Filing identity and reporting period
Important mismatch: The supplied filing is for ASN Technologies, Inc., not Senseonics Holdings, Inc. It is a Form 10-Q for the quarter ended March 31, 2015—not a 2014 Q3 filing. The summary below reflects the supplied filing.
ASN, incorporated in Nevada in June 2014, described its business as developing a location-based mobile application called “death-valley” for sharing nearby event information. It checked the box identifying it as a shell company. Financial statements are unaudited and presented in U.S. dollars.
Financial results and liquidity
| Metric | Three months ended Mar. 31, 2015 | Nine months ended Mar. 31, 2015 |
|---|---|---|
| Revenue | None | None |
| General and administrative expense | $9 | $1,071 |
| Professional fees | $1,650 | $24,872 |
| Total expenses / net loss | $1,659 | $25,943 |
No gross margin or operating margin is reported; there was no revenue. The filing provides no prior-year comparable results in the statements of operations.
At March 31, 2015, cash and total assets were $14,729; accrued expenses and total current liabilities were $18,591. Working capital and stockholders’ equity were both negative $3,862. No debt balance is reported. For the nine months, operating cash outflow was $10,271, proceeds from common stock were $15,000, and cash increased by $4,729 to $14,729. No interest or income taxes were paid.
Changes, outlook, and risks
- Compared with June 30, 2014, cash rose from $10,000 to $14,729, accrued expenses increased from $2,919 to $18,591, and accumulated deficit grew from $2,919 to $28,862. The company issued 1.5 million shares for $15,000 in December 2014.
- Development was slower than planned: the company had a web prototype but had not released the application publicly, despite an earlier target of early 2015. It planned to improve the web app, begin marketing upon release, and target iPhone and Android clients by late 2015. These plans are not assured.
- Management expected expenses to rise as development continued. The company intended to offer the app free and anticipated sponsored venue postings as its initial revenue source, but it had generated no revenue and had no formal financing commitments.
- The filing states that limited working capital, operating losses, and lack of revenue create substantial doubt about the company’s ability to continue as a going concern. Management planned to seek equity and/or debt financing; success and availability on acceptable terms were uncertain.
- Disclosure controls and procedures were reported ineffective as of March 31, 2015, primarily due to limited staffing and resources, including insufficient segregation of duties and irregular reconciliations. No changes in internal control over financial reporting were reported during the quarter.
- The company reported no pending legal proceedings, off-balance-sheet arrangements, or material subsequent events. It stated that it neither owned nor leased property; an officer provided office services without charge.
Important facts for investors to verify
- Confirm the issuer and period: this document identifies ASN Technologies, Inc. and the quarter ended March 31, 2015, notwithstanding the request metadata.
- Verify the company’s shell-company status, business identity, and progress toward a public product launch.
- Assess cash runway, accrued liabilities, and whether additional financing was obtained after the reporting date; the filing reports no committed financing.
- Review the going-concern disclosure and the company’s ability to generate revenue or secure funding.
- Consider the ineffective disclosure controls and whether identified control weaknesses were subsequently remediated.