SEC Filing Summary: Broadleaf Capital Partners, Inc. (10-Q)
Business Context and Reporting Period
This Form 10-Q covers the quarterly periods ended March 31, June 30, and September 30, 2007. Broadleaf Capital Partners, Inc. is a Nevada corporation operating as a diversified investment holding company. The Company's primary active asset is a 1% limited partnership interest in Canyon Shadows, L.P., a real estate investment. Most other subsidiaries are inactive. The filing was signed on September 16, 2011, indicating a significant delay in reporting.
Key Financial Metrics (as of September 30, 2007)
- Revenue: $5,700 for the nine months ended September 30, 2007 (derived from investment distributions).
- Net Loss: $(21,861) for the nine months ended September 30, 2007.
- Cash Position: $0 as of September 30, 2007 (down from $4,445 as of June 30, 2007).
- Total Assets: $141,598 (consisting entirely of the investment in Canyon Shadows, L.P.).
- Total Liabilities: $1,527,235.
- Stockholders' Deficit: $(1,385,637).
- Debt: $1,047,954 in notes payable (all classified as current). Accrued interest totaled $92,618.
- Liquidity: Current liabilities exceeded current assets by $1,385,637.
Material Changes vs. Prior Period
- Cash Flow: Cash balances depleted to zero by the end of the third quarter, compared to $4,445 in the second quarter.
- Expenses: General and administrative expenses increased to $8,169 for the nine months ended September 30, 2007, from $6,534 in the prior year period, attributed to record storage costs.
- Net Loss: The net loss for the nine months ended September 30, 2007, was $(21,861), an increase from $(20,229) in the comparable 2006 period.
- Debt Status: The Company remained in default on two notes payable during the period, though no legal action was taken by creditors.
Outlook, Risks, and Contingencies
- Going Concern: The filing includes a "Going Concern" warning. The Company has an accumulated deficit of over $15 million and recurring losses. Continuation of operations is dependent on obtaining adequate capital to fund losses until profitability is achieved.
- Capital Strategy: Management plans to raise capital through common stock sales, converting promissory notes to stock, or entering acquisition agreements with profitable entities.
- Internal Controls: Management concluded that disclosure controls and internal controls over financial reporting were ineffective as of September 30, 2007, citing a lack of experienced personnel and insufficient segregation of duties.
- Legal Proceedings: No open or pending legal proceedings were reported, though liabilities from prior judgments remain on the books.
- Risk Factors: The stock is classified as a "penny stock," limiting liquidity. The Company has never paid dividends and does not intend to do so.
Investor Verification Checklist
- Verify the current status of the $1,047,954 in defaulted notes payable and whether any legal action has been initiated since the filing date.
- Confirm the current cash balance and operational funding status, given the zero cash balance reported in 2007.
- Assess the valuation of the sole asset (Canyon Shadows investment) and the likelihood of future distributions.
- Review subsequent filings to determine if the Company has successfully raised capital or restructured debt as planned.
- Investigate the status of the Company's SEC reporting compliance, noting the 2011 signature date on a 2007 report.