(Mark One) | ||
S
|
ANNUAL
REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
OF
1934
|
|
For
the fiscal year ended September 30, 2007
|
||
¨
|
TRANSITION
REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
OF
1934
|
|
For
the transition period from ______ to ______
|
||
Commission
File Number 000-32875
|
Delaware
|
98-0233941
|
(State
or other jurisdiction of incorporation or organization)
|
(I.R.S.
Employer Identification No.)
|
42
Mercantile Way
|
|
P.O.
Box 3087 Malaga D C 6945
|
|
Western
Australia
|
|
(Address
of principal executive offices)
|
|
Issuer’s
telephone number: +61 (8) 9248 3188
|
|
Securities
registered under Section 12(b) of the Exchange Act:
|
None
|
Securities
registered under Section 12(g) of the Exchange Act:
|
Common
stock, $0.01 par value
|
Item
1.
|
Description
of
Business.
|
|
·
|
the
tendency to separate into chips or fragments when subjected to high
impact;
|
|
·
|
uneven
base metal dilution resulting in uneven alloy content;
and
|
|
·
|
rough
surfaces which result in poor material
flow.
|
|
·
|
the
mining of iron, gold, nickel, coal, copper and other
ores;
|
|
·
|
brick
and cement works;
|
|
·
|
power
stations;
|
|
·
|
the
manufacture of ore feed bins, transfer chutes, dredging systems and
conveyor side skirts;
|
|
·
|
bulldozer
arms and blades; and
|
|
·
|
truck
tray liners and bucket loader
liners.
|
Item
2.
|
Description
of
Property.
|
Item
4.
|
Submission
of Matters to a Vote
of Security Holders.
|
Item
5.
|
Market
for Common Equity and
Related Stockholders Matters and Small Business Issuer Purchases
of Equity
Securities
|
Bid
Price Per Share
|
||||
Year
ended September 30, 2007
|
High
|
Low
|
||
October
1 – December 31, 2006
|
$0.22
|
$0.11
|
||
January
1 – March 31, 2007
|
$0.60
|
$0.11
|
||
April
1 – June 30, 2007
|
$0.70
|
$0.39
|
||
July
1 – September 30, 2007
|
$0.85
|
$0.30
|
||
Year
ended September 30, 2006
|
High
|
Low
|
||
October
1 – December 31, 2005
|
$0.52
|
$0.38
|
||
January
1 – March 31, 2006
|
$0.48
|
$0.18
|
||
April
1 – June 30, 2006
|
$0.24
|
$0.31
|
||
July
1 – September 30, 2006
|
$0.20
|
$0.20
|
Number
of securities to be issued upon exercise of outstanding options,
warrants
and rights
|
Weighted-average
exercise price of outstanding options, warrants and rights
|
Number
of securities remaining available for future issuance under equity
compensation plans (excluding securities reflected in column
(a))
|
|
(a)
|
(b)
|
(c)
|
|
Equity
compensation plans approved by security holders (1)
|
None
|
None
|
2,000,000
|
Equity
compensation plans not approved by security holders
|
—
|
—
|
—
|
Total
|
None
|
None
|
2,000,000
|
Item
6.
|
Management's
Discussion and
Analysis or Plan of
Operation
|
Total
|
Less
Than 1
Year
|
1-3
Years
|
4-5
Years
|
After
5
Years
|
|
Contractual
Obligations
|
|||||
Long
term debt
|
258,320
|
58,891
|
198,724
|
705
|
-
|
Operating
leases
|
233,750
|
85,000
|
148,750
|
-
|
|
Total
contractual obligations
|
$492,070
|
$143,892
|
$347,474
|
$705
|
-
|
|
·
|
With
a price of less than $5.00 per
share;
|
|
·
|
That
are not traded on a “recognized” national
exchange;
|
|
·
|
Whose
prices are not quoted on the Nasdaq automated quotation system (Nasdaq
listed stock must still have a price of not less than $5.00 per share);
or
|
|
·
|
In
issuers with net tangible assets less than $2.0 million (if the issuer
has
been in continuous operation for at least three years) or $5.0 million
(if
in continuous operation for less than three years), or with average
revenues of less than $6.0 million for the last three
years.
