Thursday, August 18, 2005
China Digital Media (CDGT) new 10-Q
Balance Sheet: AR nearly doubled. Inventories went up slightly. Current assets overall went up to $3 million from $2 million last Q. Property increased from $5.5 to $6.1 million. Total assets went from $7.6 million to $9.1 million. AP went up somewhat. A director loaned the company more money (up to $138K from $76K). Current liabilities steady at $4.7 million.
30 million shares outstanding June 30, 2005 (plus the convertables). Equity is $4.5 million.
Income Statement: Sales up to $1 million not counting grant. Cost of sales is $80K. Massive gross margins. SG&A increased to $234K ($171 last Q). Deprec is $291K ($263 last Q). Operational income = $706K which is nearly the same as net income.
Net income per fully diluted share is shown as essentially zero. Fully diluted share count is 404 million (undiluted is 30 million).
This seems like they haven't completed the last step in the reverse merger. If so, anyone owning the stock today is holding outhouse wallpaper. So much for CDGT.