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. CPC OF AMERICA INC (1042728) 10-Q published on Nov 17, 2011 at 10:36 am
Reporting Period: Sep 29, 2011
Certain amounts previously reported have been reclassified to conform to the current period presentation. These reclassifications have no effect on net loss.
The Articles of Incorporation authorize a total of 20,000,000 shares of Common Stock, of which 10,149,838 are issued and outstanding, and a total of 5,000,000 shares of Preferred Stock, of which 1,265,100 shares are outstanding. There are outstanding options to purchase 1,853,907 shares of Common Stock, all of which expire in 2013 and carry exercise prices ranging from $4.45 to $7.90 per share, well above the current market price.
General and Administrative. During the nine month period ended September 30, 2011, general and administrative expenses decreased by $69,509 over the prior year nine month period. The decrease was primarily due to a decrease in other professional fees and a decrease in Directors’ compensation, offset by increases in insurance and legal fees resulting from the filing of a registration statement on Form S-1 with the SEC. Upon receipt of additional capital, we would expect general and administrative expenses to increase, though we do not anticipate an increase in officer salaries.
Net Loss. Our net loss decreased for the nine month period of September 30, 2011 compared to the same period in 2010: $709,277 and $818,865, respectively, as the increase in interest expense was offset by the decrease in general and administrative expenses in the current period and the loss on extinguishment of debt in the prior year period. We have had inadequate capital to fund our plan of operation
No drawdowns on the line of credit will occur until the Registration Statement mentioned above is approved by the SEC, and that process is ongoing at this time. The Company filed such a registration statement on February 14, 2011 and received notice of four review comments thereof. Thereafter the Company received from the SEC its annual three year review notice with the usual routine list of comments which impacted the S-1 process thereof. On September 8, 2011, the 2010 Form 10K was deemed reviewed with no other comments and an amended 2010 Form 10K was filed thereafter in September. Thus the S-1 is still in the approval process with the SEC at this time subject to operating capital to complete this approval process thereof.