THE FOLLOWING DISCUSSION SHOULD BE READ IN CONJUNCTION WITH OUR UNAUDITED FINANCIAL STATEMENT SAND NOTES THERETO INCLUDED HEREIN. IN CONNECTION WITH, AND
-------------------------------------------------------------------------------- 8
--------------------------------------------------------------------------------
BECAUSE WE DESIRE TO TAKE ADVANTAGE OF, THE "SAFE HARBOR" PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995, WE CAUTION READERS REGARDING CERTAIN FORWARD LOOKING STATEMENTS IN THE FLOWING DISCUSSION AND ELSEWHERE IN THE THIS REPORT AND IN ANY OTHER STATEMENT MADE BY, OR AN BEHALF, WHETHER OR NOT IN FUTURE FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION, FORWARD-LOOKING STATEMENTS ARE STATEMENT NOT BASED ON HISTORICAL INFORMATION AND WHICH RELATE TO FUTURE OPERATIONS, STRATEGIES, FINANCIAL RESULTS OR OTHER DEVELOPMENTS. FORWARD-LOOKING STATEMENTS ARE NECESSARILY BASED UPON ESTIMATES AND ASSUMPTIONS THAT ARE INHERENTLY SUBJECT TO SIGNIFICANT BUSINESS, ECONOMIC AND COMPETITIVE UNCERTAINTIES, MANY OF WHICH ARE BEYOND OUR CONTROL AND MANY OF WHICH, WITH RESPECT TO FUTURE BUSINESS DECISIONS, ARE SUBJECT TO CHANGE, THESE UNCERTAINTIES AND CONTINGENCIES CAN AFFECT ACTUAL RESULTS AND COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FORM THOSE EXPRESSED IN ANY FORWARD-LOOKING STATEMENTS AND COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE EXPRESSED IN ANY FORWARD LOOKING STATEMENTS MADE BY, OR ON OUR BEHALF, WE DIS TO UPDATE FORWARD-LOOKING STATEMENTS.
PLAN OF OPERATION
The Company liquidated most of its inventory as scrap metal due to the fact that
cash resources available were not enough to purchase new inventory. Without
fresh new inventory the sales of auxiliary parts, that were in hand, was
negligible. This is due to the fact that the prices of end-of-life and wrecked
automobiles has increased to more than double the previous prices. Accordingly,
keeping in view the present market conditions the management felt that it would
take a pause in building used auto parts' inventory until and unless a sum of
Progress has been reported in Note 6 under "subsequent events" as above.
The Company through its subsidiaries, namely,
Regarding scrap metal processing:
A firm contract with the machinery suppliers will be executed as soon as financing is arranged.
City Autos, Corp. - the subsidiary of the Company has received the business
license to operate as used car dealership which encompasses the business of auto
leasing and renting. Application to the DMV in the
RESULTS OF OPERATIONS
The existing cash resources were thus diverted to trading activities in Scrap
Metal business. Five containers have been exported since
The Company did recognize revenue for a sum of
--------------------------------------------------------------------------------
9
--------------------------------------------------------------------------------
of revenues during the six month ended
During the six months ended
During the six-month ended
Management has opted to provide for the depreciation of equipment, trucks and building at the end of the year instead of providing for it on quarterly basis.
LIQUIDITY
© Edgar Online, source