Assets And Liabilities At Acquisition | ' | |
Value of consideration issued: | $ 3,590 | |
Assets: | ||
Current assets | 183 | |
Property plant and equipment | 4,536 | |
4,719 | ||
Liabilities: | ||
Accounts payable and accrued liabilities | -1,549 | |
Current debt | -2,278 | |
-3,827 | ||
Goodwill | $ 2,698 |
Note_1_General_Information_Det
Note 1 - General Information (Details) (USD $) | 6 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 |
Details | ' |
Geo Point common shares value | $3,590 |
Note_1_General_Information_Sch1
Note 1 - General Information: Schedule Of Assets And Liabilities At Acquisition (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Mar. 31, 2013 | 8-May-13 |
Geo Point Acquistion | |||
Value of consideration issued | ' | ' | $3,590 |
Total Current Assets | 68,893 | 52,715 | 183 |
Property and equipment, net | 4,584 | 374 | 4,536 |
TOTAL ASSETS | 76,175 | 53,089 | 4,719 |
Accounts payable and accrued liabilities | ' | ' | -1,549 |
Debt, Current | ' | ' | -2,278 |
Total Current Liabilities | 56,480 | 52,485 | -3,827 |
Goodwill, Acquired During Period | $2,698 | ' | ' |
Note_3_Notes_Payable_Lines_of_1
Note 3 - Notes Payable, Lines of Credit & Capital Lease: Lines of Credit with Banks (Details) (USD $) | Sep. 30, 2013 | Mar. 31, 2013 |
In Thousands, unless otherwise specified | ||
Details | ' | ' |
Long-term Line of Credit | $45,682 | $46,968 |
Note_3_Notes_Payable_Lines_of_2
Note 3 - Notes Payable, Lines of Credit & Capital Lease: Factoring Agreement (Details) (USD $) | Sep. 30, 2013 | Mar. 31, 2013 |
In Thousands, unless otherwise specified | ||
Details | ' | ' |
Accounts receivable pledged as security to creditors | $0 | $1,843 |
Related liabilities for assets pledged | $0 | $2,026 |
Note_3_Notes_Payable_Lines_of_3
Note 3 - Notes Payable, Lines of Credit & Capital Lease: Capital Vario Notes Payable (Details) (USD $) | Sep. 30, 2013 |
In Thousands, unless otherwise specified | |
Interest payable | $673 |
Note Payable 1 | ' |
Third party notes payable assumed | 500 |
Note Payable 2 | ' |
Third party notes payable assumed | $403 |
Note_3_Notes_Payable_Lines_of_4
Note 3 - Notes Payable, Lines of Credit & Capital Lease: Capital Vario Revolving Line of Credit (Details) (USD $) | Sep. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2012 |
In Thousands, unless otherwise specified | Capital Vario | Capital Vario | ||
Line of Credit Facility Maximum Borrowing Capacity | ' | ' | $50 | ' |
Line of Credit Facility Interest Rate at Period End | ' | ' | 24.00% | ' |
Long-term Line of Credit | 45,682 | 46,968 | 427 | ' |
Accrued interest | ' | ' | ' | $41 |
Note_3_Notes_Payable_Lines_of_5
Note 3 - Notes Payable, Lines of Credit & Capital Lease: Capital Lease (Details) (USD $) | Sep. 30, 2013 |
In Thousands, unless otherwise specified | |
Details | ' |
Capital lease obligations, current portion | $638 |
Note_4_Commitments_and_Conting1
Note 4 - Commitments and Contingencies (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Details | ' | ' | ' | ' |
Related party rent expense | $1,122 | $1,147 | $2,258 | $2,307 |
Note_5_Stockholders_Equity_Det
Note 5 - Stockholders' Equity (Details) (USD $) | 6 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Mar. 31, 2013 |
Details | ' | ' |
Dividends, Cash | ' | $10,705 |
Proceeds from Contributed Capital | $2,320 | ' |
Note_6_Related_Party_Transacti1
Note 6 - Related Party Transactions: Revolving Loans Payable to Related Parties (Details) (USD $) | Sep. 30, 2013 |
In Thousands, unless otherwise specified | |
Revolving loan payable related party | $54 |
Revolving loan available balance | 124 |
Note Receivable | ' |
Revolving loan payable related party | $198 |
Note_6_Related_Party_Transacti2
Note 6 - Related Party Transactions: Assumption of Capital Lease (Details) (USD $) | Sep. 30, 2013 |
In Thousands, unless otherwise specified | |
Details | ' |
Capital lease payable | $251 |