KANAKARIS legt SEC-Bericht vor - 500 Beiträge pro Seite

[pagl]

Allein daß dies geschieht, ist schon als positiv zu werten.

February 14, 2000
KANAKARIS COMMUNICATIONS INC (KKRS)
Quarterly Report (SEC form 10QSB)
MANAGEMENT`S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS

This Quarterly Report on Form 10-QSB contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and we intend that such forward-looking statements be subject to the safe harbors created thereby.

We have incurred significant losses since our inception. As of December 31, 1999, we had an accumulated deficit of $10,080,424. We expect to incur substantial operating losses for the foreseeable future. Our results of operations have been and may continue to be subject to significant fluctuations. The results for a particular period may vary due to a number of factors, many of which are beyond our control, including:

o the timing and nature of revenues from our Internet and e-commerce businesses and data control console product sales that are recognized during any particular quarter; o the impact of price competition on our average prices for our products and services; o market acceptance of new product or service introductions by us or our competitors; o the timing of expenditures in anticipation of future sales; o product returns; o the financial health of our customers; o the overall state of the Internet and e-commerce industries and the data control console industries; and o economic conditions generally.

Any of these factors could cause operating results to vary significantly from prior periods and period-to-period. As a result, we believe that period-to-period comparisons of our results of operations are not necessarily meaningful and should not be relied upon as any indication of future performance. Fluctuations in our operating results could cause the price of our common stock to fluctuate substantially.

The information contained in this report is not a complete description of our business or the risks associated with an investment in our company`s common stock. Before deciding to buy or maintain a position in our common stock, you should carefully review and consider the various disclosures made by us in this report and in other materials we have filed with the Securities and Exchange Commission, including our Form SB-2 dated January 5, 2000 (and, in particular, in the "Risk Factors" section therein), that discusses our business in greater detail and that also discloses various risks, uncertainties and other factors that may affect our business, results of operations or financial condition.

Assumptions relating to the forward-looking statements involve judgments with respect to, among other things, future economic, competitive and market conditions, all of which are difficult or impossible to predict accurately, and many of which are beyond our control. In addition, our business and operations are subject to significant risks which increase the uncertainty inherent in the forward-looking statements. In light of this, the inclusion of forward-looking information should not be regarded as a representation or guarantee by us or any other person that our objectives or plans will be achieved.



OVERVIEW


We are an Internet-based provider of online delivery of films and books. Our Internet web site, www.KKRS.Net, is the portal to all of the proprietary content and web sites of our company. Our films are accessible by Internet users at access rates from 56K to broadband. We have over 200 on-demand movies available with full-screen scalability and television quality. We have over 250 books online available. The books feature re-sizable type, the ability to turn pages without scrolling and the ability to search by word or phrase. In addition, currently we offer other content at www.KKRS.Net, including co-branded auctions, classified ads and personal ads.


In addition to our Internet and e-commerce businesses, we design, manufacture and install ergonomic data control console systems for high-end computer command centers used by governmental agencies and Fortune 500 and other companies. Our customers include NASA, the Federal Bureau of Investigation, the United States Navy, Bank of America and Mitsubishi.

To date, substantially all of our revenues have been derived through sales of our data control console systems. Our current business strategy includes expansion of our data control console business and a significant emphasis upon developing and expanding our Internet and e-commerce businesses.

Our company is a Nevada corporation that was incorporated on November 1, 1991 and is the sole shareholder of Kanakaris InternetWorks, Inc. Kanakaris InternetWorks, Inc. is the sole shareholder of Desience Corporation. Our common stock is currently traded on the OTC Bulletin Board under the ticker symbol
"KKRS."


We currently derive substantially all of our revenue from the manufacture and sale of our data control console systems. We are in the process of further developing and expanding our Internet-related businesses with the goal of deriving revenues from these businesses in the near future. In that regard, we anticipate deriving revenue from, among other sources:

o rental and sales of online, downloaded and print books and other written materials; o movie subscription and pay-per-view fees; o classified and personal ad advertising fees; o fees based on the value of items auctioned through our Internet Lifestyle Network; and o sales of downloadable music.

We expect to continue to place significant emphasis upon the further development and expansion of our Internet and e-commerce businesses. We expect to increase our sales and marketing expenses in the near term. We intend to increase our marketing efforts substantially in order to develop awareness and brand loyalty for our Internet-based products and services and to generate revenues from those who visit our Internet sites. These marketing efforts will require a considerable effort on our part.

We also intend to continue to invest in the development of new products and services, complete the development of our products and services currently under development and expand our network.



RESULTS OF OPERATIONS



THREE MONTHS ENDED DECEMBER 31, 1999 AND 1998


Net sales decreased $133,667 or 58.8%, from $227,255 for the three months ended December 31, 1998 to $93,588 for the three months ended December 31, 1999. This decrease in total sales was primarily due to a decrease in sales of our OPCON Module System which the Company believes to be a result of normal fluctuations in the timing of orders for the Company`s products. The portion of net sales derived from our e-commerce businesses decreased $24,828 or 98.9%, from $25,106 for the three months ended September 30, 1998 to $278 for the three months ended December 31, 1999 due to a shift in our focus from establishing web sites to providing downloadable content. The portion of net sales derived from the sales of our data control console systems decreased $108,839 or 53.8%, from $202,149 for the three months ended December 31, 1998 to $93,310 for the three months ended December 31, 1999.