|
|
·
|
Establish
and develop such a sales force;
|
|
·
|
Gain
market acceptance for our products;
|
|
·
|
Obtain
and retain qualified sales personnel on acceptable terms;
and
|
|
·
|
Meet
our proposed marketing schedules or
plans.
|
Item
7.
|
Financial
Statements.
|
Item
8.
|
Changes
In and Disagreements
with Accountants on Accounting and Financial
Disclosure.
|
(b)
|
Changes
in internal control over financial
reporting.
|
|
During
the last quarter of the year under report, there was no change in
our
internal control over financial reporting that has materially affected,
or
is reasonably likely to materially affect, our internal control over
financial reporting.
|
Item.
9
|
Directors,
Executive Officers,
Promoters and Control Persons; Compliance with Section 16(a) of the
Exchange Act
|
Name |
|
Age
|
Position
|
|
Gene
Kostecki
|
|
62
|
President,
Chief Executive Officer and a Director
|
|
Alan
C. Winduss
|
|
66
|
Chief
Financial Officer, Secretary and a
Director
|
Item
10.
|
Executive
Compensation.
|
SUMMARY
COMPENSATION
TABLE
|
||||||||||
Annual
Compensation
|
||||||||||
Name
and
Position
|
Year
|
Salary
|
Bonus
|
Long-Term
Compensation
|
All
Other
Compensation
|
|||||
Gene
Kostecki
|
2007
|
$150,000
|
$0
|
—
|
—
|
|||||
President
and Chief
|
2006
|
$150,000
|
$0
|
—
|
—
|
|||||
Executive Officer |
2005
|
$150,000
|
$0
|
—
|
—
|
Item
11.
|
Security
Ownership of Certain
Beneficial Owners and
Management.
|
|
·
|
each
person who we know beneficially owns more than 5% of the outstanding
shares of our common stock;
|
|
·
|
each
of our executive officers and directors;
and
|
|
·
|
all
of our officers and directors as a
group.
|
Name
of Beneficial
Owner
|
Number
of
Shares
|
Percentage
of Common Stock
Beneficially Owned
|
||||||
Gene
Kostecki
|
10,598,000
|
62.5 | % | |||||
Alan
C. Winduss
|
1,893,250
|
11.2 | % | |||||
All
officers and directors as a group (two persons)
|
12,491,250
|
74.0 | % |
Item
12.
|
Certain
Relationships and
Related Transactions.
|
Item
13.
|
Exhibits
|
Exhibit
No.
|
Description
|
|
3.1
|
Certificate
of Incorporation*
|
|
3.2
|
By-laws*
|
|
4.1
|
Specimen
Certificate*
|
|
10.1
|
2000
Stock Option Plan*
|
|
10.2
|
License
Agreement, dated May 4, 2000, between Alloy Steel and Kenside Investments,
Ltd.*
|
Exhibit No. | Description | |
10.3
|
Employment
Agreement, dated October 2, 2000, between Alloy Steel and Gene
Kostecki*
|
|
10.4
|
Employment
Agreement, dated October 2, 2000, between Alloy Steel and Alan
Winduss*
|
|
10.5
|
Consulting
Agreement, dated October 2, 2000, between Alloy Steel and Berryhill
Investments, Ltd.*
|
|
10.6
|
Consulting
Agreement, dated October 2, 2000, between Alloy Steel and Chartreuse
Nominees Pty. Ltd.*
|
|
10.7
|
Amended
and Restated Consulting Agreement, dated October 2, 2000, between
Alloy
Steel and Persia Consulting Group, Inc.*
|
|
10.8
|
Consulting
Agreement, dated October 2, 2000, between Alloy Steel and Ragstar
Investments, Ltd.*
|
|
10.9
|
Consulting
Agreement, dated October 2, 2000, between Alloy Steel and Alan Winduss
Pty. Ltd.*
|
|
10.10
|
Consulting
Agreement, dated October 2, 2000, between Alloy Steel and Ames Nominees
Pty. Ltd.*
|
|
10.11
|
