myFreightWorld Technologies, Inc. (PINKSHEETS: MYFT) announced
third quarter losses of $373,000 vs. net profit of $83,000 in the
prior-year quarter. For the nine months ended September 30, MYFT
reported a net loss of $775,000 vs. a loss of $208,000 in the
prior-year period. Comparisons between the two years are affected
by the inclusion in 2011 of results for Informed Logistics
Technologies, LLC and MFW Holdings LLC, which had the effect of
reducing reported third quarter earnings in 2011.
Revenues for the three months ended September 30, 2011 were $3.4
million vs. $2.6 million in the year-earlier quarter, an increase
of 29%. Net margin increased for the quarter from $477,000 to
$840,000, an increase of 76%.
"We have seen a significant improvement in our continuing
operations during the third quarter of 2011," said Kevin C.
Childress, President and Chief Executive Officer. "Our basic
business metrics such as daily loads, net margins and cash SG&A
expenses show significant improvement both year over year and
quarter over quarter. In addition, we expect our current trajectory
to produce profitability on an EBITDA basis by the second half of
next year and to produce net profits within two to three quarters
thereafter."
In addition, MFW announced the retention of Weaver Martin &
Samyn of Kansas City, Missouri to perform its year-end 2011 audit.
The audit and 2011 results will be completed and released on or
before March 31, 2012.
A conference call with management to discuss results and
prospects for the Company will be held today at 4:30 PM Eastern
Standard Time. Please dial 888-395-3227 and enter the passcode
5024269.
About myFreightWorld Technologies,
Inc.
myFreightWorld Technologies Inc. is a business services firm
that specializes in providing technology, transportation and supply
chain management services to third-party logistics managers (3PLs)
and transportation intermediaries (TIs), primarily in the United
States. Leveraging its proprietary Web-based software platform, the
Company provides its 3PL and Motor Carrier customers with a
Customer Relationship Management (CRM) information pipeline that
provides complete visibility to shippers, consignees and other
interested suppliers of shipments during the entire Shipment Life
Cycle. For more information, see www.myfreightworld.com.
The matters set forth in this press release may contain
forward-looking statements regarding myFreightWorld and its
business within the meaning of the "safe harbor" provisions of the
Private Securities Litigation Reform Act of 1995. Forward-looking
statements speak only as of the date on which they are made and
myFreightWorld undertakes no obligation to publicly update or
revise any forward-looking statement, whether as a consequence of
new information, future events, or otherwise. Statements are
subject to risks and uncertainties that may cause actual outcomes
to differ materially. These risks are detailed from time to time in
the company's periodic reports filed with the OTC Pinksheets
including the company's Annual Report, Quarterly Reports and other
periodic filings.
MYFREIGHTWORLD TECHNOLOGIES, INC.
CONSOLIDATED BALANCE SHEET
UNAUDITED
At SEPTEMBER 30, 2011
ASSETS
CURRENT ASSETS:
Cash $ 152,586
Accounts Receivable 1,196,625
Other Current Assets 220,374
-------------
Total current assets 1,569,585
OTHER ASSETS:
Investments 424,000
Furniture & equipment 104,233
Intellectual property 5,923,333
-------------
Total assets $ 8,021,151
=============
LIABILITIES & STOCKHOLDERS' EQUITY (DEFICIT)
CURRENT LIABILITIES
Accounts payable $ 1,624,481
Other current liabilities 1,061,996
-------------
Total current liabilities 2,686,477
LONG TERM LIABILITIES
Notes payable 2,279,643
-------------
Total liabilities 4,966,120
-------------
STOCKHOLDERS' EQUITY
Preferred stock 46,201
Common stock 304,892
Paid in capital 3,500,480
Accumulated (deficit) (796,542)
-------------
Total stockholders' equity 3,055,031
-------------
Total liabilities and stockholders' equity $ 8,021,151
=============
See accompanying notes to these unaudited consolidated financial
statements.
MYFREIGHTWORLD TECHNOLOGIES, INC.
