|
QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
|
TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE EXCHANGE ACT OF
1934
|
Delaware
|
061034587
|
(State
or other jurisdiction of
incorporation
or organization)
|
(I.R.S.
Employer
Identification
Number)
|
Large
accelerated filer
|
Accelerated
filer
|
Non-accelerated
filer
|
Smaller
reporting company x
|
Page No.
|
||
PART
I - FINANCIAL INFORMATION
|
||
Item
1. Financial Statements
|
F-1
|
|
Condensed
Consolidated Balance Sheets - June 30, 2009 (Unaudited) and December 31,
2008
|
F-1
|
|
Condensed
Consolidated Statements of Operations (Unaudited) -
|
||
Three
and Six Months Ended June 30, 2009 and 2008
|
F-2
|
|
Condensed
Consolidated Statements of Cash Flows (Unaudited) -
|
||
Six
Months Ended June 30, 2009 and 2008
|
F-3
|
|
Notes
to Condensed Consolidated Financial Statements
|
F-4
|
|
Item
2. Management’s Discussion and Analysis of Financial Condition and Results
of Operations
|
4
|
|
Item
3. Quantitative and Qualitative Disclosures About Market
Risk
|
8
|
|
Item
4T. Controls and Procedures
|
9
|
|
PART
II - OTHER INFORMATION
|
||
Item
1. Legal Proceedings
|
11
|
|
Item
2. Unregistered Sales of Equity Securities and Use of
Proceeds
|
11
|
|
Item
3. Defaults Upon Senior Securities
|
11
|
|
Item
4. Submission of Matters to a Vote of Security
Holders
|
11
|
|
Item
5. Other Information
|
11
|
|
Item
6. Exhibits
|
11
|
|
SIGNATURES
|
12
|
(Unaudited)
|
||||||||
June 30,
|
December 31,
|
|||||||
2009
|
2008
|
|||||||
ASSETS
|
||||||||
Current
Assets
|
||||||||
Cash
|
$ | - | $ | 31,889 | ||||
Contract
receivables, net of allowance of $0 and $24,000 for June 30, 2009 and
December 31, 2008, respectively
|
11,906 | 237,787 | ||||||
Inventories
|
422,856 | 564,022 | ||||||
Costs
and estimated earnings in excess of billings on uncompleted
contracts
|
60,790 | 416,664 | ||||||
Deferred
financing costs
|
283,433 | 252,305 | ||||||
Prepaid
expenses and other current assets
|
160,182 | 168,668 | ||||||
Total
current assets
|
939,167 | 1,671,335 | ||||||
Property
and Equipment, net
|
152,225 | 186,906 | ||||||
Deferred
Financing Costs, net
|
113,862 | 233,702 | ||||||
Total
Assets
|
$ | 1,205,254 | $ | 2,091,943 | ||||
LIABILITIES
AND STOCKHOLDERS' DEFICIT
|
||||||||
Current
Liabilities
|
||||||||
Bank
overdraft
|
$ | 44,553 | $ | 15,329 | ||||
Accounts
payable and accrued liabilities
|
1,643,751 | 1,417,464 | ||||||
Dividends
payable
|
500,550 | 459,275 | ||||||
Billings
in excess of costs and estimated earnings on uncompleted
contracts
|
84,402 | 1,388,348 | ||||||
Capital
lease obligation, current portion
|
24,044 | 27,874 | ||||||
Derivative
liability
|
4,080,953 | 1,975,298 | ||||||
CAMOFI
Convertible note payable, net of discount of $1,423,780 at June 30, 2009
and $2,089,443 at December 31, 2008, respectively
|
1,403,501 | 737,838 | ||||||
CAMHZN
Convertible note payable, net of discount of $239,535 at June 30, 2009 and
$350,090 at December 31, 2008, respectively
|
510,465 | 399,910 | ||||||
CAMOFI
Convertible Note, net of discount of $96,039
|
605,161 | - | ||||||
CAMHZN
Convertible Note, net of discount of $23,896
|
149,904 | - | ||||||
Total
current liabilities
|
9,047,284 | 6,421,336 | ||||||
Long
Term Liabilities
|
||||||||
Capital
lease obligation, long term portion
|
- | 9,804 | ||||||
Total
liabilities
|
9,047,284 | 6,431,140 | ||||||
Commitments
and Contingencies
|
||||||||
Stockholders'
Deficit