Lease
Agreement, dated July 1, 2000, between Alloy Steel and Raglan Securities
Pty. Ltd.*
|
|
10.12
|
Asset
Purchase Agreement, dated October 2, 2000 between Alloy Steel and
Collier
Unit Trust*
|
|
10.13
|
Equipment
Purchase Agreement, dated October 2, 2000, between Alloy Steel and
Collier
Unit Trust*
|
|
10.14
|
Asset
Purchase Agreement, dated October 2, 2000, by and among Alloy Steel
and
Gene Kostecki and Alan Winduss*
|
|
10.15
|
Amendment
dated July 1, 2004, to Employment Agreement between Alloy Steel and
Gene
Kostecki*
|
|
10.16
|
Amendment
dated July 1, 2004, to Employment Agreement between Alloy Steel and
Alan
Winduss*
|
|
31.1
|
Certification
of the Chief Executive Officer required by Rule 13a-14(a) or Rule
15d-14(a)**
|
|
31.2
|
Certification
of the Chief Financial Officer required by Rule 13a-14(a) or Rule
15d-14(a)**
|
|
32.1
|
Certification
of the Chief Executive Officer required by Rule 13a-14(b) or Rule
15d-14(b) and 18 U.S.C. 1350**
|
|
32.2
|
Certification
of the Chief Financial Officer required by Rule 13a-14(b) or Rule
15d-14(b) and 18 U.S.C. 1350**
|
Item
14.
|
Principal Accountant Fees and Services. |
2007
|
2006
|
|
Audit
Fees
|
14,870 |
53,103
|
Audit-Related
Fees
|
-
|
-
|
Tax
Fees
|
-
|
-
|
All
Other Fees
|
-
|
-
|
Dated:
January 14, 2008
|
ALLOY STEEL INTERNATIONAL, INC. | ||
(Registrant)
|
|||
By:
|
/s/
Gene Kostecki
|
||
Gene
Kostecki
|
|||
President
and Chief Executive Officer
|
/s/
Gene Kosetcki
|
Director
and President and Chief Executive Officer (Principal Executive
Officer)
|
January
14, 2008
|
Gene
Kostecki
|
||
/s/
Alan Winduss
|
Director
and Chief Financial Officer and Secretary (Principal Financial
and
Accounting Officer)
|
January
14, 2008
|
Alan
C. Winduss
|
Exhibit
No.
|
Description
|
|
3.1
|
Certificate
of Incorporation [Incorporated by reference to Exhibit 3.1 to our
Registration Statement on Form SB-2, SEC File No. 333-49146, filed
on
November 2, 2000, as amended (the “Registration
Statement”).]
|
|
3.2
|
By-laws
[Incorporated by reference to Exhibit 3.2 to the Registration
Statement.]
|
|
4.1
|
Specimen
Certificate [Incorporated by reference to Exhibit 4.1 to the Registration
Statement.]
|
|
10.1
|
2000
Stock Option Plan [Incorporated by reference to Exhibit 10.1 to the
Registration Statement.]
|
|
10.2
|
License
Agreement, dated May 4, 2000, between Alloy Steel and Kenside Investments,
Ltd. [Incorporated by reference to Exhibit 10.2 to the Registration
Statement.]
|
|
10.3
|
Employment
Agreement, dated October 2, 2000, between Alloy Steel and Gene Kostecki
[Incorporated by reference to Exhibit 10.3 to the Registration
Statement.]
|
|
10.4
|
Employment
Agreement, dated October 2, 2000, between Alloy Steel and Alan Winduss
[Incorporated by reference to Exhibit 10.4 to the Registration
Statement.]
|
|
10.5
|
Consulting
Agreement, dated October 2, 2000, between Alloy Steel and Berryhill
Investments, Ltd. [Incorporated by reference to Exhibit 10.5 to the
Registration Statement.]
|
|
10.6
|
Consulting
Agreement, dated October 2, 2000, between Alloy Steel and Chartreuse
Nominees Pty. Ltd. [Incorporated by reference to Exhibit 10.6 to
the
Registration Statement.]
