Business Context and Reporting Period
This Form 10-Q covers the quarterly period ended June 30, 2008, for Excaliber Enterprises, Ltd. (Note: The input metadata references "Vistagen Therapeutics," but the filing text explicitly identifies the registrant as Excaliber Enterprises, Ltd., a Nevada corporation). The company is classified as a Development Stage Company and a Shell Company. Its stated business objective is to sell specialty gift baskets to real estate and health care professionals via an online platform. As of the reporting date, the company has no operational sales, no functional website, and no identified suppliers.
Key Financial Metrics
| Metric | Three Months Ended June 30, 2008 | Six Months Ended June 30, 2008 | Inception to June 30, 2008 |
|---|---|---|---|
| Revenue | $0 | $0 | $0 |
| Total Expenses | $1,066 | $3,316 | $13,531 |
| Net Loss | $(1,066) | $(3,346) | $(13,591) |
| Cash and Cash Equivalents | $249 | $249 | $249 |
| Total Assets | $249 | $249 | $249 |
| Total Liabilities | $3,740 | $3,740 | $3,740 |
| Stockholders' Equity (Deficit) | $(3,491) | $(3,491) | $(3,491) |
| Shares Outstanding | 5,100,000 | 5,100,000 | 5,100,000 |
Liquidity and Debt: The company holds only $249 in cash. Current liabilities total $3,740, consisting of $3,240 in accounts payable and a $500 non-interest-bearing note payable to a related party due on demand.
Material Changes vs. Prior Period
- Expense Increase: Total expenses for the three months ended June 30, 2008, were $1,066, compared to $95 in the same period in 2007. This increase is attributed to general and administrative costs.
- Liability Growth: Accounts payable increased from $240 at December 31, 2007, to $3,240 at June 30, 2008.
- Debt Incurrence: The company incurred a new $500 related-party note payable in January 2008, which was not present in the prior year-end balance sheet.
- Cash Position: Cash increased slightly from $95 (Dec 31, 2007) to $249 (June 30, 2008), primarily due to the related-party loan and a prior cash donation, offset by operating losses.
Outlook, Risks, and Management Commentary
- Going Concern Uncertainty: Management explicitly states that the company's cash on hand ($249) is insufficient to maintain operations for the next 12 months. There is substantial doubt about the company's ability to continue as a going concern without additional financing.
- Financing Needs: The company filed a Registration Statement (Form SB-2) to raise between $35,000 and $75,000. As of the filing date, no shares have been sold in this offering. Without raising at least the minimum $35,000, the company may be unable to conduct operations.
- Operational Status: The company has not yet generated revenue. Key milestones remain unmet: the website is not functional, no gift basket catalog is finalized, and no suppliers have been identified.
- Related Party Reliance: The company relies on officers and directors for office space (provided without charge) and potential loans to bridge funding gaps. There are no formal agreements for future financing.
- Risks: Significant risks include the inability to raise capital, failure to develop a functional website, and the lack of a proven business model or revenue stream.
Investor Verification Checklist
- Verify the status of the public offering (Form SB-2) to confirm if the minimum $35,000 capital raise has been achieved.
- Confirm the functional status of the company website (www.ExcaliberStore.com) and whether a product catalog has been launched.
- Assess the collectability of the $3,240 accounts payable and the terms of the $500 related-party note.
- Review the company's ability to secure third-party suppliers for gift basket assembly, as none have been identified to date.
- Monitor for any updates on the "Going Concern" status in subsequent filings, given the current cash deficit.