Large accelerated filer | o | Accelerated filer | o |
Non-accelerated filer | o | Smaller reporting company | þ |
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CONDENSED CONSOLIDATED BALANCE SHEETS
|
|||||
(UNAUDITED)
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March 31,
2013
|
June 30,
2012
|
|||||||
ASSETS
|
||||||||
CURRENT ASSETS:
|
||||||||
Cash & cash equivalents
|
$ | 8,246 | $ | 102,022 | ||||
Accounts receivable, net allowance for doubtful accounts of $25,926 and $12,486, respectively
|
86,753 | 264,309 | ||||||
Due from related party
|
11,895 | 10,084 | ||||||
Inventory
|
118,531 | 37,442 | ||||||
Assets of disposed subsidiary
|
- | 12,411 | ||||||
Total current assets
|
225,425 | 426,268 | ||||||
Payroll advance
|
34,165 | - | ||||||
Security deposits
|
11,222 | 11,222 | ||||||
Advance to supplier
|
2,000 | - | ||||||
Property and equipment, net
|
14,966 | 6,799 | ||||||
Total assets
|
$ | 287,778 | $ | 444,289 | ||||
LIABILITIES AND STOCKHOLDERS' DEFICIT
|
||||||||
CURRENT LIABILITIES:
|
||||||||
Accounts payable and accrued expenses
|
$ | 331,395 | $ | 452,637 | ||||
Accounts payable - related parties
|
- | 77,062 | ||||||
Advance from customers
|
9,552 | 9,250 | ||||||
Notes payable - related parties
|
28,000 | 150,000 | ||||||
Liabilities of disposed subsidiary
|
- | 3,715 | ||||||
Total current liabilities
|
368,947 | 692,664 | ||||||
NON-CURRENT LIABILITIES:
|
||||||||
Long term notes payable of disposed subsidiary
|
- | 20,000 | ||||||
Convertible debenture
|
204,700 | - | ||||||
Related party convertible debenture, net
|
- | 88,672 | ||||||
Total long term liabilities
|
204,700 | 108,672 | ||||||
Total liabilities
|
573,647 | 801,336 | ||||||
STOCKHOLDERS' DEFICIT
|
||||||||
Preferred stock, 50,000,000 authorized par $0.001
|
- | - | ||||||
Series A: 206,186 shares issued and outstanding
|
206 | 206 | ||||||
Series B: 9,498,409 and 273,333 shares issued and outstanding at March 31, 2013 and June 30, 2012, respectively
|
9,498 | 273 | ||||||
Common stock, $0.001 par value; 900,000,000 shares authorized; 240,284,270 and 235,617,610 shares issued and outstanding at March 31, 2013 and June 30, 2012, respectively
|
240,285 | 235,618 | ||||||
Additional paid-in capital
|
4,078,930 | 3,805,357 | ||||||
Accumulated deficit
|
(4,614,789 | ) | (4,668,865 | ) | ||||
Total
|
(285,869 | ) | (627,411 | ) | ||||
Non-controlling interest
|
- | 270,364 | ||||||
Total deficit
|
(285,869 | ) | (357,047 | ) | ||||
Total liabilities and deficit
|
$ | 287,778 | $ | 444,289 |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
||||||||||
(UNAUDITED)
|
For the Three Month Periods Ended
|
For The Nine Month Periods Ended
|
|||||||||||||||
March 31,
|
March 31,
|
|||||||||||||||
2013
|
2012
|
2013
|
2012
|
|||||||||||||
Net revenue
|
$ | 436,797 | $ | 635,131 | $ | 1,471,364 | $ | 1,366,491 | ||||||||
Cost of revenue
|
250,197 | 340,594 | 832,941 | 774,085 | ||||||||||||
Gross profit
|
186,600 | 294,537 | 638,423 | 592,406 | ||||||||||||
Operating expense
|
||||||||||||||||
General & administrative expense
|
190,971 | 168,559 | 789,110 | 477,496 | ||||||||||||
Total operating expense
|
190,971 | 168,559 | 789,110 | 477,496 | ||||||||||||
Other income (expense)
|
||||||||||||||||
Other income
|
247 | - | 751 | 40,527 | ||||||||||||
Interest expense
|
(2,875 | ) | (10,974 | ) | (12,041 | ) | (29,740 | ) | ||||||||
Beneficial conversion feature expense
|
- | (12,449 | ) | (9,439 | ) | (37,620 | ) | |||||||||
Total other income (expense)
|
(2,628 | ) | (23,423 | ) | (20,729 | ) | (26,833 | ) | ||||||||
Income (loss) from continuing operations
|
(6,998 | ) | 102,555 | (171,416 | ) | 88,077 | ||||||||||
Gain on disposal of subsidiary
|
194,917 | - | 194,917 | - | ||||||||||||
Income before non-controlling interest and income taxes
|
187,919 | 102,555 | 23,501 | 88,077 | ||||||||||||