|
|
10.7
|
Amended
and Restated Consulting Agreement, dated October 2, 2000, between
Alloy
Steel and Persia Consulting Group, Inc. [Incorporated by reference
to
Exhibit 10.7 to the Registration Statement.]
|
|
10.8
|
Consulting
Agreement, dated October 2, 2000, between Alloy Steel and Ragstar
Investments, Ltd. [Incorporated by reference to Exhibit 10.8 to the
Registration Statement.]
|
|
10.9
|
Consulting
Agreement, dated October 2, 2000, between Alloy Steel and Alan Winduss
Pty. Ltd. [Incorporated by reference to Exhibit 10.9 to the Registration
Statement.]
|
|
10.10
|
Consulting
Agreement, dated October 2, 2000, between Alloy Steel and Ames Nominees
Pty. Ltd. [Incorporated by reference to Exhibit 10.10 to the Registration
Statement.]
|
|
10.11
|
Lease
Agreement, dated July 1, 2000, between Alloy Steel and Raglan Securities
Pty. Ltd. [Incorporated by reference to Exhibit 10.11 to the Registration
Statement.]
|
|
10.12
|
Asset
Purchase Agreement, dated October 2, 2000 between Alloy Steel and
Collier
Unit Trust [Incorporated by reference to Exhibit 10.12 to the Registration
Statement.]
|
|
10.13
|
Equipment
Purchase Agreement, dated October 2, 2000, between Alloy Steel and
Collier
Unit Trust [Incorporated by reference to Exhibit 10.13 to the Registration
Statement.]
|
|
10.14
|
Asset
Purchase Agreement, dated October 2, 2000, by and among Alloy Steel
and
Gene Kostecki and Alan Winduss [Incorporated by reference to Exhibit
10.14
to the Registration Statement.]
|
|
10.15
|
Amendment
dated July 1, 2004, to Employment Agreement between Alloy Steel and
Gene
Kostecki.
|
|
10.16
|
Amendment
dated July 1, 2004, to Employment Agreement between Alloy Steel and
Alan
Winduss.
|
|
Certification
of the Chief Executive Officer required by Rule 13a-14(a) or Rule
15d-14(a)
|
||
Certification
of the Chief Financial Officer required by Rule 13a-14(a) or Rule
15d-14(a)
|
||
Certification
of the Chief Executive Officer required by Rule 13a-14(b) or Rule
15d-14(b) and 18 U.S.C. 1350
|
||
Certification
of the Chief Financial Officer required by Rule 13a-14(b) or Rule
15d-14(b) and 18 U.S.C. 1350
|
Report
of Independent
Registered Public Accounting Firm
|
F-2
|
|
Consolidated
Financial
Statements
|
||
|
||
Consolidated
Balance Sheet September 30, 2007
|
F-3
|
|
|
||
Consolidated
Statements of Operations Years ended September 30, 2007 and
2006
|
F-4
|
|
Consolidated
Statements of Stockholders' EquityYears ended September 30, 2007
and
2006
|
F-5
|
|
Consolidated
Statements of Cash Flows Years ended September 30, 2007 and
2006
|
F-6
|
|
Notes
to Consolidated Financial Statements
|
F-7
– 15
|
/s/ Grant
Thornton (WA) Partnership
|
|
Perth,
Australia
|
|
January
14, 2008
|
ASSETS
|
|||||||
Current
assets
|
|||||||
Cash
and cash equivalents
|
$ |
484,295
|
|||||
Accounts
receivable
|
2,488,056
|
||||||
Inventories
|
719,760
|
||||||
Prepaid
expenses and other current assets
|
136,979
|
||||||
Total
current assets
|
3,829,090
|
||||||
Property
and equipment,
net
|
2,648,155
|
||||||
Other
assets
|
|||||||
Other
|
11,937
|
||||||
Deferred
tax assets
|
-
|
||||||
Intangibles
|
-
|
||||||
Total
other assets
|
11,937
|
||||||
$ |
6,489,182
|
||||||
LIABILITIES
AND STOCKHOLDERS'
EQUITY
|
|||||||
Current
liabilities
|
|||||||
Notes
payable, current portion
|
$ |
58,891
|
|||||
Notes
payable, officers, current portion
