Business Context and Reporting Period
Company: Xcellink International Inc. (formerly Blue Bird Exploration Company)
Filing Type: Form 10-Q (Unaudited)
Reporting Period: Three months ended March 31, 2009
Business Status: Exploration stage company. The entity holds an option to acquire two mineral claims in British Columbia, Canada, but has not commenced exploration. In May 2009, the company entered a license agreement for an electronic payment system to pursue a shorter route to revenue, though it has not abandoned its mineral claims.
Key Financial Metrics
| Metric | Value (USD) |
|---|---|
| Cash and Cash Equivalents (March 31, 2009) | $655 |
| Total Assets | $655 |
| Total Liabilities | $60,564 |
| Stockholders' Equity (Deficit) | ($59,909) |
| Net Loss (Three months ended March 31, 2009) | ($11,899) |
| Cumulative Net Loss (Inception to March 31, 2009) | ($78,009) |
| Net Cash Used in Operating Activities | ($9,949) |
| Net Cash Provided by Financing Activities | $9,918 |
| Shares Outstanding | 104,160,000 |
Material Changes vs. Prior Period
- Net Loss: Increased from $7,080 for the three months ended March 31, 2008, to $11,899 for the same period in 2009.
- Liabilities: Total liabilities increased from $48,697 (Dec 31, 2008) to $60,564 (March 31, 2009). This was driven primarily by an increase in amounts due to a related party (from $12,914 to $22,831) and accounts payable.
- Cash Flow: The company utilized $9,949 in operating cash flows, offset by $9,918 in financing cash flows (related party advances), resulting in a negligible net decrease in cash of $31.
- Equity: Accumulated deficit grew by $11,899 during the quarter.
Outlook, Risks, and Management Commentary
- Going Concern: The filing explicitly states substantial doubt regarding the company's ability to continue as a going concern. The company has no established revenue source and relies on obtaining additional capital to fund operations.
- Liquidity Crisis: With only $655 in cash and $60,564 in current liabilities, the company faces immediate liquidity risks. Management notes that failure to secure funding within 30-60 days could result in business failure and total loss of shareholder investment.
- Strategic Shift: While originally focused on mineral exploration (requiring estimated $61,000 over 12 months), the company recently licensed an electronic payment system to generate revenue more quickly.
- Contingencies: The company is behind on obligations under the "Bluebird Claim Purchase Agreement" regarding minimum exploration expenditures required to maintain the option on mineral claims.
- Market Risk: Although approved for quotation on the OTCBB, there have been no trades of the common stock to date.
Investor Verification Checklist
- Capital Adequacy: Verify if the company has secured the necessary financing to cover the $60,564 in liabilities and fund the proposed $61,000 exploration budget or the new payment system venture.
- Related Party Transactions: Review the terms of the $22,831 owed to the related party and the $19,333 shareholder loan to understand repayment conditions and potential dilution.
- Claim Status: Confirm the status of the mineral claims option, specifically whether the company can meet the $7,000 USD exploration cost deadline to avoid forfeiture.
- Revenue Viability: Assess the commercial viability and licensing terms of the newly acquired electronic payment system technology.
- Stock Liquidity: Monitor OTCBB trading activity to determine if a market for the stock will develop.