AiAdvertising, Inc. - Quarter Report: 2008 September (Form 10-Q)

Commission File Number:	0-13215
WARP 9, INC.
(Exact name of registrant as specified in its charter)
CALIFORNIA	30-0050402
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
50 Castilian Drive, Suite 101, Santa Barbara, CA 93117
(Address of principal executive offices) (Zip Code)
(805) 964-3313
Registrant's telephone number, including area code
(Former name, former address and former fiscal year, if changed since last report)

Yes

[__]

No

[_X_]

Large accelerated filer	[___]		Accelerated filer	[___]
Non-accelerated filer (Do not check if a smaller reporting company)	[___]		Smaller reporting company	[_X_]

Yes

[__]

No

[_X_]

 

 

WARP 9, INC. AND SUBSIDIARY CONSOLIDATED BALANCE SHEETS
		(Unaudited)
		September 30, 2008				June 30, 2008
ASSETS
CURRENT ASSETS
Cash		$	649,195			$	680,649
Accounts Receivable, net			340,440				290,920
Prepaid and Other Current Assets			16,186				16,679
Current Portion of Deferred Tax Asset			24,734				38,849
TOTAL CURRENT ASSETS			1,030,555				1,027,097
PROPERTY & EQUIPMENT, at cost
Furniture, Fixtures & Equipment			89,485				89,485
Computer Equipment			506,906				505,603
Commerce Server			50,000				50,000
Computer Software			9,476				9,476
			655,867				654,564
Less accumulated depreciation			(572,417	)			(555,947	)
NET PROPERTY AND EQUIPMENT			83,450				98,617
OTHER ASSETS
Lease Deposit			9,749				9,749
Restricted Cash			93,000				93,000
Internet Domain, net			1,020				1,062
Long Term Deferred Tax Asset			2,003,837				2,029,859
TOTAL OTHER ASSETS			2,107,606				2,133,670
TOTAL ASSETS		$	3,221,611			$	3,259,384
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts Payable		$	88,851			$	64,799
Credit Cards Payable			2,173				15,352
Accrued Expenses			80,806				88,514
Bank Line of Credit			8,451				7,916
Deferred Income			33,000				35,333
Note Payable, Other			39,889				40,107
Note Payable, Related Party			12,981				50,481
Customer Deposit			51,436				51,436
Corporate Income Tax Payable			4,450				-
Capitalized Leases, Current Portion			18,020				23,183
TOTAL CURRENT LIABILITIES			340,057				377,121
LONG TERM LIABILITIES
Note payable, Other			64,408				74,216
Capitalized Leases			4,431				7,912
TOTAL  LONG TERM LIABILITIES			68,839				82,128
TOTAL LIABILITIES			408,896				459,249
SHAREHOLDERS' EQUITY
Common Stock, $0.001 Par Value;
495,000,000 Authorized Shares;
340,579,815 Shares Issued and Outstanding			340,579				340,579
Additional Paid In Capital			6,889,432				6,886,682
Accumulated Deficit			(4,417,296	)			(4,427,126	)
TOTAL SHAREHOLDERS'  EQUITY			2,812,715				2,800,135
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY		$	3,221,611			$	3,259,384

WARP 9, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF INCOME
		Three Months Ended September 30,
		2008				2007
REVENUE		$	467,865			$	604,494
COST OF SERVICES			37,736				39,225
GROSS PROFIT			430,129				565,269
OPERATING EXPENSES
Selling, general and administrative expenses			346,732				409,053
Research and development			16,615				1,740
Depreciation and amortization			16,513				46,134
TOTAL OPERATING EXPENSES			379,860				456,927
INCOME FROM OPERATIONS BEFORE OTHER INCOME (EXPENSES)			50,269				108,342
OTHER INCOME/(EXPENSE)
Interest Income			-				7,027
Other Income			13,883				-
Stock option expense			(2,950	)			(6,709	)
Interest Expense			(5,185	)			(81,916	)
TOTAL OTHER INCOME (EXPENSE)			5,748				(81,598	)
INCOME FROM OPERATIONS BEFORE PROVISION FOR TAXES			56,017				26,744
PROVISION FOR INCOME (TAXES)/BENEFIT
Income taxes paid			(1,600	)			-
Federal tax provision			(34,991	)			-
State tax provision			(9,596	)			-
PROVISION FOR INCOME (TAX)/BENEFIT			(46,187	)			-
NET INCOME		$	9,830			$	26,744
BASIC AND DILUTED LOSS PER SHARE		$	0.00			$	0.00
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING
BASIC AND DILUTED			340,579,815				235,095,554

