Wednesday, August 17, 2005
China Digital Media (CDGT) 10-K
Incorp = NV, period ends Dec 31, 2004
Operated as a BDC briefly until March 28, 2005.
Cleaning Express USA: Florida subsid, cheap home cleaning, 15-20 workers, business was essentially a failure. Hairmax of Florida and Nevada: 2001 till whats-his-name closed them down without authorization. hehe. Etc. etc. This stuff is not important.
Hair salons ended up with non-cancellable leases terminating at the end of 2007. About $9,000/month.
There were some humorous legal disputes with David Dadon, prior Chairman, who believes he is still Chairman of the Board.
We have requested that the Court grant a preliminary injunction, prohibiting the defendant from taking actions that violate the law and perpetuate a fraud on us by representing to any person or entity that he is Chairman of the Board of us or any other officer of us, or is an employee, representative or agent of us, or is authorized to enter into agreements or make statements on our behalf.Plus a few non-material lawsuits against the Company.
The legacy business was actually larger than I thought, generating half a million in revenues last year.
Did some debt and equity placement. 1,975,000 preferred shares issued convertable into 395,000,000 shares of common!! (UPDATE: That's pre-reverse-split of 1-100)
There's an unclear distinction within the 10-K between the legacy business and the new business. They show financial results of the legacy business and then jump directly into financial statements for the new business.
Auditors' statements are on a separate 8-K. Everything is frickin jumbled up.