Provision of income taxes
|
- | 800 | 800 | 800 | ||||||||||||
Non-controlling interest
|
- | 62,243 | (31,375 | ) | 61,989 | |||||||||||
Net income attributable to Concierge Technologies
|
$ | 187,919 | $ | 39,512 | $ | 54,076 | $ | 25,288 | ||||||||
Weighted average shares of common stock
|
||||||||||||||||
Basic & Diluted
|
235,720,174 | 233,667,610 | 235,928,721 | 233,667,610 | ||||||||||||
Net earnings (loss) per share
|
||||||||||||||||
Basic & Diluted
|
$ | 0.00 | $ | 0.00 | $ | 0.00 | $ | (0.00 | ) |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
||||||
FOR THE NINE-MONTH PERIODS ENDED MARCH 31, 2013 AND 2012
|
||||||
(UNAUDITED)
|
For the Nine-Month Periods Ended
March 31,
|
||||||||
2013
|
2012
|
|||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
||||||||
Net Income
|
$ | 54,076 | $ | 25,288 | ||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities
|
||||||||
Gain on disposal of subsidiary
|
(194,917 | ) | - | |||||
Non-controlling interest
|
(31,375 | ) | 61,989 | |||||
Depreciation
|
2,926 | 690 | ||||||
Allowance for bad debt
|
13,440 | - | ||||||
Beneficial conversion feature expense
|
9,439 | 37,620 | ||||||
Amortization of debt issuance cost
|
1,888 | 7,524 | ||||||
(Increase) decrease in current assets:
|
||||||||
Accounts receivable
|
150,676 | (90,248 | ) | |||||
Advance to supplier
|
(2,000 | ) | - | |||||
Inventory
|
(81,089 | ) | 104,609 | |||||
Increase (decrease) in current liabilities:
|
||||||||
Accounts payable & accrued expenses
|
(32,379 | ) | (141,668 | ) | ||||
Accounts payable - related parties
|
(1,612 | ) | 2,586 | |||||
Advances from customers
|
302 | 10,900 | ||||||
Net cash provided by (used in) operating activities
|
(110,626 | ) | 19,289 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
||||||||
Purchase of equipment
|
(11,093 | ) | (5,104 | ) | ||||
Payroll advance
|
(34,165 | ) | - | |||||
Due from related party
|
(1,811 | ) | 1,065 | |||||
Net cash used in investing activities
|
(47,069 | ) | (4,039 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
||||||||
Repayments to related parties
|
- | (20,000 | ) | |||||
Cash eliminated upon sales of Planet Halo
|
(5,992 | ) | (85 | ) | ||||
Proceeds from related party loans
|
57,500 | - | ||||||
Net cash provided by (used in) financing activities
|
51,508 | (20,085 | ) | |||||
NET DECREASE IN CASH & CASH EQUIVALENTS
|
(106,187 | ) | (4,834 | ) | ||||
CASH & CASH EQUIVALENTS, BEGINNING BALANCE
|
114,433 | 53,704 | ||||||
CASH & CASH EQUIVALENTS, ENDING BALANCE
|
$ | 8,246 | $ | 48,870 | ||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
|
||||||||
Cash paid during the period for:
|
||||||||
Interest paid
|
- | - | ||||||
Income taxes
|
- | - | ||||||
$ | - | $ | - | |||||
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND FINANCING ACTIVITIES:
|
||||||||
Series B preferred shares issued against convertible note
|
$ | 112,000 | $ | - | ||||
Forgiveness of accounts payable - related parties
|
$ | 75,450 | $ | - | ||||
Consolidation of PF notes into convertible debenture
|
$ | 204,700 | $ | - | ||||
Buyout of non-controlling interest in Wireless Village
|
$ | 2,400,000 | $ | - | ||||
Sale of Planet Halo shares to shareholder
|
$ | 264,382 | ||||||
Conversion of Series B preferred stock shares to common stock shares
|
$ | 4,667 | $ | - |
NOTE 1.
|
ORGANIZATION AND DESCRIPTION OF BUSINESS
|
NOTE 2.
|
ACCOUNTING POLICIES
|
NOTE 3.
|
GOING CONCERN
|
NOTE 4.
|
PROPERTY AND EQUIPMENT
|
March 31,
2013
|
June 30,
2012
|
|||||||
Furniture & Office Equipment
|
$ | 13,698 | $ | 26,852 | ||||
Network Hardware & Software
|
28,428 | 55,254 | ||||||
Site Installation Materials
|
-0- | 1,813 | ||||||
Total Fixed Assets
|
42,126 | 83,919 | ||||||
Accumulated Depreciation
|
(27,160 | ) | (77,120 | ) | ||||
Total Fixed Assets, Net
|
$ | 14,966 | $ | 6,799 |
NOTE 5.
