10QSB: FUSA CAPITAL CORP
Last Update: 6:05 AM ET Jul 30, 2007
(EDGAR Online via COMTEX) -- Item 2. Plan of Operation
The following discussion and analysis of our financial condition and results of our operations should be read in conjunction with our financial statements and related notes appearing elsewhere in this report. This discussion and analysis contains forward-looking statements that involve risks, uncertainties and assumptions. The actual results may differ materially from those anticipated in these forward-looking statements.
The following discussion regarding our plan of operations for the next 12 months contains forward-looking statements that involve risks, uncertainties and assumptions. The actual results may differ materially from those anticipated in these forward-looking statements as a result of certain factors and subsequent events.
OVERVIEW
We are a development stage technology company focused on the refinement and marketing of a comprehensive suite of audio and video search engine technologies. Our objective is to become the leading innovator of search engine technologies for online consumers as well as digital content providers. To that end we currently operate and market the website searchforvideo.com which is an online video clip directory that aggregates and indexes video clips through relationships with online video providers as well as using advanced search technology to uncover videos from various sites across the web. In addition, the company also operates the beta websites www.newstowatch.com, www.podanza.com and www.iheard.com, each of which presents innovative search technology to consumers to enable them to easily find the content of their choice. It is the intention of the company to expand the number of sites that the company develops, operates and markets in the future.
CORPORATE HISTORY AND DEVELOPMENT
We were incorporated in the State of Nevada on September 13, 2000 as Galaxy Championship Wrestling, Inc., a media and entertainment company focused on developing, producing and marketing live entertainment in the professional wrestling sphere.
On March 31, 2004, unable to generate sufficient revenues to sustain our professional wrestling business, we ceased operations in this field and began exploring other business opportunities.
Also on March 31, 2004 our controlling shareholders entered into a certain private stock purchase agreement, wherein they sold an aggregate of 5,750,000 of our common shares, representing a sixty-two and seventeen twentieths percent (62.85%) controlling interest, to an unrelated third party.
By certificate of amendment filed June 17, 2004, we changed our name from Galaxy Championship Wrestling, Inc. to FUSA Capital Corporation.
During the period from March 31, 2004 until March 7, 2005 we had no meaningful operations and did not carry on any active business, focusing instead on identifying and evaluating the merits of alternative potential business and acquisition opportunities which might allow us to restart operations.
On March 7, 2005 we entered into a certain plan and agreement of reorganization with FUSA Technology Investments Corp. ("FTIC"), a Nevada corporation engaged in the emerging growth field of audio and video search engine technology, whereby we acquired all of the issued and outstanding capital stock of FTIC in addition to obtaining certain intellectual property concepts related to search engine technology as developed by FTIC and its principals.
On April 22, 2005, our board of directors declared a three-for-one common stock dividend, wherein each holder of record of our common shares as of May 3, 2005 received two additional shares for each common share then held.
Since April, 2005 we have been actively engaged in the business of developing innovative multimedia search engine technologies for consumers and digital content providers. We operate a portfolio of consumer search services including the video search engine www.searchforvideo.com, news discovery service www.newstowatch.com, internet radio search engine www.iheard.com and podcast search engine www.podanza.com.
Our principal executive offices are located at 1420 Fifth Avenue, 22nd Floor, Seattle, Washington 98101. Our phone number is (206) 274-5107.
The Company's fiscal year end is December 31.
RESULTS OF OPERATIONS
Financial Condition and Liquidity
Overview
Our financial statements contained herein have been prepared on a going concern basis, which assumes that we will be able to realize our assets and discharge our obligations in the normal course of business. We have limited capital resources. In the period from February 9, 2005 (Date of Inception) to June 30, 2007, the Company generated no significant revenues and posted a net loss of $4,833,164 resulting from costs of general and administrative expenses, website development stock compensation and interest expenses. The Company is considered a development stage company.
Cash and Working Capital
The Company's cash balance as of June 30, 2007 was $56,658, as compared to the cash balance of $68,923 as of December 31, 2006.
