Get Started for Free Contexxia identifies hard-to-find pieces of information in SEC filings. No more highlighters, no more redlining, no more poring over huge documents. ASPIRE INTERNATIONAL, INC. (1049861) 10-K published on Apr 15, 2011 at 4:38 pm
Reporting Period: Dec 30, 2010
Aspire International Group - Our online business-to-consumer shopping marketplace segment generates revenues primarily from membership fees paid by sellers. The membership fees are collected on an annual basis in advance, at the beginning of the year and are non-refundable. The memberships fees are determined based on the number of items listed for sale by the members and amount of website hosting space utilized by the member on the Mygos website. Revenues are recorded as they are earned, on a monthly basis over the service period. The portion of revenues that has been collected but not yet recognized is deferred and carried as a liability on the balance sheet. In the event that a customer cancels their membership at some point during the year, the remaining amount of deferred revenue from that customer will be recognized immediately.
Aspire International Group Ltd. (AIGL) is a wholly owned subsidiary which was incorporated in Hong Kong on August 30, 2010. This company was established in order to prepare for growing business in Hong Kong and China. AIGL will explore, identify and conduct due diligent on potential business opportunities in the area for acquisition. In September 2010, AIGL started to explore the potential of online shop business opportunities in China and identify a potential target for acquisition - www.mygos.net.
Aspire International (Canada) Inc. was incorporated in December 23, 2010, in the Province of Ontario, Canada. Aspire International (Canada) Inc. is a wholly owned subsidiary, the Company was established to handle the day to day operations and administrative support for its parent company, Aspire International Inc.
During the year 2010 the company recorded a write down of assets of $263,365. This write down was based on an independent third party observation report which concluded that further impairment loss on obsolete items and write off of lost items is considered necessary. Management agreed with their report and made the necessary adjustments to reflect the fair value of the property and equipment in 2010.
During the fourth quarter of 2010, management determined that indications of a possible impairment were present for its plant and equipment and construction in progress asset classes. These classes represent equipment for the mine which has been inactive since the first quarter of 2009. As such, management performed an on-site visit to the mine property and determined that several pieces of equipment were missing and others that were rusted. At this time, management assessed that a write off of $163,982 was required with respect to the missing items and an impairment charge of $99,383 was required for the rusted items as they would require additional improvements in order to become operational, combining for a total write off and impairment charge of $265,365.