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| | Business Summary: Left Behind Games, Inc. engages in the development, publishing, and distribution of video games and related products in the United States. The company develops its video game products based on the Left Behind series of novels and products. | | | Address 25060 Hancock Ave Ste 103
Murrieta
, CA 92562-5959
Phone: 951-894-6597
Website: http://www.leftbehindgames.com
| | Auditor |
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KMJ Corbin and Company
| | Transfer Agent |
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Columbia Stock Transfer Co.
| Employees: 16 ShareHolders: 1330 | Founded: 1961 Domicile: Washington | | | |
| | Left Behind Games, Inc. engages in the development, publishing, and distribution of video games and related products in the United States. The company develops its video game products based on the Left Behind series of novels and products. Its primary product includes LEFT BEHIND: Eternal Forces, a real time strategy game played by one person or online by up to eight players on personal computers. The company sells its products through a direct-to-store distribution channel or through distributors to Christian booksellers association and inspirational marketplaces. It markets its products in North America, Australia, Canada, Singapore, and South Africa. Left Behind Games, Inc. was founded in 2002 and is based in Murrieta, California. | | History: INCORPORATED in Washington Apr. 3, 1961, as Vermilion Gold, Inc.; name changed to Bonanza Gold, Inc. Aug. 22, 1962, and to Left Behind Games Inc. Apr. 25, 2006. On Feb. 7, 2006, the company acquired Left Behind Games Inc., a Delaware corporation organized on Aug. 27, 2002, for 12,456,538 Common shares and 3,586,246 Preferred shares. | | | | Subsidiaries: |
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Left Behind Games Inc. (Delaware)
| | | | | | Capital Expenditures, thousand. US Dollars |
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| Year | Amount | | 2007 | 414 |
| | | | | | Research and Development Expenditures, thousand. US Dollars |
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| Year | Amount | | 2007 | 1,209 |
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Management
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| Officers | Position |
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| Troy A. Lyndon | Chairman & Chief Executive Officer | | James B. Frakes | Chief Financial Officer & Investor Relations Contact |
| | Directors |
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| Troy A. Lyndon | | Michael Knox | | Leslie Bocskor | | Thomas Axelson | | Ray Dixon | | Jeffrey Frichner | | | |
| | | | Capitalization as of 12/31/2007: | | | | | Authorized Shares | Outstanding Shares |
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| Common $0.001 par | 200,000,000 | 93,338,293 | | Preferred $0.001 par | 10,000,000 | 3,586,245so2 |
| | | | LONG TERM DEBT: None. | | | | Common $0.001 par | | | |
Stockholders:
07/12/2007,
1330.
| | PRINCIPAL STOCKHOLDERS: July 12, 2007, Jeffrey S. Frichner owned or controlled 8.5% of the Common and Troy A. Lyndon 7.9%. | | | |
Transfer Agent: Columbia Stock Transfer Co.
Coeur d'Alene
, ID | | | | OTC Bulletin Board( Primary): LFBG | | | | Exchange | Year | High | Low |
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| OTC Bulletin Board | 2007 | 2.4500 | 0.0200 | | OTC Bulletin Board | 2006 | 3.1000 | 2.8200 | | OTC Bulletin Board | 2005 | 0.3600 | 0.1200 | | OTC Bulletin Board | 2004 | 0.1500 | 0.1000 |
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| | | | DIVIDENDS: Common $0.001 par: No cash.
Common reverse split 1-for-4, Feb. 7, 2006. | | | | | |
so2Consists of Series A Preferred. Liquidation preference, $188,500. Series A is convertible into Common on a one-for-one basis. | |
| | Annual Report |
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| | | Income Statement | |
| 2008 | 2007 |
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| (Restated) |
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| | * |
| (SeeNote2) | | Net revenues | $251,405 | $292,190 | | Costs and |
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| | expenses: |
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| | Cost of sales |
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| | - product |
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| | costs | 446,704 | 303,936 | | Cost of sales |
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| | - intellectual |
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| | property |
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| | licenses | 7,775 | 552,326 | | Selling, g |
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| | eneral and |
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| | administrative | 5,040,218 | 24,416,356 | | Product |
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| | development | 309,914 | 1,209,154 | | Total costs |
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| | and expenses | 5,804,611 | 26,481,772 | | Operating loss | (5,553,206) | (26,189,582) | | Other income |
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| | (expense): |
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| | Interest |
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| | expense | (637,566) | (77,526) | | Other income |
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| | (expense) | (32,524) | 2,348 | | Total other |
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| | expense, net | (670,090) | (75,178) | | Loss before |
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| | provision for |
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| | income taxes | (6,223,296) | (26,264,760) | | Provision for |
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| | income taxes | 4,000 | 800 | | Net loss | $(6,227,296) | $(26,265,560) | | Net loss |
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| | available to |
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| | common |
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| | stockholders |
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| | per common |
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| | share: |
