Biocardia, Inc. quarterly report, Q4 FY2007

Business Context and Reporting Period

This Form 10-QSB covers the quarterly period ended December 31, 2007, for clickNsettle.com, Inc. (CLIK). The company is a shell corporation with no operating business, having sold its Alternative Dispute Resolution (ADR) business in January 2005. Management's primary objective is to consummate a merger or acquisition with an operating company. A change of control occurred on September 26, 2007, and a pending transaction to sell 51% of the company to new investors is expected to close in the first half of 2008.

Key Financial Metrics

Metric Three Months Ended Dec 31, 2007 Six Months Ended Dec 31, 2007 Balance Sheet (Dec 31, 2007)
Revenue $0 $0 N/A
Net Loss $(45,450) $(138,283) N/A
Operating Expenses $58,974 $153,061 N/A
Interest Income $13,524 $14,778 N/A
Cash and Cash Equivalents N/A N/A $1,419,351
Total Liabilities N/A N/A $9,361
Working Capital N/A N/A $1,434,998

Note: The company has no operating revenue. Expenses consist primarily of professional fees and general administrative costs required to maintain public reporting status.

Material Changes vs. Prior Period

  • Net Loss Increase: The net loss for the three months ended December 31, 2007, was approximately $45,500, compared to $17,800 for the same period in 2006. This increase is driven by higher professional fees ($27,000) and administrative expenses ($31,900) in the current quarter.
  • Interest Income Surge: Interest income rose significantly to $13,500 in the current quarter from $900 in the prior year quarter. This is attributed to working capital contributed during the September 2007 change of control.
  • Cash Position: Cash balances increased dramatically to approximately $1.42 million as of December 31, 2007, following the sale of restricted securities to new investors in September 2007. In contrast, cash was only $82,097 at the beginning of the six-month period.
  • Expense Volatility: Operating expenses were significantly higher in the quarter ended September 30, 2007, due to change-of-control costs, resulting in a lower expense profile for the quarter ended December 31, 2007.

Outlook, Risks, and Contingencies

  • Plan of Operation: Management intends to use cash on hand and/or stock to acquire an operating business. There are no current contractual commitments for an acquisition.
  • Pending Transaction: On December 19, 2007, the company agreed to sell 51% of its post-reverse-split shares to a group of investors. The purchase price will equal the company's net cash on the closing date. Closing is expected in the first six months of 2008.
  • Liquidity: Management believes current funds are sufficient to cover expenses for at least the next twelve months.
  • Risk Factors:
    • No Operating Business: The company generates no revenue and relies entirely on finding a merger target.
    • Dilution: Any future acquisition is expected to be funded via stock issuance, causing significant dilution to existing shareholders.
    • Penny Stock Rules: Trading is subject to NASD OTC Electronic Bulletin Board rules and SEC Rule 15g-9 due to the stock price being under $5.00, which may limit liquidity.

Investor Verification Checklist

  • Transaction Status: Verify if the 51% sale to new investors (expected H1 2008) has closed and the resulting cash injection.
  • Reverse Stock Split: Confirm the implementation of the approved one-for-ten reverse stock split.
  • Acquisition Progress: Monitor for any announcements regarding a definitive agreement for a business combination.
  • Cash Burn Rate: Track monthly operating expenses to ensure the $1.42 million cash balance remains sufficient for the 12-month runway.
  • Stock Liquidity: Review trading volume and bid-ask spreads given the penny stock classification.