Business Context and Reporting Period
Company: BlueStar Financial Group, Inc. (Note: Input metadata listed "Quest Resource Holding Corp," but the filing text identifies the issuer as BlueStar Financial Group, Inc.)
Reporting Period: Quarter ended March 31, 2009 (Form 10-Q filed May 14, 2009)
Status: Development stage company and shell company incorporated in Nevada.
Operations: The company has not generated any revenue since its inception on July 12, 2002. It intends to operate in the equipment leasing industry but has not yet commenced principal operations.
Key Financial Metrics
| Metric | Value (as of/for period ended March 31, 2009) |
|---|---|
| Revenue | $0 |
| Net Loss (3 months) | $(99,868) |
| Net Loss (9 months) | $(101,068) |
| Accumulated Deficit (Inception to date) | $(105,568) |
| Cash and Cash Equivalents | $7,624 |
| Total Assets | $50,582 |
| Total Liabilities | $250 (Accounts Payable) |
| Stockholders' Equity | $50,332 |
| Shares Outstanding | 12,400,000 |
Material Changes vs. Prior Period
- Revenue: Remained at $0, consistent with the prior period and inception.
- Expenses: Significant increase in operating expenses compared to the prior year. Professional fees were $83,033 for the three months ended March 31, 2009, compared to $0 in the same period in 2008.
- Assets: Total assets increased from $2,900 (June 30, 2008) to $50,582 (March 31, 2009), driven primarily by the purchase of $33,500 in equipment intended for leasing and an increase in cash.
- Capital Structure: Shares outstanding increased from 7,400,000 to 12,400,000 following a public offering that raised approximately $150,000 in the fourth quarter of 2008.
Outlook, Risks, and Management Commentary
- Going Concern: The filing explicitly states substantial doubt about the company's ability to continue as a going concern. The company has no established source of revenue and relies on obtaining additional capital to fund operations.
- Capital Needs: Management estimates a need to raise a minimum of $25,000 over the next 12 months to cover operating expenses (bookkeeping, accounting, filing fees) and maintain reporting status. Without this capital, the business may fail.
- Business Plan: The company purchased $33,500 of equipment to lease out but has not yet implemented its strategic business plan. It is currently seeking quotation on the Over-the-Counter Bulletin Board (OTCBB), though no market currently exists for its stock.
- Risks: High risk of total loss of investment if financing is not secured. The company faces intense competition from larger, better-capitalized entities in the equipment leasing sector.
Investor Verification Checklist
- Capital Raise Status: Verify if the company has secured the estimated $25,000 required for survival over the next 12 months.
- Revenue Generation: Confirm if the company has begun leasing the $33,500 of equipment purchased and generated any actual revenue.
- Market Listing: Check if the company has successfully obtained a quotation on the OTCBB to establish a trading market for its shares.
- Shell Company Status: Note that the company is classified as a shell company with no active operations, presenting high speculative risk.