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. MICROELECTRONICS TECHNOLOGY Co (1329136) 10-Q published on May 15, 2015 at 2:04 pm
Reporting Period: Mar 30, 2015
(2) All common share amounts and per share amounts in these financial statements, reflect the one thousand-for-one reverse stock splits of the issued and outstanding shares of the common stock of the Company, effectiveMarch 16, 2015, respectively, including retroactive adjustment of common share amounts. See Note 11.
On January 15, 2015, the Board of Directors authorized a 1,000:1 reverse stock split of the common shares. The reverse stock split received regulatory approval. The record date for the reverse stock split was March 16, 2015. The authorized number of common shares remained unchanged. All references in the accompanying financial statements to the number of common shares have been restated to reflect the reverse stock split.
The Company is in the development stage and has generated $136,759 in revenues and has incurred a net loss of $7,990,548 since inception April 11, 2011. At March 31, 2015, the Company had $299,132 in current assets and $4,116,584 in current liabilities. Further, the Company incurred a loss of $4,999,179 for the nine months ended March 31, 2015. In view of these conditions, the ability of the Company to continue as a going concern is in substantial doubt and dependent upon achieving a profitable level of operations and on the ability of the Company to obtain necessary financing to fund ongoing operations. To meet these objectives, the Company continues to seek other sources of financing in order to support existing operations and expand the range and scope of its business. However, there are no assurances that any such financing can be obtained on acceptable terms, if at all. These financial statements do not give effect to any adjustments, which would be necessary should the Company be unable to continue as a going concern.
On June 1, 2014 the Company entered into a Promissory Note with Direct Capital Group in the sum of $71,237. The promissory note is unsecured, bears interest at 8% per annum, and is due on demand or in increments. During the nine months ended March 31, 2015, the Company accrued $4,278 (March 31, 2014 - $0) in interest expense.
As at March 31, 2015, the Company had total liabilities of $4,116,584 compared with $1,600,839 as at June 30, 2014. The increase in total liabilities was attributed to the increase in accounts payable, notes payable and loans to related parties.