|
||||||||
Cumulative,
convertible, Series B preferred stock, $1 par value, 15,000,000 shares
authorized, no shares issued and outstanding (liquidation preference of
$25 per share)
|
- | - | ||||||
Cumulative,
convertible, Series C preferred stock, $1 par value, 75,000 shares
authorized, 26,880 shares issued and outstanding (liquidation preference
of $672,000)
|
26,880 | 26,880 | ||||||
Cumulative,
convertible, Series D preferred stock, $25 par value, 75,000 shares
authorized, 11,640 shares issued and outstanding (liquidation preference
of $291,000)
|
291,000 | 291,000 | ||||||
Common
stock, $0.10 par value, 50,000,000 shares authorized; 15,344,654 shares
issued and outstanding at June 30, 2009 and December 31,
2008
|
1,534,466 | 1,534,466 | ||||||
Notes
receivable from stockholders
|
(564,928 | ) | (564,928 | ) | ||||
Deferred
equity compensation
|
(64,167 | ) | (101,667 | ) | ||||
Additional
paid-in capital
|
7,390,021 | 7,355,007 | ||||||
Accumulated
deficit
|
(16,455,302 | ) | (12,879,955 | ) | ||||
Total
stockholders' deficit
|
(7,842,030 | ) | (4,339,197 | ) | ||||
Total
Liabilities and Stockholders' deficit
|
$ | 1,205,254 | $ | 2,091,943 |
For the Three Months Ended June 30,
|
For the Six Months Ended June 30,
|
|||||||||||||||
As Restated
|
As Restated
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
CONTRACT
REVENUES
|
$ | 1,359,630 | $ | 1,434,676 | $ | 2,414,332 | $ | 2,961,278 | ||||||||
COST
OF SALES
|
1,193,730 | 1,363,614 | 2,012,623 | 2,672,093 | ||||||||||||
GROSS
PROFIT
|
165,900 | 71,062 | 401,709 | 289,185 | ||||||||||||
OPERATING
EXPENSES
|
||||||||||||||||
Consulting
and other compensation
|
77,158 | 73,998 | 139,773 | 345,382 | ||||||||||||
Salaries
and related
|
83,409 | 74,123 | 236,496 | 127,619 | ||||||||||||
Selling,
general and administrative
|
135,967 | 278,441 | 367,988 | 716,470 | ||||||||||||
TOTAL
OPERATING EXPENSES
|
296,534 | 426,562 | 744,257 | 1,189,471 | ||||||||||||
OPERATING
LOSS
|
(130,634 | ) | (355,500 | ) | (342,548 | ) | (900,286 | ) | ||||||||
OTHER
INCOME (EXPENSES)
|
||||||||||||||||
Gain
on writeoff of accounts payable
|
- | 3,577 | 5,681 | 60,205 | ||||||||||||
(Loss)
/ gain on valuation of derivative liabilities
|
225,075 | 1,287,654 | (1,575,903 | ) | 2,588,416 | |||||||||||
Interest
expense
|
(952,461 | ) | (497,382 | ) | (1,620,856 | ) | (984,151 | ) | ||||||||
TOTAL
OTHER INCOME (EXPENSES)
|
(727,386 | ) | 793,849 | (3,191,078 | ) | 1,664,470 | ||||||||||
INCOME
(LOSS) BEFORE PROVISION FOR INCOME TAXES
|
(858,020 | ) | 438,349 | (3,533,626 | ) | 764,184 | ||||||||||
PROVISION
FOR INCOME TAXES
|
- | - | - | - | ||||||||||||
NET
INCOME ( LOSS)
|
$ | (858,020 | ) | $ | 438,349 | $ | (3,533,626 | ) | $ | 764,184 | ||||||
Preferred
Stock Dividends
|
$ | (41,275 | ) | $ | (41,275 | ) | $ | (41,275 | ) | $ | (41,275 | ) | ||||
NET
INCOME (LOSS) APPLICABLE TO COMMON STOCKHOLDERS
|
$ | (899,295 | ) | $ | 397,074 | $ | (3,574,901 | ) | $ | 722,909 | ||||||
Basic
net income (loss) available to common stockholders per common
share
|
$ | (0.06 | ) | $ | 0.03 | $ | (0.23 | ) | $ | 0.05 | ||||||
Diluted
net income (loss) available to common stockholders per common
share
|
$ | (0.06 | ) | 0.01 | (0.23 | ) | $ | 0.02 | ||||||||
Basic
weighted average common shares outstanding
|
15,344,654 | 15,344,656 | 15,344,654 | 15,344,656 | ||||||||||||
Diluted
weighted average common shares outstanding
|