|
62,377
|
||||||
Accrued
officers' salaries
|
330,078
|
||||||
Royalties
payable, related party
|
503,617
|
||||||
Loan
payable, related party
|
77,330
|
||||||
Current
tax payable
|
533,067
|
||||||
Accounts
payable and other current liabilities
|
1,237,109
|
||||||
Total
current liabilities
|
2,802,469
|
||||||
Long-term
liabilities
|
|||||||
Notes
payable, less current portion
|
199,429
|
||||||
Notes
payable, officers, less current portion
|
58,051
|
||||||
Employee
entitlement provisions
|
10,928
|
||||||
Deferred
tax liabilities
|
38,295
|
||||||
Total
long-term liabilities
|
306,703
|
||||||
Commitments
and
contingencies
|
|||||||
Stockholders'
equity
|
|||||||
Preferred
stock, $.01 par value, authorized 3,000,000shares; issued and outstanding
- none
|
-
|
||||||
Common
stock, $.01 par value, authorized 50,000,000shares; issued and
outstanding 16,950,000 shares
|
169,500
|
||||||
Capital
in excess of par value
|
1,773,382
|
||||||
Accumulated
deficit
|
330,497
|
||||||
Accumulated
other comprehensive income
|
1,086,631
|
||||||
Total
stockholders' equity
|
3,360,010
|
||||||
$ |
6,469,182
|
Sep-07
|
Sep-06
|
|||||||
Sales
|
$ |
8,729,644
|
$ |
3,386,083
|
||||
Cost
of
sales
|
4,385,872
|
2,057,385
|
||||||
Gross
profit
|
4,343,772
|
1,328,698
|
||||||
Selling,
general and
administrative expenses
|
2,320,778
|
1,763,517
|
||||||
Profit
(Loss) from
operations
|
2,022,994
|
(434,819 | ) | |||||
Other
income
(expense)
|
||||||||
Interest
income
|
15,436
|
31,887
|
||||||
Interest
expense
|
(26,900 | ) | (22,218 | ) | ||||
Insurance
recovery
|
21,544
|
10,409
|
||||||
Sundry
Income
|
20,890
|
44
|
||||||
Writedown
of intangible assets
|
(90,512 | ) |
-
|
|||||
Profit
on disposal of property and equipment
|
-
|
5,976
|
||||||
(59,542 | ) |
26,098
|
||||||
Income
(loss) before income tax
(expense) benefit
|
1,963,452
|
(408,721 | ) | |||||
Income
tax (expense)
benefit
|
(654,587 | ) |
134,695
|
|||||
Net
income
(loss)
|
$ |
1,308,865
|
$ | (274,026 | ) | |||
Basic
and diluted income (loss)
per common share
|
$ |
0.08
|
$ | (0.02 | ) | |||
Weighted
average number of
common shares used in computing basic and diluted income (loss)
per common
share
|
16,950,000
|
16,950,000
|
Capital
in excess
|
Accumulated
Other
|
Total
|
||||||||||||||||||||||||||
Common
Stock
|
of
par
|
Accumulated
|
Comprehensive
|
Comprehensive
|
Stockholders'
|
|||||||||||||||||||||||
Shares
|
Amount
|
value
|
Deficit
|
Income
|
Income
|
Equity
|
||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||
Balances,
September 30, 2005
|
16,950,000
|
$ |
169,500
|
$ |
1,773,382
|
$ | (704,342 | ) | $ |
577,545
|
$ |
1,816,085
|
||||||||||||||||
Net
Loss
|
(274,026 | ) | $ | (274,026 | ) | (274,026 | ) | |||||||||||||||||||||
Other
comprehensive income, foreign currency translation
adjustment
|
(39,356 | ) | (39,356 | ) | (39,356 | ) | ||||||||||||||||||||||
Total
comprehensive income - Year ended September 30, 2006
|
$ | (313,382 | ) | |||||||||||||||||||||||||
Balances,
September 30, 2006
|
16,950,000
|
169,500
|
1,773,382
|
(978,368 | ) |
538,189
|
1,502,703
|
|||||||||||||||||||||
Net
Income
|
1,308,865
|
$ |
1,308,865
|
1,308,865
|
||||||||||||||||||||||||
Other
comprehensive income, foreign currency translation
adjustment
|
548,442
|
548,442
|
548,442
|
|||||||||||||||||||||||||
Total
