Business Context and Reporting Period
Company: Blue Moose Media, Inc. (Note: Input metadata listed "LIQTECH INTERNATIONAL INC," but the filing text identifies the registrant as Blue Moose Media, Inc.)
Reporting Period: Fiscal year ended December 31, 2010.
Status: Development stage company and shell company.
Business Model: The Company ceased its original media production operations in 2007. It currently operates as a shell company seeking a reverse acquisition or merger with an existing operating entity to provide a public listing vehicle. It has no active business operations, no employees, and no specific target identified.
Key Financial Metrics
| Metric | 2010 | 2009 |
|---|---|---|
| Revenue | $0 | $0 |
| Net Loss | $(24,368) | $(29,363) |
| Total Assets | $5,498 | $5,821 |
| Cash and Cash Equivalents | $5,425 | $5,600 |
| Total Liabilities | $16,647 | $12,602 |
| Stockholders' Deficit | $(11,149) | $(6,781) |
| Shares Outstanding | 41,371,750 | 21,371,750 |
Debt and Liquidity: The Company holds $5,425 in cash against $16,647 in total liabilities, resulting in a working capital deficit. Liabilities include $10,298 in accounts payable, a $5,000 note payable to an unrelated third party (8% interest), and $1,325 in advances from a related party. The Company relies on advances from its President to cover operating costs.
Material Changes vs. Prior Period
- Capital Structure: Issued 20,000,000 shares of common stock in April 2010 for $20,000 cash to an accredited investor, doubling the share count from 2009. This transaction resulted in a change in control.
- Debt: Incurred a new $5,000 note payable in December 2010, which was not present in 2009.
- Loss Reduction: Net loss decreased by approximately $5,000 compared to 2009, primarily due to lower general and administrative expenses ($24,344 in 2010 vs. $29,363 in 2009).
- Asset Base: Total assets declined slightly due to depreciation of property and equipment and cash burn from operations.
Outlook, Risks, and Management Commentary
Guidance and Outlook: Management anticipates expenses of approximately $15,000 for the next 12 months. The Company expects to continue operating at a loss until a business combination is consummated. There is no assurance that a target company will be identified or that a merger will be completed on favorable terms.
Going Concern: The independent auditor has issued a "going concern" opinion, citing substantial doubt about the Company's ability to continue operations due to accumulated losses, negative working capital, and lack of profitable operations. The Company's ability to continue depends on securing additional financing or completing a merger.
Risks:
- Shell Company Status: No current business operations or revenue streams.
- Liquidity: Limited cash reserves ($5,425) may be insufficient to cover reporting and legal fees without further advances from management.
- Stock Liquidity: Common stock is traded on the OTCBB with no active market or trading volume in 2010 or 2011. Subject to "Penny Stock" rules, limiting resale ability.
- Tax Compliance: The Company is delinquent in filing income tax returns, though management believes no taxes are currently owed.
Investor Verification Checklist
- Identity Discrepancy: Verify why the request metadata listed "LIQTECH INTERNATIONAL INC" while the filing is for "Blue Moose Media, Inc."
- Going Concern Viability: Confirm if the President has provided the anticipated advances to cover the estimated $15,000 annual operating cost.
- Merger Progress: Investigate if any negotiations with a target company have commenced, as none were disclosed in the filing.
- Tax Status: Verify the status of delinquent tax returns and potential penalties with the IRS.
- Stock Liquidity: Assess the risk of total illiquidity given the lack of trading volume and Penny Stock restrictions.