Kimberly Parry Organics Corp (OTCMKTS:KPOC) Files Annual Report
The wait is finally over – Kimberly Parry Organics Corp (OTCMKTS:KPOC) finally put up its overdue annual report. The dismal figures in it did not stop the price from climbing 1% to stop at $0.79 per share.
The annual filing came three weeks past its deadline but at least it’s finally here for all to peruse. Sadly, the information contained in it is far from optimistic. Perhaps it’s best to start with the balance sheet and go from there. Here is what KPOC had on its books as of May 31, 2015:
- ZERO in cash
- $1.4 million in current liabilities
- $264 thousand in annual revenues
- $1.4 million in annual net loss
The company is still cashless. Annual net loss has increased considerably against 2014, despite shrinking general and administrative expenses. This is largely due to the generous salaries KPOC hands out to its management and employees. For the year ended May 2015, KPOC paid out $120,000 in “management salaries” and $249,120 in “payroll” – a combined sum that exceeds the company’s annual revenue by a six-digit figure.
Additionally, its last fiscal quarter, KPOC issued 10.82 million restricted common shares to clear a note payable with its attached interest, amounting in total to $10,820. In a classical case of sloppy pink sheet reporting, KPOC recorded those shares as issued at $0.05 per share, instead of the real price of $0.001 per share, assuming 10.82 million shares were indeed issued to clear $10,820 in debt.
The complete lack of cash on hand, the generous remuneration policies and the share issuance practices of KPOC are probably enough to wave a red flag for the more careful investors.
