Business Context and Reporting Period
This Form 10-Q covers the quarterly period ended March 31, 2011, for Blue Moose Media, Inc. (Note: The request metadata listed "LIQTECH INTERNATIONAL INC," but the filing text identifies the registrant as Blue Moose Media, Inc.). The company is classified as a development stage company and a shell company. It ceased its original media production operations in 2007 and is currently seeking a reverse acquisition or merger with an operating entity to become a public reporting company. The financial statements are unaudited.
Key Financial Metrics
| Metric | Q1 2011 | Q1 2010 | Inception to Q1 2011 |
|---|---|---|---|
| Revenue | $0 | $0 | $24,651 |
| Net Loss | $(6,002) | $(7,765) | $(141,151) |
| Cash Balance (End of Period) | $251 | $4,859 | $251 |
| Total Assets | $288 | $5,498 (Dec 31, 2010) | N/A |
| Total Liabilities | $17,439 | $16,647 (Dec 31, 2010) | N/A |
| Stockholders' Deficit | $(17,151) | $(11,149) (Dec 31, 2010) | N/A |
| Weighted Avg Shares Outstanding | 41,371,750 | 21,371,750 | N/A |
Debt and Liquidity: The company holds minimal cash ($251) against total liabilities of $17,439. Liabilities include $7,995 in accounts payable, $8,000 in notes payable to unrelated third parties, and $1,325 in advances from a related party. The company has no line of credit.
Material Changes vs. Prior Period
- Operating Loss: The net loss decreased slightly to $6,002 in Q1 2011 compared to $7,765 in Q1 2010, primarily due to a reduction in general and administrative expenses ($5,907 vs. $7,765).
- Interest Expense: Interest expense of $95 was recorded in Q1 2011, compared to $0 in Q1 2010, resulting from new debt financing.
- Cash Position: Cash decreased significantly from $5,425 at the end of 2010 to $251 at March 31, 2011, driven by operating cash outflows of $8,174.
- Debt Increase: Total notes payable increased from $5,000 to $8,000 following a new $3,000 promissory note executed in March 2011.
Outlook, Risks, and Management Commentary
Going Concern: The filing explicitly states that the company's limited operating history, lack of revenue, and accumulated deficit raise substantial doubt about its ability to continue as a going concern. Management plans to raise necessary funds through loans or additional sales of common stock, with no assurance of success.
Plan of Operations: The company has no specific business plan other than seeking a reverse acquisition or merger. It estimates ongoing administrative expenses (accounting, legal, filing fees) to be approximately $20,000 per year. Management anticipates relying on advances from the president to meet needs for the next 12 months.
Risks: Significant risks include the inability to locate a suitable acquisition target, failure to raise additional capital, and potential dilution of existing shareholders in any future merger. The company has no employees and relies solely on officers and directors.
Investor Verification Checklist
- Capital Adequacy: Verify the company's ability to fund its estimated $20,000 annual operating expenses given a cash balance of only $251.
- Debt Obligations: Confirm the terms and repayment schedules for the $8,000 in third-party notes and $1,325 in related-party advances.
- Acquisition Status: Investigate if any substantive negotiations for a reverse acquisition or merger have commenced, as none were disclosed as of the filing date.
- Related Party Transactions: Review the nature of the $1,325 advance from an officer/shareholder and any potential conflicts of interest.
- Shell Company Status: Acknowledge the high risk associated with investing in a shell company with no active operations or revenue stream.