CONSOLIDATED STATEMENT OF OPERATION
UNAUDITED
For the three months For the nine months
ended ended
September 30, September 30,
2011 2010 2011 2010
---------- ---------- ----------- ----------
REVENUES
---------------------------
Brokerage revenues $3,385,798 $2,616,152 $10,119,242 $7,902,803
---------- ---------- ----------- ----------
Total Revenue 3,385,798 2,616,152 10,119,242 7,902,803
---------- ---------- ----------- ----------
COST OF SALES
---------------------------
Brokerage cost of sales 2,406,411 1,980,867 7,592,407 6,211,818
Commission expense 139,228 158,557 401,831 452,542
---------- ---------- ----------- ----------
Total Cost of Sales 2,545,639 2,139,424 7,994,238 6,664,360
---------- ---------- ----------- ----------
Gross Profit 840,159 476,728 2,125,004 1,238,443
OPERATING EXPENSES
---------------------------
General and
administrative 1,102,816 393,915 2,603,950 1,129,803
---------- ---------- ----------- ----------
Total operating expenses 1,102,816 393,915 2,603,950 1,129,803
---------- ---------- ----------- ----------
Earnings (Loss) before
Interest, depreciation &
amortization (262,657) 82,813 (478,946) 108,640
Interest, Depreciation &
Amort. (150,046) (112,352) (296,237) (316,622)
---------- ---------- ----------- ----------
Net (loss) $ (412,703) $ (29,539) $ (775,183) $ (207,982)
========== ========== =========== ==========
See accompanying notes to these unaudited consolidated financial
statements.
MYFREIGHTWORLD TECHNOLOGIES, INC.
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
UNAUDITED
Preferred Common
Shares Amount Shares Amount
----------- --------- ----------- ---------
Balance at December 31, 2009 9,556,239 $ 9,556 188,822,180 $ 188,822
Shares issued for cash 9,060,000 9,060 2,714,786 2,715
Cash & stock-Myfreightworld
Carrier Mgmt acq. 26,903,235 26,903
Shares issued for services 13,507,540 13,507
Shares cancelled for prior
management (8,245,201) (8,245) (7,090,420) (7,089)
All Modes Transportation
acquisition 25,000,000 25,000
Conversions from preferred to
common stock (453,750) (454) 4,537,500 4,537
Net loss for the year ended
December 31, 2010
----------- --------- ----------- ---------
Balance at December 31, 2010 36,820,523 36,820 227,491,586 227,492
Shares issued for services 700,000 700
Conversions from preferred to
common stock (400,000) (400) 4,000,000 4,000
Preferred B and C for cash 3,299,327 2,159
Dividend of EXMT shares
Net loss for the 3 months
ended March 31, 2011
----------- --------- ----------- ---------
Balance at March 31, 2011 39,719,850 38,579 232,191,586 232,192
Conversions from preferred to
common stock (5,200,000) (5,200) 52,000,000 52,000
Preferred B and C for cash 4,085,000 4,085
Prior period adjustments (3,039,566) (3,040)
Net loss for the 3 months
ended June 30, 2011
----------- --------- ----------- ---------
Balance at June 30, 2011 35,565,284 34,424 284,191,586 284,192
Conversions from preferred to
common stock (1,500,000) (1,500) 15,000,000 15,000
Preferred C for cash 12,135,336 13,277
Shares issued for services 5,700,000 5,700
Acquisition costs in excess of
fair value
Net loss for 3 months ended
Sept. 30, 2011
----------- --------- ----------- ---------
Balance at September 30, 2011 46,200,620 $ 46,201 304,891,586 $ 304,892
=========== ========= =========== =========
MYFREIGHTWORLD TECHNOLOGIES, INC.
