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| | Business Summary: KMA Global Solutions International, Inc. manufactures and supplies electronic article surveillance (EAS) solutions for the apparel, multimedia, sporting goods, and food and pharmaceutical industries, as well as for contract manufacturers worldwide. | | | Address
5570A Kennedy Road
Mississauga
, Ontario L4Z 2A9
Phone: 905-568-5220
Fax: 905-568-4446
Website: http://www.kmaglobalsolutions.com
| | Auditor |
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McGovern, Hurley, Cunningham
| | Transfer Agent |
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American Registrar & Transfer Co.
| Employees: 3
ShareHolders: 21 | Founded: 2006
Domicile: Nevada | | | |
| | KMA Global Solutions International, Inc. manufactures and supplies electronic article surveillance (EAS) solutions for the apparel, multimedia, sporting goods, and food and pharmaceutical industries, as well as for contract manufacturers worldwide. The company's EAS solutions include sensor tags and labels for protection against retail merchandise theft. Its source tagging solutions product line consists of Dual Tag and Triple Tag products that are integrated into automated production processes and applied in primary packaging or on the product. The company's sew-on source tagging solutions product line includes Original NEXTag, NEXTag Slimline, NEXTag Jean, and NEXTag Woven, which provide manufacturers of soft-goods with an EAS solution within retailer guidelines and located on the particular garment. Its drop-in source tagging solutions product line comprises Original NEXTag, and NEXTag limlineTyvek, which are EAS tagging solutions that are placed loose inside the garment pockets or empty battery compartments in items requiring batteries. KMA Global's attachable source tagging solutions consist of Wrap Tags for use in various applications, including electrical cords, footwear, fishing rods, plumbing, and other hard good items; luggage tags for `swift-attached' applications; and Logo Tag that is used in various applications, including branded apparel, children and infant apparel, footwear, and sunglasses. Its adhesive source tagging solutions product line comprises Meat Tag for packaged meat or frozen food applications; and Foamback Tag, which maintains sensor functions in metallic applications. KMA Global's custom source tagging solutions product line includes customized products to address source tagging requirements, such as limited size or space, concave surfaces, or microwave environments. In addition, it distributes Sensormatic EAS labels. The company was founded in 1996 and is headquartered in Mississauga, Canada. | | History: INCORPORATED in Nevada Mar. 9, 2006, and on Mar. 10, 2006, merged Espo's Ltd., a New York concern incorporated on Sept. 7, 2001. Pursuant to the merger, each of the 2,709,223 outstanding Common shares of Espo's Ltd. was converted into one share of the company's Common.
Pursuant to an agreement entered into on Mar. 15, 2007, the company acquired Canadian based KMA Global Solutions Inc. in exchange for 34,244,800 shares of the company's Common stock. In connection with the acquisition, the company formed KMA Global Solutions, LLC, a Nevada limited liability company, and subsequently issued 1,700,000 shares of its Common stock in exchange for 100% of its membership interests. | | | | Subsidiaries: |
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KMA Global Solutions Inc.
KMA Global Solutions LLC
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Management
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| Officers | Position |
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| Jeffrey D. Reid | Chairman, President, Chief Financial Officer & Chief Executive Officer | | Normand Nowlan | Chief Operating Officer | | William Randal Fisher | Secretary & Treasurer |
| | Directors |
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| Daniel K. Foster | | Michael McBride | | Jeffrey D. Reid | | | |
| | | | Capitalization as of 07/31/2007: | | | | | Authorized Shares | Outstanding Shares |
|---|
| Preferred $0.001 par | 25,000,000 | None | | Common $0.001 par | 175,000,000 | 58,783,319 |
| | | | LONG TERM DEBT: None. | | | | Common $0.001 par | | | |
Stockholders:
05/22/2007,
21.
| | PRINCIPAL STOCKHOLDERS: April 27, 2007, Jeffrey D. Reid owned or controlled 49.5% of the Common. | | | |
Transfer Agent: American Registrar & Transfer Co.
Salt Lake City
, UT | | | | OTC Bulletin Board( Primary): KMAG | | | | Exchange | Year | High | Low |
|---|
| OTC Bulletin Board | 2007 | 1.3600 | 0.0500 | | OTC Bulletin Board | 2006 | 5.0000 | 0.0118 |
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| | | | DIVIDENDS: Common $0.001 par: No cash.