|
RELATED PARTY TRANSACTIONS
|
March 31,
2013
|
June 30,
2012
|
|||||||
Notes payable to shareholder, interest rate of 8%, unsecured and payable on December 31, 2012
|
$ | - | $ | 35,000 | ||||
Notes payable to director/shareholder, noninterest-bearing, unsecured and payable on demand
|
8,500 | 8,500 | ||||||
Notes payable to shareholder, interest rate of 10%, unsecured and payable on July 31, 2004 (past due)
|
5,000 | 5,000 | ||||||
Notes payable to shareholder, interest rate of 10%, unsecured and payable on December 31, 2012
|
- | 28,000 | ||||||
Notes payable to shareholder, interest rate of 8%, unsecured and payable on December 31, 2012
|
- | 14,000 | ||||||
Notes payable to director/shareholder, interest rate of 8%, unsecured and payable on December 31, 2012
|
3,500 | 3,500 | ||||||
Notes payable to shareholder, interest rate of 8%, unsecured and payable on December 31, 2012
|
- | 20,000 | ||||||
Notes payable to director/shareholder, interest rate of 8%, unsecured and payable on December 31, 2012
|
5,000 | 5,000 | ||||||
Notes payable to director/shareholder, interest rate of 8%, unsecured and payable on December 31, 2012
|
5,000 | 5,000 | ||||||
Notes payable to director/shareholder, interest rate of 6%, unsecured and payable on December 31, 2012
|
1,000 | 1,000 | ||||||
Notes payable to shareholder, interest rate of 8%, unsecured and payable on December 31, 2012
|
- | 15,000 | ||||||
Notes payable to shareholder, interest rate of 6%, unsecured and payable on December 31, 2012
|
- | 10,000 | ||||||
$ | 28,000 | $ | 150,000 |
March 31,
2013
|
June 30,
2012
|
|||||||
Notes payable to shareholder, interest rate of 3%, unsecured and payable on April 1, 2014
|
$ | - | $ | 20,000 | ||||
$ | -0- | $ | 20,000 |
NOTE 6.
|
ACCOUNTS PAYABLE AND ACCRUED EXPENSES
|
March 31,
2013
|
June 30,
2012
|
|||||||
Accounts payable
|
$ | 120,689 | $ | 106,568 | ||||
Tax reserve
|
50,729 | 94,595 | ||||||
Payroll tax liability
|
4,378 | - | ||||||
Accrued judgment
|
135,000 | 135,000 | ||||||
Accrued interest
|
17,099 | 91,973 | ||||||
Auditing
|
3,500 | 24,500 | ||||||
Total
|
$ | 331,395 | $ | 452,637 |
NOTE 7.
|
EQUITY TRANSACTIONS
|
NOTE 8.
|
INCOME TAXES
|
NOTE 9.
|
COMMITMENTS AND CONTINGENCIES
|
NOTE 10.
|
DISPOSAL
|
Exhibit | Item | |
2 | - | Stock Purchase Agreement of March 6, 2000 between Starfest, Inc. and MAS Capital, Inc.* |
2 | - | Stock Purchase Agreement among Concierge Technologies, Inc., Wireless Village, Inc., Bill Robb and Daniel Britt.++ |
3.1 | - | Certificate of Amendment of Articles of Incorporation of Starfest, Inc. and its earlier articles of incorporation.* |
3.2 | - | Bylaws of Concierge, Inc., which became the Bylaws of Concierge Technologies upon its merger with Starfest, Inc. on March 20, 2002.* |
3.5 | - | Articles of Merger of Starfest, Inc. and Concierge, Inc. filed with the Secretary of State of Nevada on March 1, 2002.** |
3.6 | - | Agreement of Merger between Starfest, Inc. and Concierge, Inc. filed with the Secretary of State of California on March 20, 2002.** |
3.7 | - | Articles of Incorporation of Concierge Technologies, Inc. filed with the Secretary of State of Nevada on April 20, 2005.+ |
3.8 | - | Articles of Merger between Concierge Technologies, Inc., a California corporation, and Concierge Technologies, Inc., a Nevada corporation, filed with the Secretary of State of Nevada on March 2, 2006 and the Secretary of State of California on October 5, 2006.+ |
3.9 | - | Amendment to Articles of Incorporation as filed with the Definitive Information Schedule 14c filed with the SEC on December 3, 2010 and with the Nevada Secretary of State on December 23, 2010. |
10.1 | - | Agreement of Merger between Starfest, Inc. and Concierge, Inc.* |
14 | - | Code of Ethics for CEO and Senior Financial Officers.*** |
31.1 | - | Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
31.2 | - | Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
32.1 | - | Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
32.2 | - | Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
CONCIERGE TECHNOLOGIES, INC. | |||
Dated: May 24, 2013
|
By:
|
/s/ David W. Neibert | |
David W. Neibert, Chief Executive Officer |