comprehensive income - Year ended September 30, 2007
|
$ |
1,857,307
|
||||||||||||||||||||||||||
Balances,
September 30, 2007
|
16,950,000
|
$ |
169,500
|
$ |
1,773,382
|
$ |
330,497
|
$ |
1,086,631
|
$ |
3,360,010
|
|||||||||||||||||
Sep-07
|
Sep-06
|
|||||||
Cash
flows from operating
activities
|
||||||||
Net
income (loss)
|
$ |
1,308,865
|
$ | (274,026 | ) | |||
Adjustments
to reconcile net income (loss) to net cash provided by(used in)
operating
activities:
|
||||||||
Depreciation
|
168,548
|
175,631
|
||||||
Write
down of intangible assets
|
90,512
|
-
|
||||||
Profit
on disposal of property and equipment
|
-
|
(5,976 | ) | |||||
Increase
(decrease) in cash and cash equivalents attributable to changes
in
operating assets and liabilities:
|
||||||||
Accounts
receivable
|
(1,701,798 | ) |
61,400
|
|||||
Inventories
|
(80,682 | ) |
114,287
|
|||||
Income
taxes receivable
|
-
|
160,792
|
||||||
Prepaid
expenses and other current assets
|
(96,150 | ) | (4,346 | ) | ||||
Accrued
officer's salaries
|
20,680
|
85,302
|
||||||
Accounts
payable and other current liabilities
|
726,837
|
(200,364 | ) | |||||
Income
taxes payable
|
732,940
|
-
|
||||||
Net
cash provided by operating
activities
|
1,169,752
|
112,700
|
||||||
Cash
flows from investing
activities
|
||||||||
Purchase
of property and equipment
|
(505,492 | ) | (121,476 | ) | ||||
Payment
on deposit for investment
|
-
|
-
|
||||||
Proceeds
on disposal of property and equipment
|
-
|
6,574
|
||||||
Net
cash used in investing
activities
|
(505,492 | ) | (114,902 | ) | ||||
Net
cash used in financing
activities, repayment on notes and loan payables
|
||||||||
(377,946 | ) | (345,473 | ) | |||||
Effect
of foreign exchange rate
changes on cash and cash equivalents
|
||||||||
179,026
|
238,710
|
|||||||
Net
increase (decrease) in cash
and cash equivalents
|
465,340
|
(108,965 | ) | |||||
Cash
and cash
equivalents, beginning of year
|
18,955
|
127,920
|
||||||
Cash
and cash
equivalents, end of year
|
$ |
484,295
|
$ |
18,955
|
||||
Supplemental
disclosures of
cash flow information,
cash paid during the
years for:
|
||||||||
Income
taxes
|
$ | (75,866 | ) | $ |
-
|
|||
Interest
|
$ |
26,900
|
$ |
22,218
|
||||
Supplemental disclosures of non-cash investing and financing activities, | ||||||||
Equipment
acquired under notes payable
|
$ |
28,197
|
$ |
244,203
|
Asset
|
Estimated
Useful
Lives
|
Plant
and equipment
|
5-20
years
|
Furniture
and fixtures
|
5-7
years
|
Vehicles
|
3-5
years
|
Office
and computer equipment
|
3-5
years
|
Raw
materials
|
$ |
574,084
|
||
Work
in progress
|
45,949
|
|||
Finished
goods
|
99,717
|
|||
$ |
719,760
|
Prepaid
expenses
|
$ |
35,289
|
||
Deposit
paid to suppliers
|
101,690
|
|||
$ |
136,979
|
Plant
and equipment
|
$ |
3,445,719
|
||
Furniture
and fixtures
|
38,661
|
|||
Vehicles
|
133,469
|
|||
Leasehold
Improvements
|
27,563
|
|||
Office
and computer equipment
|
24,649
|
|||
3,670,061
|
||||
Less
accumulated depreciation
|
1,021,906
|
|||
$ |
2,648,155
|
Note
payable (a)
|
16,875
|
|||
Note
payable (b)
|
188,071
|
|||
Note
payable (c)
|
24,037
|
|||
Note
payable (d)
|
29,337
|
|||
258,320
|
||||
Less
current portion
|
58,891
|
|||
$ |
199,429
|
(a)
|
The
note is payable in monthly installments of $382 including interest
at a
rate of 7.61% per annum, with a final payment in March 2010.