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY-cont
UNAUDITED
Paid-In Accumulated
Capital (Deficit) Total
------------ ------------ ------------
Balance at December 31, 2009 $ 306,607 $ 406,033 $ 911,018
Shares issued for cash 62,428 74,203
Cash & stock-Myfreightworld
Carrier Mgmt acq. 1,975,987 2,002,890
Shares issued for services 1,420,962 1,434,469
Shares cancelled for prior
management 15,334 0
All Modes Transportation
acquisition 1,125,719 1,150,719
Conversions from preferred to
common stock (4,083) 0
Net loss for the year ended
December 31, 2010 (427,392) (427,392)
------------ ------------ ------------
Balance at December 31, 2010 4,902,954 (21,359) 5,145,907
Shares issued for services 13,300 14,000
Conversions from preferred to
common stock (3,600) 0
Preferred B and C for cash 657,708 659,867
Dividend of EXMT shares (576,000) (576,000)
Net loss for the 3 months ended
March 31, 2011 (283,225) (283,225)
------------ ------------ ------------
Balance at March 31, 2011 4,994,362 (304,584) 4,960,549
Conversions from preferred to
common stock (46,800) 0
Preferred B and C for cash 813,515 817,600
Prior period adjustments (3,150,569) (3,153,609)
Net loss for the 3 months ended
June 30, 2011 (79,255) (79,255)
------------ ------------ ------------
Balance at June 30, 2011 2,610,508 (383,839) 2,545,285
Conversions from preferred to
common stock (13,500) 0
Preferred C for cash 1,200,257 1,213,534
Shares issued for services 51,300 57,000
Acquisition costs in excess of
fair value (348,085) (348,085)
Net loss for 3 months ended Sept.
30, 2011 (412,703) (412,703)
------------ ------------ ------------
Balance at September 30, 2011 $ 3,500,480 $ (796,542) $ 3,055,031
============ ============ ============
See accompanying notes to these unaudited consolidated financial
statements.
MYFREIGHTWORLD TECHNOLOGIES, INC.
CONSOLIDATED STATEMENT OF CASH FLOW
UNAUDITED
For the three months
ended Sept. 30,
2011 2010
----------- -----------
OPERATING ACTIVITIES
Net income (loss) for the period $ (412,703) $ (29,539)
Adjustments to reconcile net loss to net cash
(used in) provided by operating activities:
Depreciation and amortization expense 103,486 16,602
Shares issued for services 57,000 14,000
Changes in assets and liabilities
(Increase)/decrease in accounts receivable (294,018) (143,333)
(Increase)/decrease in other current assets (6,753) (166,858)
(Increase)/decrease in marketing agreement
Increase/(decrease) in accounts payable 23,823 47,388
Increase/(decrease) in other current
liabilities (64,372) 137,935
Increase/(decrease) in notes payable 231,516 (369,195)
----------- -----------
Net cash (used in) provided by operating
activities (362,021) (493,000)
----------- -----------
INVESTING ACTIVITIES
Option agreement payments
Shares issued to Myfreightworld carrier
management
Cancelled shares to prior management
Prior period adjustment for acquisition of
licensing agmt
----------- -----------
Net cash (used in) provided by investing
activities 0 0
----------- -----------
FINANCING ACTIVITIES
Preferred B shares issued for cash 493,000
Preferred C shares issued for cash 375,000 0
----------- -----------
Net cash (used in) provided by financing
activities 375,000 493,000
----------- -----------
INCREASE IN CASH 12,979 0
CASH, BEGINNING OF PERIOD 139,607 0
----------- -----------
CASH, END OF PERIOD $ 152,586 $ 0
=========== ===========
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND FINANCING ACTIVITIES
Preferred A Shares issued for Carrier Management $ 0 $ 0
Common shares for All Modes Transportation $ 0 $ 1,150,719
Preferred Shares for Informed Logistics
Technologies, LLC $ 4,362,522 $ 0
MYFREIGHTWORLD TECHNOLOGIES, INC.
