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| VULT.OB > SEC Filings for VULT.OB > Form 10-Q on 15-Jul-2009 | All Recent SEC Filings |
15-Jul-2009
Quarterly Report
The following information specifies certain forward-looking statements of management of the company. Forward-looking statements are statements that estimate the happening of future events and are not based on historical fact. Forward-looking statements may be identified by the use of forward-looking terminology, such as "may", "shall", "could", "expect", "estimate", "anticipate", "predict", "probable", "possible", "should", "continue", or similar terms, variations of those terms or the negative of those terms. The forward-looking statements specified in the following information have been compiled by our management on the basis of assumptions made by management and considered by management to be reasonable. Our future operating results, however, are impossible to predict and no representation, guaranty, or warranty is to be inferred from those forward-looking statements.
The assumptions used for purposes of the forward-looking statements specified in the following information represent estimates of future events and are subject to uncertainty as to possible changes in economic, legislative, industry, and other circumstances. As a result, the identification and interpretation of data and other information and their use in developing and selecting assumptions from and among reasonable alternatives require the exercise of judgment. To the extent that the assumed events do not occur, the outcome may vary substantially from anticipated or projected results, and, accordingly, no opinion is expressed on the achievability of those forward-looking statements. We cannot guaranty that any of the assumptions relating to the forward-looking statements specified in the following information are accurate, and we assume no obligation to update any such forward-looking statements.
Critical Accounting Policies and Estimates
Our Management's Discussion and Analysis of Financial Condition and Results of Operations section discusses our financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America. The preparation of these financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. On an on-going basis, management evaluates its estimates and judgments, including those related to revenue recognition, accrued expenses, financing operations, and contingencies and litigation. Management bases its estimates and judgments on historical experience and on various other factors that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. The most significant accounting estimates inherent in the preparation of our financial statements include estimates as to the appropriate carrying value of certain assets and liabilities which are not readily apparent from other sources.
These accounting policies are described at relevant sections in this discussion and analysis and in the notes to the financial statements included in our Quarterly Report on Form 10-Q for the period ended May 31, 2009.
Results of Operations
For the three months ended May 31, 2009, as compared to the three months ended May 31, 2008.
Revenues. We have not earned any revenues to date.
Operating Expenses and Net Loss. Our net loss from operations of $340,381 for the three month period ended May 31, 2009, was solely comprised of general and administrative expenses. By comparison, our net loss of $36,068 for the three month period ended May 31, 2008, was comprised solely of general and administrative expenses. We anticipate our accounting and legal expenses will also increase as a result of our ongoing reporting requirements under the Securities Exchange Act of 1934 and the increased merger and acquisitions activity.
For the nine months ended May 31, 2009, as compared to the nine months ended May 31, 2008.
Revenues. We have not earned any revenues to date.
Operating Expenses and Net Loss. We are reporting a net loss of $145,936 for the nine-months ended May 31, 2009 versus a net loss of $284,163 for the nine-month period ending May 31, 2008. The general and administrative expenses for the comparative nine-month periods is $545,286 for the period ending May 31, 2009 and $284,163 for the period ending May 31, 2008. Debt forgiveness income of $399,350 was realized during the period ending May 31, 2009 and resulted in the net loss of $145,936 for the period.
Liquidity and Financial Condition
During the nine-month period ending May 31, 2009 the Company's cash position increased by $4,897. Cash used in operating activities totaled $233,260; cash flows from financing activities were $238,157, including $224,097 from related party loans.
During the nine-month period ending May 31, 2008 the Company's cash position decreased by $5,607. Cash used in operating activities totaled $159,920; and cash provided by financing activities for the period was $154,313: $75,298 from shareholder loans and 79,015 from finance contracts.
As of May 31, 2009, we had cash of $4,897 on hand. Since our inception, we have used our common stock and loans to raise money for our operations and for our property acquisitions. We have not generated any revenues to date and are dependent upon obtaining financing to pursue our plan of operation.
