If you think I’m hot you should see this stock! OBJE
Obscene Jeans has a going concern letter in its latest 10-Q.
For the six months ended February 28, 2011, the Company had a net loss of $168,327 and negative cash flow from operations of $87,510. As of February 28, 2011, the Company has negative working capital of $77,399. The Company has not emerged from the development stage.
These factors raise a substantial doubt about the Company’s ability to continue as a going concern. The accompanying financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classifications of liabilities that may result from the possible inability of the Company to continue as a going concern.
The Company does not have the resources at this time to repay its credit and debt obligations, make any payments in the form of dividends to its shareholders or fully implement its business plan. Without additional capital, the Company will not be able to remain in business.
Obscene Jeans had $33,000 of cash on its balance sheet as of February 28.
The company describes its growth plan this way:
Instead of slowly growing our product lines and expanding into other associated industries (footwear, cosmetics, jewelry, household items, etc.) and international markets, we are aggressively pursuing an acquisition campaign to quickly propel us to establish a foothold in high-revenue product sales, branding and distribution.
Yahoo! Finance lists the company’s market cap at $36.4 million. Its 3-month average volume is 3,336 shares a day. That’s not much capital for “aggressively pursuing an acquisition campaign.” And, to make the plans even more difficult, Obscene Jeans may not be around in a year. “Without additional capital, the Company will not be able to remain in business.” Its ad campaign is not likely to change that.
Editor’s note: This company runs ads on 247wallst.com through Google AdWords.
Douglas A. McIntyre
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