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. The registrant is Broadleaf Capital Partners, Inc., a Nevada corporation and closed-end management investment company. The filing was signed on September 16, 2011, indicating a significant delay in reporting. The Company operates primarily through its parent entity, holding a 1% interest in the Canyon Shadows L.P. real estate partnership as its sole active investment. Most subsidiaries are inactive. The Company previously operated as a Business Development Company (BDC) but rescinded that license in 2004/2005.
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 and Cash Equivalents: $0 (down from $2,990 at March 31, 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: Total Notes Payable of $1,047,954, all classified as current. Accrued interest totaled $92,618.
- Liquidity: Current liabilities exceeded current assets by $1,385,637.
Material Changes vs. Prior Period
- Operating Loss: Net loss for the nine months ended September 30, 2007, increased to $(21,861) from $(20,229) in the prior year period, primarily due to increased General and Administrative (G&A) expenses related to record storage costs.
- Cash Position: Cash balances deteriorated significantly, reaching $0 by September 30, 2007, compared to $2,990 at the end of the first quarter.
- Debt Status: The Company remained in default on two notes payable during the period, though creditors had not pursued legal action. Accrued interest continued to accumulate.
- Investment Value: The carrying value of the sole investment (Canyon Shadows) remained flat at $141,598 across all reported periods.
Outlook, Risks, and Contingencies
- Going Concern: The filing includes a substantial "Going Concern" warning. The Company has an accumulated deficit of over $15.3 million and recurring operating losses. Continuation of operations is dependent on obtaining additional capital through stock sales, debt conversions, or acquisitions.
- Internal Controls: Management concluded that disclosure controls and internal controls over financial reporting were ineffective as of September 30, 2007. Material weaknesses were identified due to limited personnel, lack of segregation of duties, and absence of an audit committee.
- Legal Proceedings: While no open proceedings were listed, the Company recorded $78,882 in judgments payable related to prior litigation settlements.
- Future Strategy: Management plans to seek joint ventures, acquisitions, or equity financing to generate revenue and utilize Net Operating Loss (NOL) carryforwards.
Investor Verification Checklist
- Reporting Delays: Verify the status of filings between 2007 and the 2011 signing date; the Company was not current on filings for several years.
- Debt Default: Confirm the current status of the $1.05 million in notes payable and whether legal action has been initiated by creditors since the filing.
- Cash Runway: Assess the Company's ability to fund operations given the $0 cash balance reported in 2007 and the lack of operating revenue.
- Investment Liquidity: Evaluate the realizable value of the 1% interest in Canyon Shadows L.P., which is the Company's only asset.
- Internal Control Remediation: Determine if the material weaknesses in financial reporting identified in 2007 have been resolved.