Zahlen 3. Quartal 2006
Form 10QSB for INVICTA GROUP INC 15-Nov-2006 Quarterly Report
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF OPERATIONS The following discussion and analysis should be read in conjunction with Invicta Group's consolidated financial statements included in this report. Results of Operations Revenues Revenues are advertising flat fees charged to travel suppliers for media purchase on our website www.travelhotlink.com . The travel suppliers are seeking a media for the last minute travelers that are seeking deep discounts to motivate them to travel now; their goal is to advertise online and receive a discounted rate for their perishable products (car rentals, airline seats, hotels rooms, cruise cabins and packaged tours). Revenues for the quarter ended September 30, 2006 were $129,840 compared to revenues of $16,608 for the quarter ended September 30, 2005. The revenues in 2006 versus 2005 were generated from Internet Media Advertising vs. 2005 revenues were from airline commissions. Revenues for nine months 2005 were $98,041 and nine months 2006 were $206,601. Expenses The major components of expenses are general and administrative expenses. The three months ended September 30, 2006 major expenses were: Payroll $66,335; Internet design $27,907; Professional fees $35,301; the total G&A expenses for the quarter were $163,759. Net Profit/Net Losses Net profit for the quarter ended September 30, 2006 was $(40,828); income per share: ($0.000) compared to a net loss of ($125,634); loss per share ($0.001) for the quarter ended September 30, 2005. The nine months losses were ($283,642); loss per share ($0.000 ) for June 30, 2006 and ($717,569): loss per share ($0.004) for nine months 2005. Airplan Inc Liability Invicta has a liability to the seller of Airplan Inc, a subsidiary of Invicta, totaling $400,000. The amount represents $340,000 for the purchase and $60,000 shareholder loan that was on the Balance Sheet acquired. Invicta does not plan to pay this liability due to the seller defaulting on a signed 5 year employment agreement causing the failure of the business. The seller departed after 7 months, resulting in the loss of airline contracts that represented over 50% of the companies revenue. Invicta has not heard from the Seller and neither party has proceeded with any legal action to date. Funding 3rd Quarter 2006, the Company received additional equity advances of $25,00; and $100,800 from the sale of IVGA stock totaling 128,500,000 shares. Invicta has received equity funding advances from an Institutional Investor totaling $437,525 as of 9/30/2006: Prepaid Warrant balance is $215,498 and Debenture balance is $222,027. Liquidity September 30, 2006 and 2005, Invicta Group's current ratios were (.16%) and (.065%) respectively. Invicta Group has not generated sufficient revenue in any period, to carry its costs of operations. Invicta has derived its liquidity principally from the sale of stock. Common Stock Issued 2006 Invicta issued 102,734,000 common shares in the 1st Quarter of 2006; 38,918,332 shares were issued for $40,500 consulting, 13,815,668 were issued for professionals fees of $14,000 and 50 million shares were issued to raise $43,000 equity funds. Invicta issued 2nd Quarter shares totaling 273,988,222; 5 million were for Legal fees and the balance were for payments of advanced equity funding. The total number of shares outstanding on 6/30/2006 were 616,211,589. Invicta issued 238,833,333 shares in the 3rd Qtr: 108,333,333 were issued to Institutional Investor for payment of $65,000; 128,500,000 were issued for $100,800 funding and 2,000,000 shares were issued to Consultants. The total number of outstanding shares at 9/30/2006 was 855,044,922. Capital Resources Invicta needs additional capital invested in the company to assure survival. Invicta will need to increase revenues to a minimum of $45,000 per month to have positive cash flow and assure survival. Invicta source of working capital is generation of revenues form Travel Hot Link media sales and the sale of common stock. Management estimates a $20,000 cash shortfall a month for the next 6 months. |