Gross profit decreased $76,509 or 74.8%, from $102,267 for the year ended December 31, 1998 to $25,758 for the three months ended December 31, 1999. The decrease in gross profit and corresponding decrease in gross margin from 45.0% to 27.5% was primarily due to the purchase of intangible movie rights for use on our web sites.

Total operating expenses increased $1,561,516 from $182,847 for the three months ended December 31, 1998 to $1,744,363 for the three months ended September 30, 1999. This increase in total operating expenses was primarily due to a significant increase in our consulting fees from $11,000 for the three months ended December 31, 1998 to $1,065,480 for the three months ended December 31, 1999 and an increase in marketing and investment costs and professional fees from $25, 201 for the three months ended December 31, 1998 to $427,888 for the three months ended December 31, 1999.



LIQUIDITY AND CAPITAL RESOURCES


From February 25, 1997 through December 31, 1999, we funded our operations primarily from equity investments through private placements of our securities, including our convertible debentures, proceeds from our line of credit and revenue generated from our operations.

As of December 31, 1999, we had a negative working capital of $1,696,627 and an accumulated deficit of $10,080,424. As of that date, we had $141,572 in cash and cash equivalents and $46,428 in accounts receivable. We also had obligations under our debentures in the amount of $957,500.

Cash used in our operating activities totaled $506,079 for the three months ended December 31, 1999 as compared to $40,908 for the three months ended December 31, 1998. Cash provided by our investing activities totaled $52,088 for the three months ended December 31, 1999 as compared to no cash provided by our investing activities for the three months ended December 31, 1998.

Cash provided by our financing activities was $440,500 for the three months ended December 31, 1999. $337,500 of that amount was raised through the issuance of our debentures. Cash provided by our financing activities was $57,125 for the three months ended December 31, 1998.

On February 25, 1999, we obtained a $5,000,000 revolving line of credit from Alliance Equities. On April 7, 1999, this line of credit was increased to $7,000,000. The February 25, 1999 agreement memorializing our arrangement with Alliance Equities provides that a definitive agreement is to be negotiated within seven days of that date. Prior to December 10, 1999, the parties had not finalized a definitive agreement and had operated under the February 25, 1999 agreement as amended by the April 7, 1999 amendment. On December 10, 1999, the parties executed a definitive agreement relating to the revolving line of credit. The agreement provides that our company may draw up to $500,000 per month on the line of credit, up to a maximum aggregate borrowing of $7,000,000. Interest accrues at the rate of 10% per annum, with unpaid principal and accrued interest due at maturity on December 10, 2001, unless the line of credit is terminated earlier by mutual agreement of the parties upon 30 days` prior written notice, is prepaid by us or is converted into shares of our common stock by us, by the lender or automatically upon the happening of certain events.

At any time or times prior to maturity, our company may convert any portion of the unpaid principal balance into shares of our common stock, or the lender may convert up to 50% of the unpaid principal balance, at a conversion price equal to the average market price for our common stock for the 30 days prior to the conversion. The unpaid principal balance of the line of credit is automatically convertible into shares of our common stock if we fail to pay the unpaid principal and interest due at maturity, at a conversion price equal to the average market price for our common stock for the 30 days prior to the conversion. Alternatively, the unpaid principal balance of the line of credit is automatically convertible into shares of our common stock if we close a financing in which the aggregate gross proceeds received by us equal or exceed $7,000,000, in which case a total of 50% of the entire original line of credit amount (which is the aggregate of amounts previously converted at that time plus non-converted amounts equaling a maximum of 50% of the entire original line of credit amount) will be converted at a conversion price equal to the average market price of our common stock as exists thirty days prior to such automatic conversion.

In January 2000, our convertible debentures that were outstanding as of December 31, 1999 were converted into an aggregate of 1,783,334 shares of our common stock. In addition, during February 2000 we issued $1,000,000 of our 10% Convertible Subordinated Debentures due February 1, 2001. The net proceeds of that offering, after the payment of finder`s fees and before the payment of other related expenses, was $870,000.


We believe that current and future available capital resources, revenues generated from operations, and other existing sources of liquidity, including our revolving line of credit with Alliance Equities, will be adequate to meet our anticipated working capital and capital expenditure requirements for at least the next 12 months. If, however, our capital requirements or cash flow vary materially from our current projections or if unforseen circumstances occur, we may require additional financing sooner than we anticipate. Failure to raise necessary capital could restrict our growth, limit our development of new products and services or hinder our ability to compete.


IMPACT OF YEAR 2000


We have not experienced any significant problems as a result of the arrival of the Year 2000. Although no significant problems have materialized to date, we will continue to monitor our systems (both IT and non-IT) throughout the Year 2000, including the proper recognition of the leap year.


