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. MANGO CAPITAL INC (947969) 10-Q published on Nov 14, 2011 at 2:34 pm
Reporting Period: Sep 29, 2011
Our technology business currently generates no revenue and is not the main focus of management. We currently have one channel partner and we are evaluating alternate applications for our intellectual property including the possible sale or assignment of our intellectual property or seeking additional channel partners to exploit what management feels are significant intellectual property rights in this technology based society.
Note receivable related party represents an amount pursuant to an agreement entered into on January 29, 2009. Under this agreement the Company agreed to loan $600,000 to Plaintiff Holding XI LLC, a newly formed wholly owned subsidiary (the “Subsidiary”) of Plaintiff Funding Holding, Inc., d/b/a LawCash (“LawCash”). Such $600,000 loan is evidenced by a secured promissory note issued by the Subsidiary to MangoSoft having a term of one (1) year and bearing interest at the rate of 14% per annum (the “MangoSoft Secured Note”). The loan was renewed on January 29, 2010 with a term of one year and bearing interest at the rate of 14% per annum. LawCash, through its various subsidiaries, is in the business of financing litigations, and the proceeds of the loan were used to fund various plaintiffs’ receivables in the normal course of LawCash’s business. The loan maturity date was extended on January 29, 2011 for sixty (60) days and the interest rate was raised to a rate of 16.0% per annum. We received a partial payment of $200,000 on March 24, 2011. On March 31, 2011, the loan maturity date was extended for ninety (90) days and the interest rate remained at the rate of 16.0% per annum. On June 28, 2011, the loan was paid in full. Interest income recognized was $31,659 during the nine months ended September 30, 2011.
Since September 30, 2011, the Company felt it was necessary to put in place work force reductions, at the Company and subsidiary level, in an effort to reduce the overall administrative expenses and cost of sales. Two (2) positions have been eliminated as a result of these work force reductions. The cost savings will not be fully realized until Q1 2012 as certain expenses associated with the work force reductions (such as severance pay) will be paid in Q4. Also, in regards to the individuals that were laid off in Q3, the severance has been fully paid as of the quarter ending September 30, 2011.
The Company is in the midst of performing its annual goodwill impairment test. The initial test leads Management to believe that there will be a material goodwill impairment adjustment which will be reflected in our financial statements that will be included in our annual report on Form 10K for the year ending December 31, 2011.
Other Legal and Professional Fees. Our other legal and professional fees increased by 173% to $54,611 in 2011 from $20,008 in 2010. The increase was due to accounting and computer network service expenses related to our structured settlement business line, which was acquired in December 2010.