 

 

 

 

 

·	statements concerning the potential benefits that Warp 9, Inc. (“W9” or the “Company”) may experience from its business activities and certain transactions it contemplates or has completed; and

·

statements of W9’s expectations, beliefs, future plans and strategies, anticipated developments and other matters that are not historical facts.  These statements may be made expressly in this Form 10-Q.  You can find many of these statements by looking for words such as “believes,” “expects,” “anticipates,” “estimates,” “opines,” or similar expressions used in this Form 10-Q.  These forward-looking statements are subject to numerous assumptions, risks and uncertainties that may cause W9’s actual results to be materially different from any future results expressed or implied by W9 in those statements.  The most important facts that could prevent W9 from achieving its stated goals include, but are not limited to, the following:

(a)

volatility or decline of the Company's stock price;

(b)

potential fluctuation in quarterly results;

(c)

failure of the Company to earn revenues or profits;

(d)

inadequate capital to continue or expand its business, and inability to raise additional capital or financing to implement its business plans;

(e)

failure to further commercialize its technology or to make sales;

(f)

reduction in demand for the Company's products and services;

(g)

rapid and significant changes in markets;

(h)

litigation with or legal claims and allegations by outside parties;

(i)

insufficient revenues to cover operating costs;

(j)

failure of the re-licensing or other commercialization of the Roaming Messenger technology to produce revenues or profits;

 

 

 

 

 

 

 

EXHIBIT NO.		DESCRIPTION
3.1		Articles of Incorporation (1)
3.2		Bylaws (1)
4.1		Specimen Certificate for Common Stock (1)
4.2		Non-Qualified Employee Stock Option Plan (2)
10.1		First Agreement and Plan of Reorganization between Latinocare Management Corporation, a Nevada corporation, and Warp 9, Inc., a Delaware corporation (3)
10.2		Second Agreement and Plan of Reorganization between Latinocare Management Corporation, a Nevada corporation, and Warp 9, Inc., a Delaware corporation (4)
10.3		Exchange Agreement and Representations for Shareholders of Warp 9, Inc.(3)
10.4		Termination and Assignment (5)
31.1		Section 302 Certification
32.1		Section 906 Certification

_________________

(1)

Incorporated by reference from the exhibits included with the Company's prior Report on Form 10-KSB filed with the Securities and Exchange Commission, dated March 31, 2002.

(2)

Incorporated by reference from the exhibits included in the Company's Information Statement filed with the Securities and Exchange Commission, dated August 1, 2003.

(3)

Incorporated by reference from the exhibits included with the Company's prior Report on Form SC 14F-1 filed with the Securities and Exchange Commission, dated April 8, 2003.

(4)

Incorporated by reference from the exhibits included with the Company's prior Report on Form 8K filed with the Securities and Exchange Commission, dated May 30, 2003.

(5)

Incorporated by reference from the exhibits included with the Company’s prior Report on Form 8K filed with the Securities and Exchange Commission, dated May 7, 2007.

Dated: November 13, 2008	WARP 9, INC.
	(Registrant)
	By: \s\Harinder Dhillon
	Harinder Dhillon, Chief Executive Officer and President

By: \s\Louie Ucciferri	Dated: November 13, 2008
Louie Ucciferri, Chairman, Corporate Secretary, Acting Chief Financial Officer (Principal Financial / Accounting Officer)

By: \s\Harinder Dhillon	Dated: November 13, 2008
Harinder Dhillon, Chief Executive Officer and President (Principal Executive Officer)