Common split 17-for-1, Mar. 17, 2006. | | | | | |
| | Annual Report |
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| | | Income Statement | |
| 2008 | 2007 | 2006 |
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| SALES | 4,877,606 | 6,630,884 | 6,503,864 | | COST OF SALES |
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| | Inventories, beginning of year | 303,117 | 452,055 | 616,157 | | Purchases | 3,671,536 | 5,193,641 | 4,924,606 | | Less: Inventories, end of year | 302,934 | 303,117 | 452,055 | | GROSS MARGIN | 1,205,887 | 1,288,305 | 1,415,156 | | SELLING, GENERAL AND ADMINISTRATIVE |
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| | EXPENSES | 3,062,286 | 2,385,405 | 1,305,298 | | (Loss) income before income taxes | (1,856,399) | (1,097,100) | 109,858 | | Income taxes - future | - | (360,697) | 14,676 | | NET (LOSS) INCOME FOR THE YEAR | (1,856,399) | (736,403) | 95,182 | | (LOSS) INCOME PER SHARE |
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| | Basic | (0.03) | (0.02) | 0.003 | | Diluted | (0.03) | (0.02) | 0.003 | | Weighted average number of common shares | 61,989,487 | 40,423,345 | 32,136,800 |
| | | | Balance Sheet | |
| 2008 | 2007 |
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| ASSETS |
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| | CURRENT |
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| | Cash | 73,149 | 22,710 | | Accounts receivable | 84,045 | 287,701 | | Inventories | 302,934 | 303,117 | | Prepaid expenses | 118,964 | 340,210 | | TOTAL CURRENT ASSETS | 579,092 | 953,738 | | DEPOSITS ON EQUIPMENT AND PATENTS | 278,707 | 57,342 | | EQUIPMENT AND PATENTS | 925,241 | 641,178 | | FUTURE INCOME TAXES | 393,925 | 335,958 | | DEFERRED COSTS | - | 212,404 | | Total assets | 2,176,965 | 2,200,620 | | LIABILITIES and Shareholder's Equity |
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| | CURRENT |
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| | Accounts payable and accrued liabilities | 1,161,791 | 1,062,297 | | Unearned revenue | 60,364 | - | | Current portion of capital lease obligation | - | 55,804 | | TOTAL CURRENT LIABILITIES | 1,222,155 | 1,118,101 | | ADVANCES FROM SHAREHOLDER | 136,498 | 87,053 | | CAPITAL LEASE OBLIGATION | - | 207 | | SHAREHOLDERS' EQUITY |
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| | Com. stk. | 75,333 | 42,066 | | ADDITIONAL PAID-IN CAPITAL | 4,845,029 | 729,098 | | SUBSCRIPTIONS RECEIVABLE | (2,730,000) | - | | SHARES TO BE ISSUED | - | 826,485 | | ACCUMULATED OTHER COMPREHENSIVE INCOME (Note 8) | (11,230) | 51,031 | | WARRANTS | 1,149,000 | - | | (DEFICIT) | (2,509,820) | (653,421) | | Total liabs. and equity | 2,176,965 | 2,200,620 |
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| | Interim Report
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| | | Data Not Available | | | | | | | | | |
| | Pro Forma Report
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| | | Data Not Available | | | | | | | | | |
| | Quarterly Report Information
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| | | Quarterly Revenue, US$ |
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| Year | Quarter | Revenue | | 2008 |
1 | 1,120,000 | | 2008 |
Full Year
| 4,880,000 | | 2007 |
4 | 980,000 | | 2006 |
Full Year
| 6,600,000 |
| | | | | | Quarterly Net Income, US$ |
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| Year | Quarter | Revenue | | 2008 |
1 | (200,000) | | 2007 |
4 | (880,000) |
| | | | | | Quarterly EPS, US$ |
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| Year | Quarter | Revenue | | 2008 |
1 | Nil | | 2008 |
Full Year
| (.03) | | 2007 |
4 | (.01) | | 2006 |
Full Year
| (.02) |
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