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. Organic Alliance, Inc. (1442634) 10-Q published on Dec 31, 2013 at 2:10 pm
On July 1, 2013, the Company temporarily suspended operations and elected to enter the development stage. The Company will be pursuing other business opportunities in addition to the organic and Fair Trade certified fruits and vegetables global market.
Due to unfavorable financing conditions and inability to obtain suitable financing, the Company has determined that it will develop other markets in addition to the organic and Fair Trade certified fruits and vegetables global market.
Concentrations - The Company maintains cash balances at various high quality federally insured financial institutions, with balances at times, in excess of federally insured limits. Management believes that the financial institutions that hold the Company’s deposits are financially sound and therefore pose a minimum credit risk. The Company has not experienced any losses in such accounts.
Due to the insufficient authorized but unissued shares of common stock to meet the required amount of shares for options, warrants and convertible instruments, the Company has accounted for the excess in common stock equivalents as a derivative liability in accordance with FASB ASC 815 Derivatives and Hedging. Accordingly, the derivative is marketed to market through earnings at the end of each reporting period. For the three and nine months ended September 30, 2013 the Company has recorded an expense of $25,047, as a part of the derivative liability on the accompanying condensed balance sheet.
For the three months ended September 30, 2013, we had general and administrative (G&A) expenses of $297,235 compared to $564,486 for the three months ended September 30, 2012. The decrease in G&A expenses of $267,069, or 47%, is primarily attributable to decreased payroll expenses of approximately $307,000 as no payroll expense was recording for the three months ended September 30, 2013, decreased travel of approximately $55,000 and decreased other expenses of approximately $21,000, offset by the write off inventory and deposits for approximately $116,000.