4NET SOFTWARE INC - 10-Q - Management's Discussion and Analysis or Plan of Operation.
(Edgar Glimpses Via Acquire Media NewsEdge) Forward Looking Statements Disclosure
This report on Form 10-Q contains, in addition to historical information,
Forward-looking statements within the meaning of Section 27A of the Securities
Act of 1933 and Section 21E of the Securities Exchange Act of 1934 (the
"Exchange Act"). You can identify these forward-looking statements when you see
words such as "expect," "anticipate," "estimate," "may," "plans," "believe," and
other similar expressions. These statements are not guarantees of future
performance and are subject to certain risks, uncertainties and assumptions that
are difficult to predict. Actual results could differ materially from those
projected in the forward-looking statements. Factors that could cause such a
difference include, but are not limited to, those discussed in the section
entitled "Factors Affecting Operating Results and Market Price of Stock,"
contained in the Company's Annual Report on Form 10-K for the year ended
September 30, 2013. Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date hereof. We undertake
no obligation to update any forward -looking statements.
The following discussion and analysis provides information which management of
4net Software, Inc. (the "Company" or "4net Software") believes to be relevant
to an assessment and understanding of the Company's results of operations and
financial condition. This discussion should be read together with the Company's
financial statements and the notes to financial statements, which are included
in this report as well as the Company's Annual Report on Form 10-K for the year
ended September 30, 2013 which is incorporated herein by reference.
4net Software's Acquisition Strategy
The Company is engaged in pursuing an acquisition strategy, whereby 4net
Software is seeking to enter into an acquisition, merger or other business
combination transaction (a "Transaction") with an undervalued business (a
"Target Company") with a history of operating revenues in markets that provide
opportunities for growth. 4net Software is currently engaged in identifying,
investigating and, if investigation warrants, entering into a Transaction with a
Target Company that will enhance 4net Software's revenues and increase
shareholder value. The Company utilizes several criteria to evaluate Target
Companies including whether the Target Company: (1) is an established business
with viable services or products, (2) has an experienced and qualified
management team, (3) has opportunities for growth and/or expansion into other
markets, (4) is accretive to earnings, (5) offers the opportunity to achieve
and/or enhance profitability, and (6) increases shareholder value.
In some cases, management of the Company will have the authority to effect
acquisitions without submitting the proposal to the stockholders for their
consideration. In some instances, however, a proposed Transaction may be
submitted to the stockholders for their consideration, either voluntarily by the
Board of Directors to seek the stockholders' advice and consent, or because of a
requirement of applicable law to do so.
Management believes that the successful implementation of the Company's
Acquisition Strategy will allow 4net Software to increase revenues and earnings
and achieve profitability. There can be no assurances, however, that 4net
Software will successfully complete any additional acquisitions or that 4net
Software will achieve profitability.
Results of Operations
For the three month periods ended December 31, 2013 and 2012, the Company had no
revenue. Operating expenses for the three month periods ended December 31, 2013
and 2012 were $2,800 and $2,700, respectively. Interest expense increased by
$717, due to the increase in the outstanding loan balance.
Liquidity and Capital Resources
During the three months ended December 31, 2013, the Company satisfied its
working capital needs from cash on hand and the loans extended by the Company's
president and principal executive officer to enable the Company to pay its
expenses. As of December 31, 2013, the Company had cash on hand of $1,763. The
Company will need additional funds in order to satisfy its financial obligations
and to finance any transaction or acquisition by the Company. There can be no
assurances that the Company will be able to obtain additional funds if and when
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