15,344,654 | 45,450,838 | 15,344,654 | 45,450,838 |
As Restated
|
||||||||
2009
|
2008
|
|||||||
Cash
flows from operating activities:
|
||||||||
Net
(loss) income
|
$ | (3,533,626 | ) | $ | 764,184 | |||
Adjustments to reconcile net
(loss) income to net cash used in operating
activities:
|
||||||||
Depreciation
and amortization of property and equipment
|
34,681 | 41,232 | ||||||
Bad
debt expense
|
- | 27,259 | ||||||
Gain
on write off of accounts payable
|
(5,681 | ) | (60,205 | ) | ||||
Amortization
of deferred financing costs
|
233,712 | 180,960 | ||||||
Estimated
fair value of options issued to employees
|
35,014 | - | ||||||
Amortization
of stock-based consulting fees and employee compensation
|
37,500 | 251,165 | ||||||
Amortization
of BCF and debt discount
|
1,136,035 | 503,788 | ||||||
(Gain)
/ loss on valuation of derivatives liabilities
|
1,575,903 | (2,588,416 | ) | |||||
Changes
in operating assets and liabilities:
|
||||||||
Contracts
receivable
|
225,881 | 20,717 | ||||||
Inventories
|
141,166 | 232,377 | ||||||
Costs
and estimated earnings in excess of billings on uncompleted
contracts
|
355,874 | 135,363 | ||||||
Prepaid
expenses and other current assets
|
8,486 | (264,416 | ) | |||||
Accounts
payable and accrued liabilities
|
281,520 | 202,406 | ||||||
Billings
in excess of costs and estimated earnings on uncompleted
contracts
|
(1,303,946 | ) | 241,013 | |||||
Net
cash used in operating activities
|
(777,481 | ) | (312,573 | ) | ||||
Cash
flows from financing activities:
|
||||||||
Bank
overdraft
|
29,224 | 47,665 | ||||||
Proceeds
from issuance of convertible notes payable, net of financing
costs
|
730,000 | - | ||||||
Principal
payments on notes payable and capital lease
|
(13,632 | ) | - | |||||
Deferred
financing cost
|
- | (16,821 | ) | |||||
Net
cash provided by financing activities
|
745,592 | 30,844 | ||||||
Net
change in cash
|
(31,889 | ) | (281,729 | ) | ||||
Cash
at beginning of period
|
31,889 | 281,729 | ||||||
Cash
at end of period
|
$ | - | $ | - | ||||
Supplemental
disclosure of non-cash financing and investing activities:
|
||||||||
Accrued
cumulative dividends on preferred stock
|
$ | 41,275 | $ | 41,275 | ||||
Debt
discount recorded on convertible notes payable
|
$ | 479,752 | $ | 2,755,107 | ||||
Stock
and warrants Issued for Financing Costs
|
$ | - | $ | 102,500 |
·
|
The Company continues its
aggressive program for selling
machines.
|
·
|
The Company continues to
implement plans to further reduce operating
costs.
|
·
|
The Company is seeking investment
capital through the public and private
markets.
|
·
|
The Company is seeking strategic
acquisition candidates.
|
|
Weighted
|
|||||||||||||||
|
Weighted
|
Average
|
||||||||||||||
|
Average
|
Remaining
|
Aggregate
|
|||||||||||||
|
Number of
|
Exercise
|
Contractual
|
Intrinsic
|
||||||||||||
|
Shares
|
Price
|
Term in Years
|
Value (1)
|
||||||||||||
Vested
|
4,100,000
|
$
|
0.15
|
1.49
|
$
|
—
|
|
(1)
|
Represents the added value as
difference between the exercise price and the closing market price of the
Company's common stock at the end of the reporting period (as of June 30,
2009 and December 31, 2008, the market price of the Company's common stock
was $0.07 and $0.05,
respectively).
|
|
a)
For transactions where goods have already been delivered or services
rendered, the equity instruments are issued on or about the date the
performance is complete (and valued on the date of
issuance).