Grüße Pagl

[Schlong]

Mit diesem Statement hast Du bzgl. Kanakaris sicher recht. Das reicht aber nicht, wie der Kursverlauf heute zeigt. Es ist zum heulen mit der verdammten Aktie. Nach meinen Informationen kann man sie von hier auch nur über den Kassenverein verkaufen, dauert angeblich bis zu vier Wochen, Kurs bis dahin völlig ungewiss, ohne Limit bei OTC BB zu ordern wäre der helle Wahnsinn. Also weiter abwarten. Kann jemand irgend etwas dazu sagen, wann die hier wieder gehandelt werden ?? Grüße, Schlong.

[pagl]

Hi Schlong

Zunächst solltest Du nur wegen dem gestrigen Tag das mit dem Verkaufen wieder schnell vergessen. Wenn Du Dich für KKRS entschieden hast, dann mußt Du mit solchen Kurssprüngen rechnen. Wenn Dir das zu viele Nerven kostet, dann hast Du gerade mit dieser Aktie einen falschen Griff getan. Am OTC-Markt herrschen die MM`s, und kurzfristig ist eine Kursmanipulation leicht zu bewerkstelligen.

Aber vergiß nicht, daß doch einiges Potential in KKRS drinsteckt.

Hier die neuste Meldung:

Wednesday February 16, 3:53 am Eastern Time
Company Press Release

SOURCE: Kanakaris Communications, Inc.

LMKI / Kanakaris to Premiere Fiber Channel Platform With Fastest Internet Streaming Media Ever This Saturday;
Rascals Comedy Club Event Starring Bobby Collins to Feature 400 Megabit Per Second Feed from www.KKRS.Net
LOS ANGELES, Feb. 16 /PRNewswire/ --- Kanakaris Communications, Inc. (OTC Bulletin Board: KKRS - news) and LMKI Communications (OTC Bulletin Board: LMKI - news) announced that they will introduce what LMKI`s CTO Bryan Turbow describes as, ``The fastest video streaming on the planet.`` The Kanakaris / LMKI webcast will be from the Rascals Comedy Club, Starring Bobby Collins, on Saturday February 19, 2000 at 11:00pm EST 9:00pm PST at www.KKRS.Net.

``What LMKI has created for the Kanakaris entertainment hub www.KKRS.Net is a fiber channel based platform transmitting data at 400 megabits per second throughout its infrastructure. This array offers video streaming faster than anyone else on the Internet,`` said Bryan Turbow, CTO, LMKI Communications.

``We are proud to joint venture with LMKI in a dramatic breakthrough that will speed up the delivery of video and audio over the Internet. This solidifies Kanakaris as the leading company offering the Hollywood entertainment industry a secure, pay-per-view, high quality Internet delivery of movies, TV shows, and original content,`` said Alex Kanakaris, CEO, Kanakaris Communications.

On Tuesday, February 15, Kanakaris ran a full-page ad on page 11 of the Hollywood Reporter. The company invited major studios, producers and content owners to participate in the revenue stream of pay-per-view online movie delivery at www.KKRS.Net.

``The world`s largest theater is now open. When do you want your movie to start?,`` states the ad. Kanakaris is actively acquiring film content of all genres for its web site.

Kanakaris successfully demonstrated pay-per-view online motion picture transactions at the recent NATPE television convention in New Orleans. The Company has received over 18 million hits in a month to its virtual theater web site, www.KKRS.Net. Over 225 full-length movies, scaleable to full monitor size, are now available to anyone connected to the Internet.

Quelle: http://biz.yahoo.com/prnews/000216/ca_kkrs_lm_1.html

Nur Mut! Wann KKRS wieder in Deutschland gelistet wird, kann Dir derzeit wahrscheinlich niemand sagen. Vielleicht hat Dich aber die Schwierigkeit des Verkaufes (in Wirklichkeit sollte das nicht so ein Problem sein) sogar davor bewahrt, vorschnell eine "Dummheit" zu begehen.

Grüße Pagl

[Schlong]

Tach auch,

die Begeisterung für Kanakaris kennt ja kaum mehr Grenzen, sieht so aus, als ob wir hier einen Privat-Thread führen können.

Wie dem auch sei, Dein Wort in Gottes Ohr, nur: Das höre ich schon seit 10 Monaten, solange bin ich in K. investiert, leider bislang ohne Gewinn.

Was solls, auf einen Monat mehr oder weniger kommt es jetzt auch nicht mehr an, Verkaufspläne habe ich jedenfalls auf Eis gelegt.

Schon mal was von Superconducter Techn. gehört ?

Mit freundlichem Gruss, Schlong

[Net_trader]

hallo beisammen,

ich wahr auch ne lange zeit in kana, hab aber inzwischen in usa verkauft (natürlich im + ) kana ist leider ein zockerwert.

Ich bin zwar grundsätzlich überzeugt, aber man kann sein geld auch schneller verdienen.....

wünsche euch noch viel glück mit kana....