Filing identity and reporting period
Important identity mismatch: The supplied filing is for ASN Technologies, Inc., not Senseonics Holdings, Inc. It is a Form 10-Q for the quarter ended December 31, 2014, covering the six months ended that date. The filing describes a Nevada-incorporated development-stage company building a location-based mobile application; it does not describe a medical-device or glucose-monitoring business.
Financial results and liquidity
| Metric | Three months ended Dec. 31, 2014 | Six months ended Dec. 31, 2014 |
|---|---|---|
| Revenue | $0 | $0 |
| General and administrative expense | $981 | $1,062 |
| Professional fees | $1,650 | $23,222 |
| Total expenses and net loss | $2,631 | $24,284 |
| Net loss per share | Reported as — | Reported as — |
At December 31, 2014, cash and total assets were $17,188, accrued expenses and total liabilities were $19,391, and stockholders’ deficit was $2,203. The company reported a working-capital deficit of $2,203. It reported no debt balance in the provided statements.
For the six months, operating cash use was $7,812, including a $16,472 increase in accrued expenses; financing provided $15,000 from common-stock sales. Cash increased by $7,188, from $10,000 at June 30 to $17,188 at December 31. Interest and income taxes paid were both reported as zero. Profit margins are not meaningful because the company had no revenue and reported a loss.
Changes and comparisons
The filing does not provide prior-year comparable-period operating results, so year-over-year changes in revenue, expenses, or loss cannot be assessed from this text. Compared with June 30, 2014, cash rose from $10,000 to $17,188; accrued expenses increased from $2,919 to $19,391; and the company moved from $7,081 of stockholders’ equity to a $2,203 deficit. On December 10, 2014, it issued 1,500,000 common shares for $15,000. Shares outstanding were 11,500,000 as of February 12, 2015.
Outlook, risks, and unusual items
- Management planned to release a more complete web application in early 2015 and native iPhone and Android applications later in 2015. Its stated initial revenue plan was paid, sponsored postings; the filing reports no revenue to date.
- The company’s budget for July 1, 2014 through June 30, 2015 was $20,080, including $10,000 for marketing, $10,000 for legal and accounting, and $80 for web hosting. Management believed existing cash could fund that budget through fiscal year-end, excluding revenue; funding beyond then depended on revenue or additional financing.
- The filing identifies substantial doubt about the company’s ability to continue as a going concern, citing no revenue, operating losses, and limited working capital. Management expected to seek equity or debt financing, but had no formal financing commitments and gave no assurance financing would be available.
- Disclosure controls and procedures were deemed ineffective as of December 31, 2014. Management cited inadequate staffing and resources, insufficient segregation of duties, and reconciliation and control procedures not performed regularly. No changes in internal control over financial reporting were reported during the quarter.
- The company reported no off-balance-sheet arrangements, pending legal proceedings, or material subsequent events. It identified business-failure, financing, operational, technological, regulatory, and competitive risks.
Facts investors should verify
- Confirm the intended issuer: the supplied filing is ASN Technologies, Inc., not Senseonics Holdings, Inc.
- Confirm the intended reporting period: the filing covers the quarter and six months ended December 31, 2014.
- Review the going-concern warning, cash runway, accrued liabilities, and lack of committed financing.
- Assess the application’s actual development and release status, user adoption, and ability to generate sponsored-posting revenue; these are plans, not demonstrated results in this filing.
- Consider the disclosed ineffective controls and whether subsequent filings report remediation.