Filing identity and reporting period
Important identity mismatch: Although the request names Senseonics Holdings, Inc., the supplied Form 10-Q identifies the registrant as ASN Technologies, Inc., a Nevada company developing a location-based mobile application. This summary reflects the supplied filing and should not be attributed to Senseonics without verification.
The filing covers the quarter ended September 30, 2014, which is fiscal Q1 according to the filing’s fiscal-year budget. It reports unaudited results and cautions that interim results are not necessarily indicative of full-year results.
Financial results and liquidity
| Metric | Quarter ended September 30, 2014 / period-end |
|---|---|
| Revenue | None reported; the company had not generated operating revenue. |
| Expenses | $21,653, comprising $21,572 of professional fees and $81 of general and administrative expenses. |
| Net loss | $21,653. The filing shows basic and diluted loss per share as a dash, so a clear per-share value is not provided. |
| Cash used in operations | $5,581; ending cash was $4,419, down from $10,000 at June 30, 2014. |
| Assets and liabilities | Total assets were $4,419, all cash. Accrued expenses/current liabilities were $18,991; no debt balance is reported. |
| Working capital | Deficit of $14,572, as stated by management. |
Profit margins are not meaningful because the company reported no revenue. No interest or income taxes were paid in the quarter. A $7,362 tax benefit was offset by a valuation allowance, leaving no net tax benefit or recognized deferred tax asset.
Changes, outlook, and risks
- Compared with June 30, 2014, cash fell by $5,581, accrued expenses increased from $2,919 to $18,991, and stockholders’ equity shifted from $7,081 to a deficit of $14,572. The filing does not provide prior-year comparable-quarter operating results.
- On December 10, 2014, after quarter-end, the company issued 1.5 million shares for $15,000 in cash. The cover reports 11.5 million shares outstanding as of December 15, 2014. Management said the offering was fully subscribed and expected cash, together with the offering, to fund its stated budget through fiscal year-end; funding beyond then depends on revenue or additional financing.
- The company planned to release a fully functional web application in early 2015 and native iPhone and Android applications by late 2015. Its fiscal 2015 operating budget totaled $20,080, primarily legal/accounting and marketing costs. Initial revenue was expected from paid sponsored postings, but there was no assurance of user growth or commercial success.
- The financial statements disclose substantial doubt about the company’s ability to continue as a going concern. Management expected to seek equity or debt financing; no formal future financing commitments were reported.
- Disclosure controls and procedures were concluded to be ineffective as of September 30, 2014, due mainly to limited staffing, inadequate segregation of duties, and reconciliation and control procedures not regularly performed. No changes in internal control over financial reporting were reported during the quarter.
- The filing reports no pending legal proceedings and no off-balance-sheet arrangements. It identifies financial, operational, technological, regulatory, capital-availability, and business-failure risks.
Most important facts to verify
- Confirm the registrant: the supplied filing is for ASN Technologies, Inc., not Senseonics Holdings, Inc.
- Confirm the intended reporting period: the filing’s quarter ended September 30, 2014; the request labels it 2014 Q1.
- Verify the December 2014 share issuance, proceeds, and resulting shares outstanding, and distinguish these subsequent events from September 30 balances.
- Assess the going-concern warning, cash runway, and availability of financing, given the quarter-end cash balance and working-capital deficit.
- Review the ineffective-controls disclosure and the filing’s planned application launch, user-growth assumptions, and proposed sponsored-posting revenue model.
- Reconcile the share authorization disclosures: the balance sheet lists 100 million authorized common shares, while the capital-stock note describes 90 million authorized common shares and 10 million preferred shares.