Business Context and Reporting Period
This Form 10-Q covers the quarterly period ended September 30, 2010, for Excaliber Enterprises, Ltd. (Note: The input metadata referenced "Vistagen Therapeutics," but the filing text explicitly identifies the registrant as Excaliber Enterprises, Ltd.). The company is a Nevada corporation classified as a development stage entity and a shell company. Its stated business is selling specialty gift baskets to health care professionals, organizations, patients, and real estate agents. As of the reporting date, the company had generated no revenue since its inception in October 2005.
Key Financial Metrics
| Metric | Three Months Ended 9/30/10 | Nine Months Ended 9/30/10 | Inception to 9/30/10 |
|---|---|---|---|
| Revenue | $0 | $0 | $0 |
| Total Expenses | $2,123 | $7,004 | $55,573 |
| Net Loss | $(2,123) | $(7,034) | $(55,693) |
| Cash and Cash Equivalents | $2,262 (as of 9/30/10) | ||
| Total Current Liabilities | $3,419 (as of 9/30/10) | ||
| Stockholders' Deficit | $(658) (as of 9/30/10) |
Debt and Liquidity: The company holds $2,262 in cash against $3,419 in current liabilities. Liabilities consist of $2,889 in accounts payable, $500 in notes payable to a related party, and $30 in notes payable to a third party. The company has a $20,000 revolving line of credit that expired as of September 30, 2010, with $0 borrowed.
Material Changes vs. Prior Period
- Expense Reduction: Total expenses for the nine months ended September 30, 2010, were $7,004, a significant decrease from $20,561 in the same period in 2009. This reduction was primarily driven by a decrease in general and administrative expenses from $20,240 to $6,556.
- Net Loss Improvement: The net loss for the nine-month period improved to $(7,034) from $(20,591) in the prior year comparable period.
- Cash Position: Cash increased from $556 at December 31, 2009, to $2,262 at September 30, 2010, largely due to $6,500 in donated capital from an officer/director and proceeds from notes payable.
- Executive Compensation: The company recorded $127 in executive compensation for the three months ended September 30, 2010, compared to $0 in the same period in 2009.
Outlook, Risks, and Management Commentary
Going Concern: The filing explicitly states that the company's ability to continue as a going concern is in doubt. Management believes current cash ($2,262) is insufficient to maintain operations for the next 12 months. The company is dependent on securing additional equity or debt financing, with no assurance of success.
Plan of Operation: Management estimates a need for at least $16,000 to execute its business strategy. Proposed uses of funds include:
- Website Improvement: Up to $6,000 to add e-commerce functionality to www.ExcaliberStore.com.
- Marketing: Up to $10,000 allocated for web advertising (Google, Bing, Yahoo) and direct sales materials.
Risks: The company has no revenue history, relies on donated capital and related-party loans, and faces substantial doubt regarding its ability to satisfy financial obligations. There are no material contracts or off-balance sheet arrangements.
Investor Verification Checklist
- Company Identity: Verify that the filing is for Excaliber Enterprises, Ltd., not Vistagen Therapeutics, Inc., as indicated in the metadata.
- Capital Sufficiency: Confirm the company's ability to raise the estimated $16,000 required for operations, given the current cash balance of only $2,262.
- Related Party Dependence: Note the reliance on an officer/director for $8,100 in donated capital and $500 in debt, as well as free office services.
- Revenue Generation: Assess the viability of the business model given zero revenue since inception in 2005 and the lack of an active e-commerce platform.
- Debt Obligations: Review the terms of the $530 in notes payable, which are due on demand and bear no interest.