|
|
b)
For transactions where the instruments are issued on a fully vested,
non-forfeitable basis, the equity instruments are valued on or about the
date of the contract.
|
|
c)
For any transactions not meeting the criteria in (a) or (b) above, the
Company re-measures the consideration at each reporting date based on its
then current stock value.
|
Exercise
Price
|
Number
of
Options
outstanding
|
Weighted
Average
Remaining
Contractual
Life
(Years)
|
Weighted
Average
Exercise
Price
|
|||||||||
$
0.075-0.083
|
1,300,000
|
0.24
|
$
|
0.08
|
||||||||
$
0.15-0.20
|
2,800,000
|
1.25
|
$
|
0.19
|
||||||||
4,100,000
|
$
|
0.15
|
|
Outstanding Warrants
|
|||||||||||
|
Weighted
|
Aggregate
|
||||||||||
|
Number of
|
Average
|
Intrinsic
|
|||||||||
|
Shares
|
Exercise Price
|
Value (1)
|
|||||||||
December
31, 2008
|
5,586,824
|
$
|
0.21
|
$
|
—
|
|||||||
Grants
|
—
|
—
|
||||||||||
—
|
—
|
|||||||||||
Exercises
|
—
|
—
|
||||||||||
Cancellations/
Terminated
|
—
|
—
|
||||||||||
Outstanding
and Exercisable at
|
||||||||||||
June
30, 2009
|
5,586,824
|
$
|
0.21
|
—
|
Exercise Price
|
Number of
Warrants
outstanding
|
Weighted
Average
Remaining
Contractual
Life (Years)
|
Weighted
Average
Exercise
Price
|
|||||||||
$
0.60-0.70
|
1,372,538
|
0.72
|
$
|
0.64
|
||||||||
$
0.07
|
4,214,286
|
3.39
|
$
|
0.07
|
||||||||
5,586,824
|
$
|
0.21
|
June
30,
|
||||||||||||||||
Level 1
|
Level 2
|
Level 3
|
2009
|
|||||||||||||
Fair
value of derivative liability
|
—
|
$
|
—
|
$
|
4,080,953
|
$
|
4,080,953
|
|||||||||
Total
|
$
|
—
|
$
|
—
|
$
|
4,080,953
|
$
|
4,080,953
|
Derivative
liability - December 31, 2008
|
$
|
2,025,298
|
||
Derivative
liability added during the year
|
479,752
|
|||
Change
in fair value of derivative liability
|
1,575,903
|
|||
Total
derivative liability - June 30, 2009
|
$
|
4,080,953
|
|
June 30, 2009
|
December 31, 2008
|
||||||
Cumulative
costs to date
|
$
|
2,578,000
|
$
|
6,756,000
|
||||
Cumulative
gross profit to date
|
2,050,000
|
5,768,000
|
||||||
Cumulative
revenue earned
|
4,628,000
|
12,524,000
|
||||||
Less
progress billings to date
|
(4,651,000
|
)
|
(13,495,000
|
)
|
||||
Net
over billings
|
$
|
(23,000
|
)
|
$
|
(971,000
|
)
|
|
June 30, 2009
|
December 31, 2008
|
||||||
Costs
and estimated earnings in excess of billings on uncompleted
contracts
|
$
|
61,000
|
$
|
417,000
|
||||
Billings
in excess of costs and estimated earnings on uncompleted
contracts
|
(84,000
|
)
|
(1,388,000
|
)
|
||||
Net
over billings
|
$
|
(23,000
|
)
|
$
|
(971,000
|
)
|
|
June 30, 2009
|
December 31, 2008
|
||||||||||||||
CONV NOTES
|
CAMOFI
|
CAMHZN
|
CAMOFI
|
CAMHZN
|
||||||||||||
Principal
|
$
|
2,827,281
|
$
|
750,000
|
$
|
2,827,281
|
$
|
750,000
|
||||||||
Discount
related to warrants liability
|
|
(81,340
|
)
|
|
(33,541
|
)
|
|
(119,369
|
)
|
|
(48,890
|
)
|
||||
Discount
related to convertible option liability
|
|
(1,301,502
|
)
|
|
(205,994
|
) |
|
(1,909,996
|
)
|
|
(301,200
|
) | ||||
Discount
related to stock issued with notes
|
|
(40,938
|
)
|
|
(60,078
|
)
|
||||||||||
Notes
presented net of debt discounts
|
$
|
1,403,501
|
$
|
510,465
|
$
|
737,838
|
$
|
399,910
|
||||||||
Accrued
Interest
|
$
|
226,182
|
$
|
93,750
|
$
|
56,546
|
$
|
37,500
|
Three months ended June 30, 2008
|
||||||||||||
Income
|
Per Share
|
|||||||||||