CONSOLIDATED STATEMENT OF CASH FLOW
UNAUDITED
For the nine months ended
Sept 30,
2011 2010
------------ ------------
OPERATING ACTIVITIES
Net income (loss) for the period $ (775,183) $ (207,982)
Adjustments to reconcile net loss to net
cash (used in) provided by operating
activities:
Depreciation and amortization expense 157,125 49,805
Shares issued for services 164,000 92,140
Changes in assets and liabilities
(Increase)/decrease in accounts receivable (471,244) 1,668,951
(Increase)/decrease in other current
assets (41,781) (2,392,269)
(Increase)/decrease in marketing agreement
Increase/(decrease) in accounts payable (687,356) 1,765,719
Increase/(decrease) in other current
liabilities 193,532 302,899
Increase/(decrease) in notes payable (607,703) 529,559
------------ ------------
Net cash (used in) provided by operating
activities (2,068,610) 1,808,822
------------ ------------
INVESTING ACTIVITIES
Option agreement payments (930,500) (2,878,000)
Shares issued fo Myfreightworld carrier
management
Cancelled shares to prior management 0
Prior period adjustment for acquisition of
licensing agmt 0
------------ ------------
Net cash (used in) provided by investing
activities (930,500) (2,878,000)
------------ ------------
FINANCING ACTIVITIES
Preferred B shares issued for cash 1,150,000 1,023,000
Preferred C shares issued for cash 1,851,967 0
------------ ------------
Net cash (used in) provided by financing
activities 3,001,967 1,023,000
------------ ------------
INCREASE IN CASH 2,857 (46,178)
CASH, BEGINNING OF PERIOD 149,729 46,178
------------ ------------
CASH, END OF PERIOD $ 152,586 $ 0
============ ============
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND FINANCING ACTIVITIES
Preferred A Shares issued for Carrier Management $ 0 $ 2,002,890
Common shares for All Modes Transportation $ 0 $ 1,150,719
Preferred Shares for Informed Logistics
Technologies, LLC $ 4,362,522 $ 0
See accompanying notes to these unaudited consolidated financial
statements.
MYFREIGHTWORLD TECHNOLOGIES, INC
Notes to Consolidated Financial Statements
For the nine months ended September 30, 2011 and 2010
Note 1. The Company and its significant
Accounting Policies
Myfreightworld Technologies, Inc. (Company) is a Nevada
corporation having originally incorporated as Cable Advertising
System, Inc. followed by several other name changes and is publicly
traded on the OTC Pink Sheets under the symbol MYFT. The most
recent name change was from Anything Brands Online, Inc on February
16, 2010. Since its inception, it has never been a shell
company.
On March 31, 2009, the Company purchased the Contract Management
Division (CMD) of myFreightWorld.com, LLC for 1,000,000 preferred
series B shares that can be converted into 10,000,000 common shares
and a note for $2,000,000. See Note 6, "Related Party
Transactions."
In March 2010, the Company further amended the agreement to
purchase CMD. The amendment resulted in the issuance to designees
of the Company 3,900,000 shares of Class A Preferred and 20,112,909
shares of Class B Preferred. Further amendment allows any
combination of Class A and Class B Preferred shares up to a total
of 24,012,909 shares.
On September 1, 2010, the Company purchased All Modes Transport
Limited (All Modes), a Kansas Corporation, in exchange for 25
million common shares of the Company and an estimated $300,000,
dependent on the earnings of All Modes, to be paid in quarterly
installments over the next thirteen months.
On July 20, 2011, the company acquired Informed Logistics
Technologies, LLC (ILT) and all of their issued and outstanding
shares in the company. ILT is the founding information technology
company that is the basis of all of the company's operating systems
and software innovations. ILT has been fully consolidated into the
company's financial statements and has valued its software
technology at its estimated fair value. The transaction required
MYFT to issue shares equivalent to 32% of the company. This
transaction required the company to increase the total authorized
shares.
The unaudited financial statements included herein were prepared
from the records of the Company and adjusted for comparative
purposes. These financial statements reflect all adjustments, which
are, in the opinion of management, necessary to provide the results
of operations and financial position for the interim periods ended
September 30, 2011 and 2010. Significant adjustments may be
required upon the financial statements being audited to be in
conformity with Generally Accepted Accounting Principles.
Principles of Consolidation
The Company's financial statements are consolidated with
Myfreightworld Carrier Management, Inc. (MYCM), a Nevada
corporation, since January 1, 2009 that include the CMD acquired
from Myfreightworld.com, LLC. Effective September 1, 2010, the
Company's financial statements are consolidated with All Modes and
effective July 20, 2011 the Company's financial statements are
consolidated with Informed Logistics Technologies, LLC.
The financial statements of Anything Green Online, Inc. are not
consolidated in the financial statements because they are
immaterial to that of MYCM. Any activity has been eliminated from
historical financial statements for comparative purposes.
Use of Estimates
The unaudited financial statements include estimates of value
when an objective source for valuation was not available.
Cash & Cash Equivalents
The company's policy is to consider cash and cash equivalents to
consist of checking accounts, money market accounts or certificates
of deposits having maturity dates of 180 days or less.
