News
11/16/09 | Press Release
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION
OVERVIEW AND OUTLOOK
Prime Star Group, Inc. (formerly American Water Star, Inc.) was started as a company which developed, marketed, sold, and distributed bottled water with four branded beverages: Hawaiian Tropic, Geyser Fruit, Geyser Sport, and Geyser Fruta. The products were orientated to the health conscious consumer looking for an alternative to products containing high sugar and caffeine levels. Our customers included single and multi-store retail operations, governmental agencies, and distributors who in turn sell to retail stores, convenience stores, schools and other outlets. In addition, we branched into the private label and co-packing industries in the fourth quarter of 2004.
We initially sold our products exclusively through distributors who then supplied our products to retailers. Although we continued to use distributors, we also expanded our sales effort through sales directly to retailers.
We had hoped the private label and co-packaging of beverages for other corporations would allows us to avoid costly marketing expenses that would otherwise be associated with brand development, launch, and continuing promotions. We anticipated the distribution of our sales over the next couple of years to be approximately 50% to 60% on private labeling.
We have signed distribution agreements with Vintners' Private Reserve, Hemp C Iced Tea and P/R Private Reserve to exclusively distribute their Trademarked Products. Our Wild Grill Foods, Inc. wholly owned subsidiary has begun production and shipment of product orders, as of October 1, 2009.
CURRENT OPERATIONS
We had no revenues for either the three months ended Sept 30, 2009 and 2008 or the nine months ended Sept 30, 2009 and 2008.
For the three months and nine months ended Sept 30, 2009, we incurred general and administrative expenses of $352,350 and 2,677,146.20 respectively and related party expenses of $6,033 and 37,833 respectively for a total of $358,383 and $2,678,675.90 respectively. This compares with general and administrative expenses of $125,000 and related party expenses of $60,000 for the corresponding period of the prior year. As a result of the foregoing, the company had a loss for the three months ended Sept. 30, 2009 of 358,383 and nine months of 2,678,675.90 compared to a no loss for the three months ended Sept., 2008 and $105,000 for the nine months ended Sept. 30, 2008.
The Company has expended much of its time and efforts on research, development and procuring production facilities to begin production of its existing brand lines as well as introducing several new and vibrant products for our drink and specialty food divisions.
As of Sept 30, 2009, we had a working deficit of $8,703,659 compared to working deficit of $8,609,960 as of December 31, 2008. As of Sept 30, 2009, we had $6,033 cash on hand, 311,783 of assets and a working capital deficiency of $8,703,659.
OFF-BALANCE SHEET ARRANGEMENTS
We do not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to investors.
GOING CONCERN
The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. As shown in the financial statements, during the periods ended Sept. 30, 2009 and 2008, the Company incurred losses from discontinued operations of $2,678,675.90 and $105,000, respectively. The financial statements do not include any adjustments relating to the recoverability and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.
It is the intent of management and significant stockholders to provide sufficient working capital necessary to support and preserve the integrity of the corporate entity. However, no form commitments or arrangements to advance or loan funds to the Company or repay any such advances or loans exist. However, there is no legal obligation for either management or significant stockholders to provide additional future funding.
« back
Form 10-Q for PRIME STAR GROUP INC
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION
OVERVIEW AND OUTLOOK
Prime Star Group, Inc. (formerly American Water Star, Inc.) was started as a company which developed, marketed, sold, and distributed bottled water with four branded beverages: Hawaiian Tropic, Geyser Fruit, Geyser Sport, and Geyser Fruta. The products were orientated to the health conscious consumer looking for an alternative to products containing high sugar and caffeine levels. Our customers included single and multi-store retail operations, governmental agencies, and distributors who in turn sell to retail stores, convenience stores, schools and other outlets. In addition, we branched into the private label and co-packing industries in the fourth quarter of 2004.
We initially sold our products exclusively through distributors who then supplied our products to retailers. Although we continued to use distributors, we also expanded our sales effort through sales directly to retailers.
We had hoped the private label and co-packaging of beverages for other corporations would allows us to avoid costly marketing expenses that would otherwise be associated with brand development, launch, and continuing promotions. We anticipated the distribution of our sales over the next couple of years to be approximately 50% to 60% on private labeling.
We have signed distribution agreements with Vintners' Private Reserve, Hemp C Iced Tea and P/R Private Reserve to exclusively distribute their Trademarked Products. Our Wild Grill Foods, Inc. wholly owned subsidiary has begun production and shipment of product orders, as of October 1, 2009.
CURRENT OPERATIONS
We had no revenues for either the three months ended Sept 30, 2009 and 2008 or the nine months ended Sept 30, 2009 and 2008.
For the three months and nine months ended Sept 30, 2009, we incurred general and administrative expenses of $352,350 and 2,677,146.20 respectively and related party expenses of $6,033 and 37,833 respectively for a total of $358,383 and $2,678,675.90 respectively. This compares with general and administrative expenses of $125,000 and related party expenses of $60,000 for the corresponding period of the prior year. As a result of the foregoing, the company had a loss for the three months ended Sept. 30, 2009 of 358,383 and nine months of 2,678,675.90 compared to a no loss for the three months ended Sept., 2008 and $105,000 for the nine months ended Sept. 30, 2008.
The Company has expended much of its time and efforts on research, development and procuring production facilities to begin production of its existing brand lines as well as introducing several new and vibrant products for our drink and specialty food divisions.
As of Sept 30, 2009, we had a working deficit of $8,703,659 compared to working deficit of $8,609,960 as of December 31, 2008. As of Sept 30, 2009, we had $6,033 cash on hand, 311,783 of assets and a working capital deficiency of $8,703,659.
OFF-BALANCE SHEET ARRANGEMENTS
We do not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to investors.
GOING CONCERN
The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. As shown in the financial statements, during the periods ended Sept. 30, 2009 and 2008, the Company incurred losses from discontinued operations of $2,678,675.90 and $105,000, respectively. The financial statements do not include any adjustments relating to the recoverability and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.
It is the intent of management and significant stockholders to provide sufficient working capital necessary to support and preserve the integrity of the corporate entity. However, no form commitments or arrangements to advance or loan funds to the Company or repay any such advances or loans exist. However, there is no legal obligation for either management or significant stockholders to provide additional future funding.
« back
| Last | Change | |
|---|---|---|
| PSGI |
