Business context and reporting period
The supplied filing is Scoop Media, Inc.’s unaudited Form 10-Q for the quarter ended May 31, 2012, not a filing identified in its text as belonging to Chiron Real Estate Inc. Scoop Media was a development-stage company planning an online dating-site review and information website; it reported that it had not commenced operations or generated revenue. Its fiscal year ends August 31.
Financial results and condition
| Metric | Reported amount |
|---|---|
| Revenue, inception through May 31, 2012 | $0 |
| Expenses, three months ended May 31, 2012 | $25,800 |
| Expenses and net loss, nine months ended May 31, 2012 | $33,532 |
| Accumulated deficit, May 31, 2012 | $33,991 |
| Cash, May 31, 2012 | $27,389 |
| Current liabilities, May 31, 2012 | $6,380 |
| Stockholders’ equity, May 31, 2012 | $21,009 |
| Net cash used in operating activities, nine months ended May 31, 2012 | $20,032 |
The nine-month net loss was $33,532, or $0.01 per share; the three-month net loss was $25,800, reported as $0.00 per share. No meaningful revenue or profit margins are available because the company had no revenue. The filing reports no interest paid and no material off-balance-sheet arrangements.
Changes versus prior periods
Compared with August 31, 2011, cash declined from $47,421 to $27,389, prepaid expenses fell from $7,500 to zero, and current liabilities rose from $380 to $6,380, including $6,000 of accrued liabilities. Accumulated deficit increased from $459 to $33,991. The filing does not provide a directly comparable prior-year three- or nine-month operating-results period; its inception-to-date figures are not like-for-like comparisons.
Outlook, risks and other matters
- Management stated that the company had not implemented its business model and expected to require additional capital to develop and operate the website. It believed revenue might begin within 60 days after launch, primarily from Google AdSense, but this was a forward-looking expectation, not an achieved result.
- The filing says there is substantial doubt about the company’s ability to continue as a going concern without additional financing. Available funds were stated to be insufficient to maintain SEC reporting status beyond 12 months.
- A registered offering of up to 10,000,000 shares at $0.01 per share had become effective, but no shares had been sold by the report date. The offering had no minimum, so it could raise no or minimal proceeds. Possible shareholder/director loans were not secured by a contract or written agreement.
- Management reported effective disclosure controls and no material change in internal control over financial reporting during the quarter. The company reported no pending material legal proceedings or subsequent events through the report date.
Important facts to verify
- Confirm the issuer: the supplied filing names Scoop Media, Inc., whereas the request metadata names Chiron Real Estate Inc.
- Verify whether the share offering raised funds after the report date and whether other financing was obtained.
- Check whether the website was launched, generated revenue, or required additional funding, and whether the stated 60-day revenue expectation was met.
- Assess the company’s going-concern status and the availability of any shareholder support, which the filing describes as unsecured and undocumented.