Financial Instruments
Financial instruments consist primarily of cash and obligations
under accounts payable and accrued expenses. The carrying value of
cash, accounts payable and accrued expenses approximate fair value
because of the short-term maturity of those instruments.
Note 2. Investments
On September 29, 2008, which was later modified on October 27,
2008, the Company entered into a strategic cross marketing and
equity exchange agreement with Mediatechnics Corporation whose
stock trades over the counter under the symbol MEDT. The agreement
expired on October 26, 2010. The transaction resulted in the
company receiving 10,000,000 common shares of MEDT. The Company
also issued 20,000,000 of its common shares to MEDT under the
agreement. The Company has recorded a carrying value for the MEDT
shares at $100,000.
On June 7, 2010 the Company sold ABOL, Inc. to Anything
Technologies Media, Inc., "EXMT," in a share for share exchange.
The Company received 30,000,000 shares of EXMT and declared a
dividend for shareholders of record at May 6, 2010 and estimates
its dividend to shareholders to total around 25,000,000 shares of
EXMT. The Company's cost basis in ABOL, Inc. was approximately
$900,000 or $.03 per share which is the value attributed to the
EXMT shares received. The carrying value of the investment in EXMT
is represented by the number of shares held by the Company valued
at $.03 per share. The carrying value was reduced to $324,000 as a
result of a dividend.
Note 3. Intellectual Property
The company owns operating systems and software innovations
through its wholly owned subsidiary Informed Logistics
Technologies, LLC that was acquired on July 20, 2011 and
capitalized at its estimated fair value of $6,000,000. The
transaction required MYFT to issue shares equivalent to 32% of the
company. This transaction required the company to increase the
total authorized shares.
The software and systems will be amortized over 15 years and
improvements will be capitalized and amortized over their
respective useful lives. The net value of the intellectual property
was calculated as follows:
Software & Systems Balance
Balance at June 30, 2011 $ 0
Acquired July 20, 2011 6,000,000
-----------
Total at September 30, 2011 6,000,000
-----------
Accumulated Amortization
Balance at June 30, 2011 0
Depreciation for quarter ended Sept 30, 2011 76,667
-----------
Total at September 30, 2011 76,667
-----------
-----------
Net Software & Systems $ 5,923,333
===========
Note 4. Notes Payable
On April 4, 2011, the Company paid off its $2,000,000 note to
Myfreightworld.com, LLC that was due in a balloon payment by March
31, 2011 by issuing 9,659,259 Preferred Series B shares.
The company has a line of credit with a financial institution
for $2,455,000 that is secured by all of the accounts receivable
and other assets of the Company. The outstanding balance on the
line at September 30, 2011 was $1,824,053.
At September 30, 2011, the company also has a bridge loan
outstanding for $455,590.
Note 5. Common Stock
The company has an authorized capitalization of 700,000,000
shares of common stock with a par value of $.001. At September 30,
2011 there were 304,891,586 shares issued and outstanding.
During the first quarter of 2011, the company issued 700,000
restricted common shares valued at $14,000 for financial consulting
services performed during the fourth quarter of 2010. In addition
there were 4,000,000 common shares issued as a result of the
conversion of 400,000 shares of Preferred Series A stock.
During the second quarter of 2011, 4,000,000 shares of Preferred
Series A stock were converted into 40,000,000 common shares and
1,200,000 shares of Preferred Series B stock were converted into
12,000,000 common shares.
During the third quarter of 2011, the company issued 700,000
restricted common shares valued at $14,000 for financial consulting
services performed during the first quarter of the year. The
company also issued 5,000,000 restricted common shares for business
and marketing consulting valued at $50,000. Also during the third
quarter of 2011, 500,000 shares of Preferred Series A stock were
converted into 5,000,000 common shares and 1,000,000 shares of
Preferred Series B stock were converted into 10,000,000 common
shares.
During the third quarter the Board authorized an increase in the
number of authorized shares of common stock and preferred stock
from 700,000,000 shares and 40,000,000 shares, respectively, to
2,000,000,000 shares and 70,000,000 shares respectively. The
authorization requires a majority vote of the existing
shareholders. The company believes it has obtained the necessary
votes required for authorization and will have the vote finalized
in the coming weeks.
