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Quotes & Info
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| NMLE.OB > SEC Filings for NMLE.OB > Form 10-Q on 10-Aug-2009 | All Recent SEC Filings |
10-Aug-2009
Quarterly Report
The following information should be read in conjunction with the financial statements and notes thereto appearing elsewhere in this Form 10-Q.
Plan of Operation
Since inception in November 2006, we have engaged in the development of our TradeWarrior software in anticipation of introducing it to the investment advisory market. Our plan of operation for the next 3 to 6 months is to complete commercialization of the TradeWarrior Small Business software. In June 2009, we successfully launched the beta version of TradeWarrior Express. TradeWarrior Express is the free demo version of TradeWarrior that will be installed with every FinFolio license that is sold. We have hired Ryan Sullivan as our CTO to rewrite the program in a more robust programming language and work directly with Mr. Deru to map out and optimize the logic flows of the program to make TradeWarrior a commercially viable product. Management anticipates this will take between three and six months to complete the first commercially available version of TradeWarrior. During our development period, a beta group of 10 -15 RIA users that we have previously identified will be using the program and providing industry feedback. This is essential to gain perspective and insight into the industry needs in a real time feedback loop in order to adjust the program to real life needs of end users.
After a successful beta iteration period, we will prepare to launch the TradeWarrior product commercially. The goal of management is to launch no later than fourth quarter of 2009. We may seek additional funding in the next six months to further accelerate the development and launch of TradeWarrior into the marketplace.
Beyond development of TradeWarrior, we do not plan to use offering proceeds for the potential CRM product. We anticipate developing the CRM product if and when sufficient cash flows are realized from sales of the original TradeWarrior product.
We do not expect to make major capital expenditure for completing development and marketing TradeWarrior. We do anticipate an increase in employees if and when TradeWarrior is completed and marketed successfully. In preparing to commence marketing TradeWarrior, management will assess the potential demand for up to two customer service personnel to assist in responding to new customers' questions, orientation and installation of programs. In addition, we will assess the potential demand to hire additional programmers to speed development of functionality within TradeWarrior. Management believes we could be generating revenue within the first quarter or two after we commercially release TradeWarrior.
Results of Operations and Liquidity and Capital Resources
We have not realized revenues since inception. For the three-month period ended June 30, 2009 ("second quarter"), we realized a net loss of $57,093, compared to a net loss of $61,767 for the three-month period ended June 30, 2008. The decrease in net loss for the second quarter of 2009 is attributed to the 8% decrease in general and administrative expenses due to reduced operating costs from launching the business operations in 2008.
For the six months ended June 30, 2009, our net loss was $115,637, a 46% increase from the net loss of $79,141 for the six months ended June 30, 2008. The increased net loss for the 2009 period is primarily attributed to the 43% increase in general and administrative expenses from $79,141 in 2008 to $113, 220 in 2009 due to increased operating costs associated with launching business operations and hiring our full time CEO and CTO at the end of 2008. Also, the net loss for the first six months of 2009 included $4,766 in research and development expenses and $2,349 in interest income.
At June 30, 2009, our working capital decreased to $281,274 compared to $395,766 at December 31, 2008, primarily due to a $121,808 decrease in cash. We anticipate meeting our working capital needs during the remainder of 2009 with proceeds from our initial public offering. We have no other agreements or arrangements for additional funding and there can be no assurance any such funding will be available to us, or if available, such funding will be on acceptable or favorable terms to us.
Going Concern Consideration
Because we are a development stage company with no current revenues, we are relying on the proceeds of our initial public offering to launch our software product. If we do not have adequate capital to eventually develop a consistent source of revenues, we may have to curtail or cease operations. Additionally, even if we complete development of the TradeWarrior and generate revenues, there can be no assurances that revenues will be sufficient to enable us to generate profits and cash flows from operations. In that event, if we are unable to secure additional funding there is substantial doubt about our ability to continue as a going concern.
Inflation
In the opinion of management, inflation has not and will not have a material effect on our operations in the immediate future. Management will continue to monitor inflation and evaluate the possible future effects of inflation on our business and operations.
Off-balance Sheet Arrangements
We have no off-balance sheet arrangements.
Forward-Looking and Cautionary Statements
This report contains forward-looking statements relating to future events or our future financial performance. In some cases, you can identify forward-looking statements by terminology such as "may," "will" "should," "expect," "intend," "plan," anticipate," "believe," "estimate," "predict," "potential," "continue," or similar terms, variations of such terms or the negative of such terms. These statements are only predictions and involve known and unknown risks, uncertainties and other factors included in our periodic reports with the SEC. Although forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect our current judgment, actual results could differ materially from those anticipated in such statements. Except as required by applicable law, including the securities laws of the United States, we do not intend to update any of the forward-looking statements to conform these statements to actual results.
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