Liquidity and Capital Resources
As of September 30, 2019 and September 30, 2018, we had cash and cash
equivalents in the amount of $20,198,362 and $22,737,755, respectively. The
decrease in cash is attributed to decrease of deferred income and accounts
payable. These accounts payable were mainly unpaid commissions to Force Club
premium members and these payments were completed as of the date of this report.
Currently, our cash balance is sufficient to fund our operations without the
need for additional funding.
Revenues
We recorded revenue of $28,393,548 for the year ended September 30, 2019 as
opposed to $34,878,988 for the year ended September 30, 2018. The decrease in
revenue, in our opinion, is attributed to a decrease in recruitment activities
of premium force club members.
Net income (loss)
We recorded net loss of $132,017 for the year ended September 30, 2019 and net
income of $2,375,632 for the year ended September 30, 2018. The decrease in net
income is attributed to a decrease in revenue from 2018 to 2019.
Cash flow
For the year ended September 30, 2019, we had negative cash flows from
operations in the amount of $4,953,889. For the year ended September 30, 2018,
we generated cash flows from operations in the amount of $10,665,370. The
decrease in operating cash flow, in our opinion, is attributed to decreases in
net income, accounts payable and deferred income.
Working capital
As of September 30, 2019 and 2018, we had working capital of $15,318,405 and
$13,436,660, respectively. The increase in working capital, in our opinion, is
attributed to decreases in accounts payable and deferred income.
Advertising
Advertising costs are expensed as incurred and included in selling and
distributions expenses. Advertising expenses were $1,908,950 and $913,480 for
the years ended September 30, 2019 and 2018, respectively.
Advertising expenses were comprised of, but not limited to, sales events hosted
for sales agents, exhibitions to promote and display company product offerings,
signboards, and public relations activities.
Future Plans
Over the course of the next twelve months, the Company intends to focus on
expanding its sales network in order to strengthen its business activities.
Currently, revenue is derived primarily from sales of the Company's Force Club
premium package. While it is the intention of the Company to maintain this
revenue stream, and to further increase the number of premium users of the Force
Club, the Company also intends to diversify its operations and develop
additional business activities.
In order to do so, the Company intends to focus on development of an online
educational platform on which additional advertising income can be generated. At
present, there are no definitive plans that have been made regarding the
implementation or direction of this future online educational platform. However,
we intend to begin efforts to hire additional personnel with extensive
experience in web marketing in order to assist in the development of our future
platform.
© Edgar Online, source Glimpses