Over the last three months, we have continued to experienced difficulties in raising capital. We believe our inability to raise significant additional capital through equity or debt financings is due to various factors, including, but not limited to, a tightening in the equity and credit markets. As a result, we have funded our operations through loans from our current President and a company related to our current President. As of May 31, 2009, our current President has loaned us a total of $91,576. These loans have a term of one year, bear interest of 10% and are unsecured. During the nine months ended May 31, 2009, we also borrowed funds amounting to $132,520 from a company related to our current President.
We anticipate spending approximately $250,000 over the next twelve months in pursuing our plan of operation. We have a working capital deficit of $363,818 and we have not earned any revenues to date and do not anticipate earning revenues until we have completed commercial development of our anticipated products. Accordingly, we will require substantial additional financing in order to fund our plan of operation. We anticipate that any additional financing will likely be in the form of equity financing as substantial debt financing will likely not be as available at this stage of our business.
During 2008, we incurred significant professional costs associated with the audit of our financial statements and our reporting requirements. We expect that the legal and accounting costs of being a public company will continue to impact our liquidity and we may need to obtain funds to pay those expenses. Other than the anticipated increases in legal and accounting costs due to the reporting requirements of being a public company, we are not aware of any other known trends, events or uncertainties, which may affect our future liquidity.
Plan of Operations
Vault Technology, Inc. is a full service audio visual integration firm that serves the education, government and commercial marketplace. We provide multimedia consulting, complete classroom, boardroom, and conference room design and installation of audiovisual products and sound system design and installation. In addition to its complex product offering, Vault provides training, service and on-going customer support. As part of our new business focus, we have also begun exploring other opportunities in the products and services arena related to audiovisual systems integration, home theater systems and digital media. We have also deployed additional resources into the acquisition of operating entities that deliver products and services related to audiovisual systems integration, home theater systems and digital media. We have not earned any revenues to date.
As at May 31, 2009, we had cash of $4,897 on hand. As such, we currently do not have sufficient financial resources to meet the anticipated costs of pursuing our new business focus, or the anticipated administrative costs of operating our business for the next twelve months. Our forecast for the period for which our financial resources will be adequate to support our operations involves risks and uncertainties and actual results could fail as a result of a number of factors. We intend to pursue capital through public or private financing and other sources, such as our officers, director and principal shareholders. We cannot guarantee that additional funding will be available on favorable terms, if at all. If adequate funds are not available, we hope that our officers, directors and principal shareholders will contribute funds to pay for our expenses to achieve our objectives over the next twelve months. However, we cannot guarantee that our officers, directors and principal shareholders will continue to contribute funds to pay for our expenses.
On July 10, 2009 we signed a renewed non-binding Memorandum of Understanding to enter into an exclusive licensing and distribution agreement with EcoBlu Products, Inc. to distribute their Ecoblu line of green building products in the Caribbean, Central and South American markets.
Upon closing of an agreement to acquire the license we would become the exclusive distributor of proprietary wood products coated with a non-toxic eco-friendly chemistry that protects against mold, rot-decay, termites and value added fire for the Caribbean, Central and South American markets. The EcoBlu products can be used for all of the wood framing components used in a covered structure: the roof system, wall system and floor system. These covered structure components include structural lumber, sheathing, truss products, beams and trims, among others. In anticipation of acquiring the license we are preparing to change the Company's name to "Modern Renewable Technologies, Inc." and complete a one (1) share for every seventy (70) share stock reverse split of the Company's issued and outstanding shares. The company anticipates an effective date of July 31, 2009, or as soon thereafter as practicable in accordance with applicable law, including the Nevada General Corporation. We believe these changes will better reflect our new business opportunities with the EcoBlu products and reorganize our capital structure to improve our ability to raise additional funding to pursue the abovementioned opportunity.
Off-Balance Sheet Arrangements
We have no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to our stockholders.
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