Filing summary
Entity and period: The supplied filing is Scoop Media, Inc.’s unaudited Form 10-Q for the quarter ended February 28, 2013, not a filing identified as Chiron Real Estate Inc. Scoop describes itself as a development-stage company developing an online dating review and information website. It reported no business operations or revenue through the period.
Financial results and condition
- Revenue: $0 for the three and six months ended February 28, 2013, and for the comparable 2012 periods. The company reported no revenue from inception through February 28, 2013.
- Expenses and loss: Quarterly general and administrative expense and net loss were $3,572, versus $97 in the prior-year quarter. Six-month expense and net loss were $31,192, versus $7,732 in the prior-year period. Accumulated deficit since inception was $81,759.
- Margins: Not meaningful because there was no revenue.
- Cash flow: Six-month operating cash use was $28,192, compared with $232 in the prior-year period. A $25,000 stock issuance provided financing; cash declined from $12,313 at August 31, 2012 to $9,121 at February 28, 2013.
- Liquidity and liabilities: Cash was $9,121 against current liabilities of $10,880, including $10,500 accrued liabilities and $380 owed to the president. Stockholders’ equity was negative $1,759. The $380 related-party balance is unsecured, non-interest-bearing, and due on demand. The filing reports no other debt.
- Shares: On September 25, 2012, the company issued 2.5 million shares for $25,000; shares outstanding rose from 5.5 million to 8 million.
Changes, outlook, and risks
- Six-month expenses and losses increased substantially year over year, while revenue remained zero. Quarterly losses also increased from the prior-year quarter.
- Management plans to launch a website with dating-site reviews, search features, forums, advertising, and referral commissions. It expects advertising and referral arrangements to generate revenue, but the business model had not been implemented by the reporting date.
- Management said it believed revenue could begin within 60 days of launch, initially from Google AdSense. This is an expectation, not reported revenue or assured guidance.
- The filing states that substantial doubt exists about the company’s ability to continue as a going concern without additional capital. Management said available funds were insufficient to maintain SEC reporting for more than 12 months and that the company needed financing to execute its plan.
- A registered offering of 10 million shares at $0.01 per share had no minimum sale requirement; the filing says no shares had been sold in that offering to date. The company says it is highly dependent on the offering, and alternative financing may be unavailable or costly. Officers indicated they might provide unsecured loans to support reporting costs, but no written agreement or contract was in place.
- Management reported effective disclosure controls as of February 28, 2013, with no material changes to internal control over financial reporting during the quarter. It reported no pending material legal proceedings or material off-balance-sheet arrangements.
Important facts to verify
- Confirm the issuer: the provided filing names Scoop Media, Inc., not Chiron Real Estate Inc.
- Verify the status and proceeds of the registered offering and any subsequent financing or officer loans.
- Check whether the planned website launched and whether the stated revenue expectations were realized.
- Review subsequent filings for liquidity, going-concern developments, and any changes in share count or liabilities.