Note 6. Preferred Stock
The company has an authorized capitalization of 40,000,000
shares of preferred stock with a par value of $.001. There are
16,000,000 authorized shares of Class A Preferred Stock and
24,000,000 authorized shares of Class B Preferred Stock.
Each share issued of Class A Preferred Stock is convertible at
the will of the Holder into 10 common shares of the Company at any
time prior to December 31, 2015. Each share of Class A Preferred
Stock is entitled to vote 10 common shares on all matters brought
before shareholders and is entitled to receive dividends of the
company in the same ratio as its conversion feature.
The Class B Preferred Stock has the same rights and privileges
as the Class A Preferred Stock except that it is not entitled to
participate in stock dividends from spinoff transactions unless
specific amendments are made to the designations.
During the first quarter of 2011, the Company set up a Class C
Preferred Stock in order to raise $1.875 million to formally
acquire the Intellectual Property that drives CMD. The Company is
in the process of documenting the approval of over 50% of the
Preferred Series A and B stockholders to authorize the new Series.
It is anticipated that the new Series C will be junior to the
Preferred A and B in liquidation preference and be convertible into
common stock at a ratio of 20 common shares for 1 share of Series C
Preferred with voting rights equal to its conversion ratio.
During the first quarter of 2011, the Company issued 1,000,000
shares of Preferred Series B stock and 2,299,337 shares of
Preferred Series C stock to accredited investors for $659,867 in
cash.
During the second quarter of 2011, the Company issued 4,085,000
shares of Preferred Series C stock to accredited investors for
$817,600 in cash. Also 4,000,000 Preferred A shares and 1,200,000
shares of Preferred B were converted to common shares.
During the third quarter of 2011, the Company issued 12,135,336
shares of Preferred Series C stock to accredited investors for
$1,213,534 in cash. Also 500,000 Preferred A shares and 1,000,000
shares of Preferred B were converted to common shares.
At September 30, 2011, the following Preferred shares were
outstanding:
Shares Shares
Authorized Outstanding
------------ -----------
Preferred Series A shares 16,000,000 4,680,947
Preferred Series B shares 24,000,000 23,000,000
Preferred Series C shares unauthorized 18,519,673
During the third quarter the Board authorized an increase in the
number of authorized shares of common stock and preferred stock
from 700,000,000 shares and 40,000,000 shares, respectively, to
2,000,000,000 shares and 70,000,000 shares respectively. The
authorization requires a majority vote of the existing
shareholders. The company believes it has obtained the necessary
votes required for authorization and will have the vote finalized
in the coming weeks.
Note 7. Related Party Transactions
During January of 2009, the Company, entered into a Letter of
Intent (LOI) to acquire the Client Management Department division
(CMD) of myFreightWorld.com, LLC domiciled in Kansas and on March
31, 2009 the Company completed the acquisition. At the time of the
closing, the CEO of the Company, Michael Head, owned approximately
12% of myFreightWorld.com, LLC.
Prior to the closing, myFreightWorld.com, LLC transferred its
CMD to a Nevada corporation named MyFreightWorld Carrier Management
Inc. (MFCM). Additionally, a group of accredited investors agreed
to invest through subscription agreements an additional $2 million
cash. The Company received all of MFCM's outstanding voting stock
in consideration for agreeing to issue 1,000,000 of its newly
designated preferred class B shares and a note for $2 million to
myFreightWorld.com, LLC. On April 4, 2011, the Company paid off its
$2,000,000 note to Myfreightworld.com, LLC that was due in a
balloon payment by March 31, 2011 by issuing 9,659,259 Preferred
Series B shares.
On July 20, 2011, the company acquired Informed Logistics
Technologies, LLC (ILT) and all of their issued and outstanding
shares in the company. ILT is the founding information technology
company that is the basis of all of the company's operating systems
and software innovations. The transaction required MYFT to issue
shares equivalent to 32% of the company. This transaction required
the company to increase the total authorized shares. ILT has been
fully consolidated into the Company's financial statements and has
valued its software technology at its estimated fair value.
Contact: myFreightWorld Investor Relations Email Contact
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