SEC Filing Summary — Quarter Ended March 31, 2018
Issuer identity warning: The supplied filing is for Zev Ventures, Inc., not Ondas Inc. Investors should verify that this is the intended filing before relying on the information below.
Business context and reporting period
This unaudited Form 10-Q reports results for the three months ended March 31, 2018, compared with the same period in 2017. Zev Ventures describes its business plan as buying tickets to sporting events online and reselling them through online marketplaces. Financial statements are in U.S. dollars.
Financial results and liquidity
| Metric | Q1 2018 | Q1 2017 or prior date |
|---|---|---|
| Revenue | $250 | $302 |
| Cost of sales | $173 | $1,190 |
| Gross profit (loss) | $77 | $(888) |
| Operating expenses | $6,114 | $6,516 |
| Net loss | $(6,037) | $(7,404) |
| Net cash used in operations | $(3,458) | $(6,884) |
| Net cash from financing | $6,000 | $5,050 |
| Cash and cash equivalents | $5,952 | $3,410 at Dec. 31, 2017 |
| Total assets | $8,090 | $8,127 at Dec. 31, 2017 |
| Total liabilities | $91,633 | $85,633 at Dec. 31, 2017 |
| Related-party loan | $83,133 | $77,133 at Dec. 31, 2017 |
Revenue remained minimal and fell $52 year over year. The reported gross result improved from a loss to a profit as cost of sales declined. Net loss narrowed by $1,367. Cash increased by $2,542 during the quarter, primarily reflecting $6,000 of related-party financing, while operating activities used cash.
Current assets were $8,090 and current liabilities were $91,633, leaving a working-capital deficit of $83,543. The related-party advance is unsecured, bears no interest, has no set repayment schedule, and is repayable on demand. The filing reports no debt interest expense or separate margin guidance.
Outlook, risks, and other disclosures
Management states that the company has not generated sufficient revenue to cover operating costs and that additional financing may be needed. It plans to seek funds through public or private offerings; management cautions that financing may be insufficient for 2018 requirements. The filing states that these conditions raise substantial doubt about the company’s ability to continue as a going concern. Results for the quarter are not necessarily indicative of full-year results.
No specific revenue or earnings guidance is provided. Management reported no material subsequent events, no significant off-balance-sheet arrangements, and no known material legal proceedings. It assessed disclosure controls as effective at a reasonable assurance level and reported no material quarterly change in internal control over financial reporting.
Important facts for investors to verify
- Confirm issuer identity: this filing names Zev Ventures, Inc., despite the request identifying Ondas Inc.
- Verify the very low reported revenue and the business’s operating status and plans.
- Assess the going-concern warning, working-capital deficit, and need for additional financing.
- Review the $83,133 demand loan from a related party and the company’s ability to repay it.
- Confirm share-count details: the filing reports 5,760,000 common shares outstanding at March 31, 2018.