The note is collateralized by the underlying equipment and is guaranteed
by the officers of the Company.
|
(b)
|
The
note is payable in monthly installments of $4,449 including interest
at a
rate of 7.25% per annum, with a final balloon payment in November
2010.
The note is collateralized by the underlying equipment and is guaranteed
by the officers of the Company.
|
(c)
|
The
note is payable in monthly installments of $693 including interest
at a
rate of 7.61% per annum, with a final balloon payment in February
2010.
The note is collateralized by the underlying equipment and is guaranteed
by the officers of the Company.
|
(d)
|
The
note is payable in monthly installments of $705 including interest
at a
rate of 8.45% per annum, with a final payment in October
2011. The note is collateralized by the underlying equipment
and is guaranteed by the officers of the
company.
|
Year
ending September
30,
|
||||
2008
|
58,891
|
|||
2009
|
63,427
|
|||
2010
|
76,104
|
|||
2011
|
59,193
|
|||
2012
|
705
|
|||
$ |
258,320
|
Note
payable (a)
|
$ |
40,682
|
||
Note
payable (b)
|
79,746
|
|||
120,428
|
||||
Less
current portion
|
62,377
|
|||
$ |
78,051
|
(a)
|
The
note is payable in monthly installments of $1,498 including interest
at a
rate of 1% per annum, with a final payment in June 2009. The note
is
unsecured and is due to an officer of the
Company.
|
(b)
|
The
note is payable in monthly installments of $2,936 including interest
at a
rate of 1% per annum, with a final payment in June 2009. The note
is
unsecured and is due to an officer of the
Company.
|
Year
ending September
30,
|
||||
2008
|
62,377
|
|||
2009
|
58,051
|
|||
$ |
120,428
|
2007
|
2006
|
|||||||
Australia
|
2,181,961
|
(293,266 | ) | |||||
US
|
(218,509 | ) | (115,455 | ) | ||||
1,963,452
|
(408,721 | ) |
2007
|
2006
|
|||||||
Current
|
||||||||
Foreign
|
480,960
|
(46,725 | ) | |||||
Deferred
|
||||||||
Foreign
|
173,621 | (87,970 | ) | |||||
654,581 | (134,695 | ) |
2007
|
2006
|
|||||||
Deferred
tax assets
|
||||||||
Net
operating loss carryforwards
|
609,879
|
710,534
|
||||||
Other
|
42,854
|
29,663
|
||||||
652,733
|
740,197
|
|||||||
Less
valuation allowance
|
609,879
|
565,080
|
||||||
42,854
|
175,117
|
|||||||
Deferred
tax liabilities
|
||||||||
Other
|
(81,149 | ) | (39,791 | ) | ||||
Deferred
tax assets, net
|
(38,295 | ) |
135,326
|
2007
|
2006
|
|||||||
U.S.
federal statutory rate
|
(35 | %) | (35 | %) | ||||
Change
in valuation allowance
|
(2 | %) | 10 | % | ||||
Change
in estimated research and development credit
|
-
|
-
|
||||||
Refund
related to prior years research and development credit
|
-
|
-
|
||||||
Over
accrual from prior year
|
-
|
(11 | %) | |||||
Other
|
4 | % | 3 | % | ||||
Effective
tax rate
|
(33 | %) | (33 | %) |
2007
|
2006
|
|||||||
Customer
A
|
10.6 | % | 15.5 | % | ||||
Customer
B
|
35.7 | % | - |
2007
|
2006
|
|||||||
Australia
|
72 | % | 64 | % | ||||
Americas
|
14 | % | 23 | % | ||||
Other
|
14 | % | 13 | % | ||||
100 | % | 100 | % |