(Loss)
|
Shares
|
Amount
|
||||||||||
Net
income
|
$ | 438,349 | ||||||||||
Less:
Preferred stock dividends
|
(41,275 | ) | ||||||||||
Basic
income available to common shareholders
|
$ | 397,074 | 15,344,656 | $ | 0.03 | |||||||
Add:
Preferred dividends
|
41,275 | |||||||||||
Add:
Interest on convertible debt
|
148,382 | - | ||||||||||
Add:
Dilutive impact of convertible preferred stock
|
- | 582,000 | ||||||||||
Add:
Dilutive impact of convertible debt
|
- | 29,500,000 | ||||||||||
Add:
Dilutive impact of options and warrants
|
- | 24,182 | ||||||||||
Diluted
income available to common shareholders
|
$ | 586,731 | 45,450,838 | $ | 0.01 |
Six months ended June 30, 2008
|
||||||||||||
Income
|
Per Share
|
|||||||||||
(Loss)
|
Shares
|
Amount
|
||||||||||
Net
income
|
$ | 764,184 | ||||||||||
Less:
Preferred stock dividends
|
(41,275 | ) | ||||||||||
Basic
income available to common shareholders
|
$ | 722,909 | 15,344,656 | $ | 0.05 | |||||||
Add:
Preferred dividends
|
41,275 | |||||||||||
Add:
Interest on convertible debt
|
299,403 | - | ||||||||||
Add:
Dilutive impact of convertible preferred stock
|
- | 582,000 | ||||||||||
Add:
Dilutive impact of convertible debt
|
- | 29,500,000 | ||||||||||
Add:
Dilutive impact of options and warrants
|
- | 2,343,000 | ||||||||||
Diluted
income available to common shareholders
|
$ | 1,063,587 | 47,769,656 | $ | 0.02 |
Effect of Correction
|
As Previously Reported
|
Adjustment
|
As Restated
|
|||||||||
Balance
Sheet as of June 30, 2008
|
||||||||||||
Conversion
Option Liability
|
-
|
3,021,989
|
3,021,989
|
|||||||||
Warrant
Liability
|
-
|
186,916
|
186,916
|
|||||||||
Accumulated
Deficit
|
13,098,072
|
1,203,869
|
14,301,941
|
|||||||||
Total
Stockholders’ Deficit (equity)
|
3,022,952
|
3,185,486
|
6,208,438
|
|||||||||
Statement
of Operations for the three months ended June 30, 2008
|
||||||||||||
Marked-to-Market
Gain (Loss)
|
-
|
(515,057)
|
(515,057)
|
|||||||||
Net
Income (Loss)
|
(849,305
|
)
|
1,241,827
|
392,522
|
||||||||
Net
Income (Loss) Available to common shareholders
|
(890,580)
|
1,241,827
|
351,247
|
|||||||||
EPS
- Basic
|
(0.06
|
)
|
0.08
|
0.02
|
||||||||
EPS
- Diluted
|
(0.06
|
)
|
0.08
|
0.02
|
||||||||
Statement
of Operations for the six months ended June 30, 2008
|
||||||||||||
Marked-to-Market
Gain (Loss)
|
-
|
785,705
|
785,705
|
|||||||||
Net
Income (Loss)
|
(1,824,232
|
)
|
2,542,589
|
718,357
|
||||||||
Net
Income (Loss) Available to common shareholders
|
(1,865,507)
|
2,542,589
|
677,082
|
|||||||||
EPS
- Basic
|
(0.13
|
)
|
0.18
|
0.05
|
||||||||
EPS
- Diluted
|
(0.13
|
)
|
0.18
|
0.05
|
Effect of Correction
|
As Previously Reported
|
Adjustment
|
As Restated
|
|||||||||
Balance
Sheet as of March 31, 2009
|
||||||||||||
(1)
Costs in Excess of Billings
|
15,551
|
86,477
|
102,028
|
|||||||||
(2)
Deferred financing costs
|
435,986
|
108,750
|
544,736
|
|||||||||
(3)
Billings in Excess of Costs
|
823,478
|
(216,417)
|
607,061
|
|||||||||
(4)
February 2009 Convertible Notes
|
464,984
|
49,798
|
514,782
|
|||||||||
(5)
Derivative Liability
|
4,885,000
|
(578,972)
|
4,306,028
|
|||||||||
(6)Accumulated
Deficit
|
16,701,824
|
(1,040,414)
|
15,661,410
|
|||||||||
Statement
of Operations for the three months ended March 31, 2009
|
||||||||||||
(7)
Sales
|
1,298,458
|
