Fast Moving Stock Bit off More Than They Could Chew With UNIQUE PIZZA & SUBS (PINK:UPZS)

We all know it and we feel guilty about it, but fast food is part of our every day life. It’s not particularly healthy, it’s not particularly delicious, but we just can’t resist ourselves going for a hamburger or a hot dog instead of tasty, home-made food. A lot of companies know that, and there are, generally speaking two types of fast food ventures – global brands like McDonald’s, that make billions in revenue a year, and smaller businesses who are happy to work at a more local level. UNIQUE PIZZA & SUBS (PINK:UPZS) seem to fit in neither of these categories.

Of course, if you ask them, they will disagree, but let’s look at the cold facts. They say that their primary source of revenue will be franchise contracts and this way they will popularize their brand across the globe. Did you notice the use of future tense? There is a very good reason for this: even though UPZS was incorporated in 2003 and they have been in the pizza restaurant business since 2006, they have yet to realize their first penny in revenue. As for the rest of the financials, here’s how they look according to the report for the third quarter of 2012:

• cash: $530
• current assets: $115 thousand
• current liabilities: $5.49 million
• net loss: $4,302
• accumulated deficit: $5.6 million

Once you throw a glance at their statement you will quickly realize that Fast Moving Stock’s email looks like nothing but hot air but then again, we’re sort of used to this phenomenon when we read about UPZS. They have been pumped by newsletters a number of times in the past and the result is pretty evident from the chart, but what was more striking to us was a press-release that we found from March 2012. It stated that UPZS have signed a massive franchise contract according to which more than 20 stores were supposed to be opened under the Unique Pizza brand. When the financial report was filed some 6 months later, there was no sign of any stores being opened or any franchise fees being paid which means that either the contract was terminated or it never existed.

UPZS desperately need contracts like this to be real and to bring them revenue. As of the date of the report, for example, they had two notes payable that were over due. In addition to this, they have been in the court room on a number of occasions being sued by former employees and other companies. The total amount they owe the plaintiffs is $201 thousand. It seems that all these legal battles got them a bit stressed out and they needed a break. How do we know? Well, the financial report says that they have spent around $2 thousand on travelling and entertainment and we’re sure the shareholders have a thing or two to say about that.

In a word, UPZS‘ state is just as terrible as their promoter, Fast Moving Stock’s (FMS) performance history. They will really need quite a lot of time to make up for it, just like FMS will need to come up with a lot of true winners before we can call them even remotely credible. If we have to pick a particular failure from FMS’ history, it would probably be Kabe Exploration Inc (PINK:KABX). The promo emails flooded the inboxes around January 16 and you can see for yourself what has happened since then.