Neon Bloom, Inc. - Quarter Report: 2008 March (Form 10-Q)

 

FORM 10-Q

 

 

 

 

 

 

 

Nevada	20-8018146
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

 

 

 

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of "large accelerated filer,"" an accelerated filer," and  "smaller reporting company" in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer [  ]     Accelerated filer [  ]

Non-accelerated filer   [  ]             Smaller reporting company [x]

 

 

 

 

 

 

 

PART I FINANCIAL INFORMATION
Item 1.                        Financial Statements	3
Condensed Consolidated Balance Sheet March 31, 2008 (Unaudited)	3
Consolidated Statements of Operations for the Three Months and Ended March 31, 2008 and 2007 (Unaudited)	4
Condensed Consolidated Statements of Cash Flows for the Three Months and Ended March 31, 2008 and 2007 (Unaudited)	5
Notes to the Condensed Consolidated  Financial Statements	6
Item 2.                        Management’s Discussion and Analysis of Financial Condition and Results of Operations	10
Item 3.                        Quantitative and Qualitative disclosures about Market Risk	13
Item 4 and 4T.       Controls and Procedures	13
PART II. OTHER INFORMATION	14
Item 1.                        Legal Proceedings.	14
Item 2.                        Unregistered Sales of Equity Securities and Use of Proceeds.	14
Item 3.                        Default upon Senior Securities.	14
Item 4.                        Submission of Matters to a Vote of Security Holders.	14
Item 5.                        Other Information.	14
Item 6.                        Exhibits	15

 

 

 

Item 1.

Financial Statements

 

		March 31, 2008				December 31, 2007
Assets		(Unaudited)
Current assets
Cash		$	32,045			$	70,314
Accounts receivable, net			253,370				86,929
Inventory			124,147				164,248
Prepaid expenses			-				530
Total current assets			409,562				322,021
Property and equipment, net			58,171				61,581
Other assets			4,000				4,000
Total assets		$	471,733			$	387,602
Liabilities and Stockholders' (Deficit)
Current liabilities
Line of credit			41,707				35,000
Accounts payable and accrued expenses			452,888				508,243
Customer deposits			422,473				307,106
Notes payable			41,297				87,526
Legal settlement			384,000				950,154
Due to related party			259,970				240,875
Officer advances			40,315				48,610
Total current liabilities			1,642,650				2,177,514
Long term liabilities
Notes payable			33,963				36,960
Officer advances			369,375				369,375
Total liabilities			2,045,988				2,583,849
Commitments and Contingencies			-				-
Stockholders' (deficit)
Preferred stock - $0.001 par value; 1,000,000 shares authorized; zero shares issued and outstanding
			-				-
Common stock - $0.001 par value; 50,000,000 shares authorized; 7,746,143 shares issued and outstanding
			7,746				7,746
Paid in capital			1,145,397				1,145,397
Subscription receivable							(63,020	)
Accumulated (deficit)			(2,727,398	)			(3,286,370	)
Total stockholder’s (deficit)			(1,574,255	)			(2,196,247	)
Total liabilities and stockholders' (deficit)		$	471,733			$	387,602
The accompanying notes are an integral part of the financial statements

 

		2008				2007
Sales		$	471,166			$	458,515
Cost of sales			245,396				358,084
Gross margin			225,770				100,431
Operating expenses
General and administrative expenses			227,749				150,651
Total operating expenses			227,749				150,651
Income (Loss) from operations			(1,979	)			(50,220	)
Recovery of contingency			566,154
Interest expense			(5,203	)			(4,047	)
Net income (loss) before taxes			558,972				(54,267	)
Income taxes			-				(9	)
Net income (loss)		$	558,972			$	(54,276	)
Net Income (loss) per common share:
Basic		$	0.07			$	(0.01	)
Diluted			0.06				(0.01	)
Weighted average shares outstanding:
Basic			7,746,143				6,600,000
Diluted			9,561,215				6,600,000
The accompanying notes are an integral part of the financial statements

 

		2008				2007
Cash flows from operating activities
Net cash used in operating activities		$	(51,192	)		$	(8,373	)
Cash flows from investing activities
Cash received in acquisition of subsidiary							3,334
Purchase of fixed assets							(1,200	)
Net cash provided from investing activities			-				2,134
Cash flows from financing activities
Proceeds from subscription receivables			63,020				-
Proceeds of line of credit			6,707				5,269
Proceeds of notes payable			5,295				-
Repayment of notes payable			(53,804	)			(3,342	)
Repayments of officer note, net			(8,295	)			(4,602	)
Net cash provided by financing activities			12,923				(2,675	)
Decrease in cash			(38,269	)			(8,914	)
Cash, beginning of period			70,314				16,343
Cash, end of period		$	32,045			$	7,429
Cash paid for
Interest		$	4,000			$	1,526
Income taxes			-				-
Non cash investing and financing activities:
Issuance of 396,000 of common stock
In exchange for debt							198,000
The accompanying notes are an integral part of the financial statements

 

 

 

 

 

 

	Three Months Ended March 31, 2007
	As Reported				Change				As Reclassified
Reclassified items:
Cost of Sales		$	281,418			$	76,666			$	358,084
General and Administrative			227,317				(76,666	)			150,651
Net effect of reclassifications			-				-				-

 

 

		Three months ended March 31,
Region:		2008				2007
United States			48	%			100	%
Europe			52	%
Total:			100	%			100	%

 

 

 

		March 31, 2008
Raw materials		$	124,147
		$	124,147

 

 

 

 

		As of March 31, 2008
		Total amount				Current
Note payable to a financial institution in a foreign country; 12.4% per annum; monthly payments of $242		$	4,616			$	3,141
Note payable to a financial institution; 0% interest per annum; monthly payments of $756 to 2012; collateralized by an automobile.			42,317				9,828
Note payable to an individual; interest at 10% per annum			14,459				14,459
Note payable to an individual;  interest at 7%			13,869				13,869
		$	75,261			$	41,297

 

 

 

 

 

 

At December 31, 2007, a temporary difference for a loss on a contingent liability related to a legal settlement was reported. At March 31, 2008, it was determined that the contingency was less than probable and a recovery of this loss was recorded. The temporary difference was thus eliminated with a corresponding change to deferred tax items of $183,000. There has been no change to the net deferred tax asset as the net deferred tax assets have been completely reserved.

 

 

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

 

 

 

 

 

 

 

 

 

 

		Three Months ended
		March 31,
		2008				2007
Revenues			100	%			100	%
Cost of Goods Sold			-52	%			-78	%
Gross Profit			48	%			22	%
Operating Expenses:
General and Administrative			-48	%			-33	%
Total Operating Expenses			-48	%			-33	%
Other Income (Expenses)			120	%			-1	%
Income (Loss) before Taxes			-1	%			-12	%
Net income (loss)			119	%			-12	%

 

 

 

 

 

 

 

 

 

 

Item 4 and 4T.

Controls and Procedures

 

 

 

 

 

Item 1.

Legal Proceedings.

 

 

 

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds.

 

 

Item 3.

Default upon Senior Securities.

 

 

Item 4.

Submission of Matters to a Vote of Security Holders.

 

 

Item 5.

Other Information.

 

 

 

Item 6.

Exhibits

 

No.	Exhibit
31.1	Certification by Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Certification by Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1	Certification by Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2	Certification by Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

 

 

 

 

	Phoenix International Ventures, Inc.
	(Registrant)
May 12, 2008	By:	/s/ Zahir Teja
		Zahir Teja President and Chief Executive Officer