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| | Basic and |
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| | diluted | $(0.08) | $(1.25) | | Weighted |
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| | average common |
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| | shares |
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| | outstanding: |
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| | Basic and |
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| | diluted | 76,681,517 | 21,069,797 | | See reports of independent registered public accounting firms and |
|
| | accompanying notes to consolidated financial statements |
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| | Operating Income As Calculated |
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| | Depr. and Amort. |
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| | Fixed Charges Coverage: |
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| | Available for Fixed Charges |
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| | Gross Fixed Charges |
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| | Fixed Charges Times Earnings |
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| | Fixed Charges Coverages and Preferred Dividends Times Earnings |
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| | Capital Expenditures |
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| | Research & Development Expenditures |
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| | | | Balance Sheet | |
| 2008 | 2007 |
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| ASSETS |
| (Restated) | | * |
| (SeeNote2) | | CURRENT ASSETS: |
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| | Cash | $2,695 | $14,965 | | Accounts receivable, net of allowances of $63,292 and $68,825 |
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| | as of March 31, 2008 and 2007, respectively | 830,374 | 862,621 | | Inventories, net of reserves of $306,060 and $25,834 |
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| | as of March 31, 2008 and 2007, respectively | 69,199 | 394,605 | | Debt issuance costs | 14,872 | 359,133 | | Prepaid royalties | 17,225 | -- | | Other prepaid expenses and current assets | 75,576 | 38,846 | | Total current assets | 1,009,941 | 1,670,170 | | Property and equipment, net | 216,872 | 368,313 | | Intangible assets, net | 18,375 | 43,441 | | Other assets | 52,372 | 52,373 | | * | $1,297,560 | $2,134,297 | | LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) |
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| | CURRENT LIABILITIES: |
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| | Accounts payable and accrued expenses | $2,608,438 | $2,039,672 | | Royalty payable | 250,000 | 250,000 | | Advances from related parties | 56,023 | 73,000 | | Notes payable, net | 604,240 | 395,056 | | Deferred income - product sales | 480,090 | 555,845 | | Deferred revenue | 100,323 | 100,323 | | Total current liabilities | 4,099,114 | 3,413,896 | | Convertible zero coupon notes, net of discount of $210,422 |
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| | at March 31, 2008 | 8,641 | -- | | Deferred rent | 1,427 | 5,257 | | Total liabilities | 4,109,182 | 3,419,153 | | Commitments and contingencies |
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| | Stockholders' equity (deficit): |
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| | Series A preferred stock, $0.001 par value; 10,000,000 shares authorized; 3,586,245 |
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| | shares issued and outstanding; liquidation preference of $188,500 as of |
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| | March 31, 2008 and 2007, respectively | 3,586 | 3,586 | | Common stock, $0.001 par value; 200,000,000 shares authorized; 138,433,090 and 35,904,898 shares |
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| | issued and outstanding as of March 31, 2008 and 2007 | 138,374 | 35,842 | | Shareholder notes receivable | (70,000) | -- | | Additional paid-in-capital | 39,156,427 | 34,488,429 | | Accumulated deficit | (42,040,009) | (35,812,713) | | Total stockholders' equity (deficit) | (2,811,622) | (1,284,856) | | * | $1,297,560 | $2,134,297 | | See reports of independent registered public accounting firms and |
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| | accompanying notes to consolidated financial statements |
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| | Net Working Capital |
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| | Equity per Share |
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| | Depr. and Amort. Reserve |
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| | Preferred Shares Issued |
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| | Common Shares Issued |
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| | Treasury Shares - Preferred |
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| | Treasury Shares - Common |
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| | Interim Report
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| | | Data Not Available | | | | | | | | | |
| | Pro Forma Report
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| | | Data Not Available | | | | | | | | | |
| | Quarterly Report Information
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| | | Quarterly Revenue, US$ |
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| Year | Quarter | Revenue | | 2008 |
1 | 110,000 | | 2008 |
2 | 30,000 | | 2008 |
3 | 30,000 | | 2008 |
4 | 80,000 | | 2008 |
Full Year
| 250,000 | | 2007 |
Full Year
| 770,000 |
| | | | | | Quarterly Net Income, US$ |
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| Year | Quarter | Revenue | | 2007 |
1 | (1,320,000) | | 2007 |
2 | (1,400,000) | | 2007 |
3 | (1,130,000) | | 2007 |
4 | (2,380,000) | | 2007 |
Full Year
| (26,080,000) | | 2006 |
Full Year
| (8,609,000) | | 2005 |
Full Year
| (490,000) |
| | | | | | Quarterly EPS, US$ |
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| Year | Quarter | Revenue | | 2008 |
1 | (.03) | | 2008 |
2 | (.02) | | 2008 |
3 | (.01) | | 2008 |
4 | (.02) | | 2008 |
Full Year
| (.08) | | 2007 |
Full Year
| (1.24) | | 2006 |
Full Year
| (.85) |
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