Filing summary
Entity mismatch: The request identifies LIQTECH INTERNATIONAL INC, but the supplied Form 10-Q is for BLUE MOOSE MEDIA, INC. This summary reflects the filing provided, not LiqTech. The filing covers the quarter and six months ended June 30, 2011.
Business context and reporting period
Blue Moose describes itself as a development-stage company and a shell company. It had ceased its media-production business and was seeking a business combination or other operating opportunity. It reported no acquisition target, negotiations, or specific business plan. The interim financial statements are unaudited.
Financial results and liquidity
| Metric | Three months ended June 30, 2011 | Six months ended June 30, 2011 |
|---|---|---|
| Revenue | $0 | $0 |
| General and administrative expense | $6,008 | $11,914 |
| Interest expense | $159 | $255 |
| Net loss | $6,167 | $12,169 |
| Net loss per share | $0.00 loss, rounded | $0.00 loss, rounded |
At June 30, cash was $252, total assets were $252, liabilities were $23,570, and stockholders’ deficit was $23,318. Current liabilities of $15,570 comprised $13,966 accounts payable, $1,325 related-party advances, and $279 accrued interest. The company also had $8,000 of notes payable, bearing 8% interest and due 24 months after issuance. The filing provides no meaningful revenue margin measure because revenue was zero.
Six-month operating cash use was $8,173, offset by $3,000 of financing proceeds, resulting in a $5,173 decline in cash from $5,425 at year-end 2010. There was no investing cash flow in the period. The filing does not present a clear cash runway beyond management’s estimate of ongoing expenses of about $20,000 per year.
Changes versus the prior comparable period
Six-month net loss narrowed to $12,169 from $14,391 in 2010, while general and administrative expense fell to $11,914 from $14,391. Revenue remained zero. Cash used in operations increased to $8,173 from $4,690. The company borrowed an additional $3,000 during the first half of 2011, and liabilities rose to $23,570 from $16,647 at December 31, 2010.
On June 8, 2011, 30 million shares were canceled and returned to authorized status; a three-for-one forward split became effective June 27. The filing reports 94,115,250 shares outstanding after the split and states historical share data was restated for the split.
Outlook, risks, and unusual items
Management expected to continue searching for an acquisition and estimated public-company and administrative expenses at approximately $20,000 annually. It anticipated relying on further advances from its president, but gave no assurance funding would be available. A July 7, 2011 subsequent event was a $5,000 third-party note at 8% interest, due in 24 months, intended to fund operations.
The filing states that the company’s limited operating history, lack of an operating business, recurring losses, and dependence on external funding raise substantial doubt about its ability to continue as a going concern. Management proposed loans or additional stock sales, with no assurance of success. Any business combination could involve substantial dilution to existing shareholders. The filing reports no legal proceedings and no material changes in internal control during the period.
Important facts for investors to verify
- Confirm the issuer identity: the supplied filing is Blue Moose Media, Inc., not LiqTech International Inc.
- Verify the reported post-split share count and the cancellation and forward-split details.
- Assess near-term funding needs, including the July 2011 note, and the company’s ability to meet liabilities with only $252 in period-end cash.
- Review the going-concern warning and the absence of a named acquisition target or active negotiations.
- Check the full audited December 31, 2010 filing and subsequent SEC filings for changes in operations, financing, or capitalization.