Three Month Period Ending June 30, 2007
Operating expenses for the three month period ended June 30, 2007 totaled $187,285 and from inception to the period ended June 30, 2007 totaled $4,853,038. The company experienced a net loss of $181,706 and $4,833,164 for the three month period ended June 30, 2007 and from inception to period ended June 30, 2007, respectively, against $19,874 revenue, $18,066 from operations and $1808 from interest in the entire period and $5579, consisting of $4916 in revenues from sales and $663 in interest for the three month period ending June 30, 2007. The major expenses during this three month period were for general and administrative expenses and legal and accounting fees.
The earnings per share (fully diluted -- weighted average) consisted of a net loss of $0.00 for the three month period ended June 30, 2007.
Liquidity and Capital Resources
For the three month period ended June 30, 2007, net cash used in operating activities, consisting mostly of loss from operations was $306,522. For the period from inception to June 30, 2007, net cash used in operating activities, consisting mostly of loss from operations was $2,318,115.
For the period from inception to June 30, 2007, net cash resulting from financing activities was in the amount of $2,454,851.
Our capital resources have been limited. We have not yet generated significant revenues, and to date have relied on the sale of equity and related party loans for cash required for our activities. No investment banking agreements are in place and there is no guarantee that the company will be able to raise capital in the future should that become necessary.
Future Financings
We anticipate that if we pursue any additional financing, the financing would be an equity financing achieved through the sale of our common stock. We do not have any arrangement in place for any debt or equity financing. If we are successful in completing an equity financing, existing shareholders will experience dilution of their interest in our company.
Off Balance Sheet Arrangements
We have no significant off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to stockholders.
Significant Contingencies
Our financial statements have been prepared assuming we will continue as a going concern. Our independent auditors have made reference to the substantial doubt about our ability to continue as a going concern in their report of independent registered public accounting firm on our audited financial statements for the year ended December 31, 2006. Our continuation is dependent upon the ability of the Company to generate profitable operations in the future and/or to obtain the necessary financing to meet its obligations and pay its liabilities arising from normal business operations when they come due. The outcome of these matters cannot be predicted with any certainty at this time and raise substantial doubt that the Company will be able to continue as a going concern.
PLAN OF OPERATION
Over the next six to twelve months we intend to focus on continuing to develop and expand our proprietary search engine technology which is at the core of our consumer search offerings as well as expanding the number of websites that the company develops, operates and markets. It is believed that this will increase the company's overall value by increasing its assets and marketability via the additional websites and by enhancing the company's intellectual property position. It is also believed that this direction will give the company an increased ability to better monetize our traffic.
By December 31, 2007, we believe that we will have enough visits to our sites, and therefore enough customer usage data and evidence of interest and usability, to begin producing advertising revenue. Our strategy involves enticing potential clients with the richness of our consumer data and the substantial traffic on our websites interest and use we hope to have already generated with our websites and size of potential revenue returns that our software can provide to these clients via enhancements in the way that they market video and audio content.
We also anticipate spending approximately $2,000,000 on operations and salaries and costs related to marketing and research and development over the course of the next twelve months. In addition to the payments for office space, we believe that we will have to spend approximately $100,000 for our servers and network administration costs.
Our twelve-month plan requires us to accomplish the following steps:
· Increase traffic to all websites by focusing on retention of current users and driving traffic for significant increases in new users to all websites.
· Continue to add cutting edge video content through additional relationships with video publishers;
· Release fully-completed versions of our www.podanza.com, www.newstowatch.com and www.iheard.com search engine websites currently in beta release
· Continue to develop our technical team;
· Continue to Compile usage statistics for our websites;
· Continue to Identify our most likely customers from amongst content providers;
· Continue to Develop rapport with likely content customers;
· Present content customers with sales presentation;
· Add at least one additional site under the "searchformedia" umbrella; and
· Architect and begin development of subsequent versions and upgrades to core technology.
Jul 30, 2007
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davon bin ich Überzeugt.
also, was willst du ?
