Posted - 2007.06.04 21:46:00 - [1]

 

May was very good for VNRI. So far things are looking great for a very possitive June as well.

Summary of Operations so far:
We deployed an additional 3 labs on our POS early in the month. This leaves room for 1 additional lab on the POS before a second tower is launched. Overall, ME slots saw approximately 75% usage for the month, and although usage tapered off towards the month, we expect to see demand pick up again as additional clients are aquired. We also picked up a very profitable BPC contract, and we are maximizing profit from this contract while it lasts.
Manufacturing operations have slowed down this month, partially due to RL concerns, but mostly due to significantly reduced profit margins on many of the items we were building. Manufacturing efforts will certainly be building up again as additional items are found to bring onto the production lines.

Financials as of May 31:
Balance Sheet
Current Assets (in millions):
Cash: 260
Escrow: 34
Receivables: 0
POS fuel reserve: 101
Production materials: 391
Sales inventory: 88

Fixed Assets:
POS components: 1,502
BPO Library: 240

Total Assets: 2,635

Liabilities (in millions):

Office Rents: 23

Net Assets: 2,612


Equity:
Shareholder equity: 2,018
Retained Earnings: 428
Dividends Paid (Salarys and shareholders): 166

Income Statement (in Millions):
Revenue:
POS Slot rentals: 308
BPC Sales: 189
Manufacturing Sales: 229
Total Revenue: 726

Expenses:
POS Fuel: 210
Cost of goods sold: 160
Offices: 23
Alliance Dues: 20
Total Expenses: 394

Gross Profit: 332

Earnings per share: 1,644 isk/share


Dividends for May were paid on June 5th at a rate of $411.17 per share on all outstanding shares, 4.11% of the IPO value of 10k isk per share.


Shareholder information:
VNRI has a total of 800,000 shares authorized. 200,000 shares have been sold in VNRI's opening IPO. 1,800 shares were given as a startup bonus to Alewin. There are currently no plans to distribute any of the remaining shares. Total shares outstanding: 201,800

Salary and dividend policies:
All dividends are paid on the 5th of each month. Dividends and Salaries are based on gross profit for the month. All dividends are based strictly on outstanding shares at the time of dividend payment. 25% of the gross profit is paid out as dividend to shareholders. 25% of the gross profit is paid as salary to corp members. The remaining 50% of gross profit is retained for future growth. These numbers may be adjusted from time to time to ensure the stability of the company. Any such changes will have as much notification provided as is practical.

Future:
VNRI is in the process of designing both internal and external websites. The internal website will primarily be for production management and will help to more accurately track income and expenses for our financial statements.
We are working towards the deployment of a second POS tower as the demand for research slots increases. At this time, VNRI does not have the required standings for a second launch, but I am working to bring my own standings up for this launch instead of requiring paying for standings services a second time.

Accounting question:
While I do understand the purpose for all of the information I am providing, I make no claims to be an accountant, and I'm trying to find the best way to handle the following piece of information. On my Balance Sheet, I have the Shareholders Equity and Retained Earnings. Should I be effectively rolling the retained earnings into the shareholder equity at the beginning of each month - effectively raising Shareholder Equity to the previous months total net assets after dividends? Thus far I've kept shareholder equity equal to the value of the outstanding shares, which seems correct, at least while I still had IPO shares for sale. I believe retained earnings does need to be rolled into another field, but I'm not sure what the correct field to roll it into would be. Thank you in advance for your assistance in this matter.

April financial statements for VNRI