Filing summary
Important identity discrepancy: The request identifies Senseonics Holdings, Inc., but the supplied 10-Q is filed by ASN Technologies, Inc., a Nevada company. The filing describes a location-based mobile-app business, not Senseonics. This summary reflects the supplied filing; confirm the intended company before relying on it.
Business context and reporting period
ASN Technologies reports for the quarter ended September 30, 2015. It is developing “death-valley,” a location-based app for sharing nearby, time-sensitive event reports. The filing checks the box identifying the registrant as a shell company. It reports 138,000,000 common shares outstanding as of November 11, 2015, following a 12-for-1 forward split effective November 2.
Financial results and liquidity
| Metric | Quarter ended September 30, 2015 | Comparable 2014 quarter |
|---|---|---|
| Revenue | None | None |
| General and administrative expenses | $9 | $81 |
| Professional fees | $1,750 | $21,572 |
| Interest expense | $67 | None |
| Net loss | $1,826 | $21,653 |
| Cash used in operating activities | $8,189 | $5,581 |
| Financing cash flow | $9,000 | None |
At September 30, 2015, cash and total assets were $1,807; current liabilities were $40,142, including $40,075 of accrued expenses and $67 of accrued interest. A $9,000 promissory note was also reported as a liability. The company had a $38,335 working-capital deficit and negative stockholders’ equity of $47,335. The note bears 8% interest and is due upon written demand after 90 days or on August 27, 2017, whichever comes first. No interest or income taxes were paid during the quarter.
Changes, outlook, and risks
- Quarterly net loss fell from $21,653 to $1,826, primarily because the prior-year quarter included substantially higher professional fees related to a registration statement. Operating cash use nevertheless increased from $5,581 to $8,189.
- Management says app development has taken longer than planned; the app was not yet ready for public release. The company intends to continue development and testing, then market the app and seek sponsored postings as an initial revenue source. No revenue guidance or launch date is provided.
- The filing states that the company has no established revenue source and limited working capital, creating substantial doubt about its ability to continue as a going concern. Management plans to seek equity and debt financing, but reports no formal financing commitments and gives no assurance funding will be available.
- Management concluded disclosure controls were not effective as of September 30, citing limited personnel and resources, inadequate segregation of duties, and reconciliation and control procedures not regularly performed.
- The company reports no off-balance-sheet arrangements and no pending legal proceedings. It states interim results are not necessarily indicative of full-year results.
Important facts to verify
- Whether this ASN Technologies filing is the intended filing, given the Senseonics name in the request.
- The registrant’s shell-company status and the nature and operating status of the app business.
- The note’s repayment terms, accrued liabilities, and the company’s ability to obtain additional financing.
- The share-count and equity effects of the forward split and authorized-share increase; the filing says the split was treated retroactively and describes a $113,000 increase in accumulated deficit.
- The MD&A contains an apparent period-label inconsistency, referring to “three and nine months ended March 31, 2015” while discussing the quarter ended September 30, 2015; confirm the intended period and figures against the filed statements.