FBC Holding, Inc.

What they do

The company sells Flowboard skateboards and Snow Skates that it purchases from Sport Technology, Inc. It operates as a development-stage enterprise and had essentially wound down inventory sales by the quarter ended April 30, 2013. Total assets were $7,660 and cash was $2,502 at April 30, 2013.

Revenue drivers

• Flowboard skateboards and Snow Skates — The company generated $160 of revenue from selling its remaining inventory of these products in the quarter ended April 30, 2013, with cost of sales of $67.92.
• Prior-year product sales — Fiscal 2012 revenue was $33,500, the only year with reported revenue; fiscal 2011 revenue was $0.

Recent performance

Revenue was $0 in each quarter from July 2012 through April 2013. For the quarter ended April 30, 2013, the company reported $160 of revenue from selling leftover Flowboard and Snow Skate inventory at a cost of $67.92. Annual revenue was $33,500 in fiscal 2012 versus $0 in fiscal 2011. Net loss was $3.3 million in fiscal 2012 and $6.8 million in fiscal 2011. At April 30, 2013, total liabilities were $4.4 million, shareholder equity was negative $4.4 million, and cash was $2,502.

Strategy

Management describes the company as a development-stage enterprise and continues to report under that basis. The most recent quarterly filing notes a lack of revenues and ongoing expenses. There is no stated plan in the excerpts to restart inventory purchases or launch new products. Recent 8-K filings show changes in accountants and officers rather than operational initiatives. The company's business depends on a credit facility to purchase new and used machines and financing for product acquisition, per risk language in the 10-Q.

Risks

• No revenue — The company reported $0 revenue in each of the last four quarters and only $160 in the quarter ended April 30, 2013 from liquidation of leftover inventory.
• Going concern — At April 30, 2013, total liabilities of $4.4 million exceeded total assets of $7,660, leaving negative shareholder equity of $4.4 million.
• Dependence on external financing — The company cites its ability to maintain a credit facility and obtain financing for product acquisition as factors that could cause actual results to differ.
• Key personnel and governance changes — The company reported officer/director changes in October 2012 and May 2013 and accountant changes in January and June 2013.

Outlook

Management does not provide specific revenue or earnings guidance in the excerpts. The latest 10-Q states that the company has a lack of revenues and ongoing expenses, and the risk factors note dependence on financing and credit facilities. No new product or expansion plans are described in the provided source material.