(243,756)
|
1,054,702
|
|||||||||
(8)
Cost of sales
|
1,365,543
|
(546,650)
|
818,893
|
|||||||||
(9)
Marked-to-Market Gain (Loss)
|
(2,738,436)
|
937,458
|
(1,800,978)
|
|||||||||
(10)
Interest expense
|
(490,408)
|
(199,938)
|
(632,145)
|
|||||||||
(11)
Net Loss
|
(3,821,869)
|
|
1,040,414
|
(2,781,455)
|
||||||||
Net
Loss Available to common shareholders
|
(3,821,869)
|
1,040,414
|
(2,781,455)
|
|||||||||
EPS
– Basic
|
(0.25
|
)
|
0.07
|
(0.18)
|
||||||||
EPS
- Diluted
|
(0.25
|
)
|
0.07
|
(0.18)
|
(1)
|
Adjustment
in order to reconcile the Company’s balance sheet account to the Company’s
contract accounting
worksheets.
|
(2)
|
Represents
the reclassification of $145,000 of financing costs in connection with the
February 2009 notes, less amortization of
$36,250.
|
(3)
|
Adjustment
in order to reconcile the Company’s balance sheet account to the Company’s
contract accounting
worksheets.
|
(4)
|
Adjustment
reflects an increase of $278,486 of debt discount related to the valuation
of the conversion options and an increase of $119,938 of amortization of
such options, net of reclassification of financing costs of $108,750 noted
in (1) above.
|
(5)
|
Adjustment
reflects an increase of $278,486 related to the valuation of the
conversion options of the February 2009 notes and a decrease in the loss
on fair value of $937,458 and corrections of $80,000 of misclassifications
between the change in fair value and interest
expense.
|
(6)
|
and
(11) The cumulative effect of adjustments (7) through
(11).
|
(7)
|
and
(8) Adjustment in order to reconcile the Company’s P&L accounts to the
Company’s contract accounting
worksheets.
|
(9)
|
Adjustment
reflects an increase of $278,466 in the valuation of the conversion
options in connection with the February 2009 notes, a decrease in the
valuation of all derivatives of $578, 972 and a decrease in the loss on
fair value of $937,458.
|
(10)
|
See
(2) and (4) above.
|
Increase/(Decrease)
%
|
||||
Consulting
and other compensation
|
4
|
|||
Salaries
and related
|
13
|
|||
Selling,
general and administrative
|
(51
|
) |
Increase/(Decrease)
%
|
||||
Consulting
and other compensation
|
(60
|
)
|
||
Salaries
and related
|
85
|
|||
Selling,
general and administrative
|
(49
|
)
|
·
|
The Company continues its
aggressive program for selling
machines.
|
·
|
The Company continues to
implement plans to further reduce operating
costs.
|
·
|
The Company is seeking investment
capital through the public and private
markets.
|
·
|
The Company is seeking strategic
acquisition candidates
|
·
|
The controls identified in the
process documentation were not designed effectively and had no evidence of
operating effectiveness for testing
purposes.
|
·
|
The controls identified in the
process documentation did not cover all the risks for the specific
process
|
·
|
The controls identified in the
process documentation did not cover all applicable assertions for the
significant accounts.
|
August
14, 2009
|
NEW
CENTURY COMPANIES, INC.
|
/s/
DAVID DUQUETTE
|
|
Name: David
Duquette
|
|
Title:
Chairman, President and
Director
|
August
14, 2009
|
/s/
DAVID DUQUETTE
|
Name: David
Duquette
|
|
Title:
Chairman, President and Director
|
|
August
14, 2009
|
/s/
JOSEF CZIKMANTORI
|
Name:
Josef Czikmantori
|
|
Title:
Secretary and
Director
|