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. Card Activation Technologies Inc (1384522) 10-Q published on Aug 06, 2012 at 4:01 pm
Reporting Period: Jun 29, 2012
On June 26, 2012, the Company entered into a noninterest bearing note payable in the amount of $40,139 due on demand. The Company issued 1,013,906 common shares at $0.01 per share on June 29, 2012 as partial repayment. As of June 30, 2012 the Company had $30,000 outstanding on this note. During July 2012, the Company repaid $20,000 of this obligation to the holder.
During July 2012, the Company entered into subscription agreements to issue 1,500,000 shares of stock at $0.01 per share for sale proceeds of $15,000.
Cost of revenue consists of contingency fees paid to legal counsel equal to 35% of settlement revenue. Certain of our settlements are not subject to contingency fees. Cost of revenue was zero for the three months ended June 30, 2012 and 2011, respectively, as a result of no settlements during either period.
Revenues decreased to zero for the nine months ended June 30, 2012, compared to $264,000 for the nine months ended June 30, 2011. The decrease in revenues was due to no settlements for the nine months ended June 30, 2012 compared to four for the nine months ended June 30, 2011.
Our primary sources of liquidity are the sale of our common stock, cash borrowings and cash generated from operations. On December 27, 2011, we borrowed $15,000 under a note payable with a 12 month term and interest rate of 20%. During the nine months ended June 30, 2012, we borrowed $40,139 under a note payable due on demand with no interest and we received sales proceeds of $59,889 from the sale of 6,171,800 shares of our common stock during the nine months ended June 30, 2012.