Wednesday, January 20, 2010

SIBN Has Solid Trading Day

Shares of SIBN rose 225% on 300,000 shares traded. The company has no revenue, and is losing money. Additionally, the company has 500,000 in debt and 700 in cash.

I found this information in the most recent 10Q for SIBN

previously loaned to KNG, and $1,406 of property and equipment, net.
We had total liabilities of $2,206,752 as of September 30, 2009, which were solely current liabilities and which included $505,211 of accounts payable to related party stockholders in connection with those shareholders paying certain of our expenses from the period between January 1, 2003 to September 30, 2009; $67,316 of accounts payable to Baltic in connection with a $29,000 loan advanced to the Company from Baltic and certain other expenses owed to Baltic; $565,013 of accounts payable to others for advisory and professional services rendered; and $1,069,212 of accrued payroll, which included $607,500 payable to our Chief Executive Officer, David Zaikin, of which $360,000 was accrued in 2007 and 2008, and $112,500 which was owed to Mr. Zaikin for services rendered prior to September 2005, at which time he agreed to stop accruing salary until January 2007, when he provided us notice of his intent to once again begin accruing salary until such time as we have sufficient funds to pay such accrued salary, $218,537 payable to our Chief Financial Officer, Elena Pochapski, and $69,242 of accrued salary payable to our former Chief Executive Officer, Shakeel Adam.

We had negative working capital of $2,205,438 and a total pre-development and development stage accumulated deficit of $15,341,744 as of September 30, 2009.

Because our cumulative losses associated with the operations of ZNG exceeded our investment as of the date of the Joint Venture, ZNG, Ltd. is carried on our balance sheet at $-0- as of September 30, 2009. Our investment in ZNG, Ltd. will exceed $-0- at such time as ZNG, Ltd. has cumulative earnings sufficient to repay all loans to Baltic as provided in the Joint Venture, if ever.

As of September 30, 2009, the Company owns a 44% interest in KNG. The Company’s investment in KNG is recorded on the equity method of accounting effective October 1, 2008. After careful consideration of the current financial position of KNG, the Company applied an impairment charge to the value of the investment in KNG which resulted in carrying it at zero value.
We had $14,592 of net cash flows from operating activities for the nine months ended September 30, 2009, which was attributable to adjustments to reconcile $485,355 of net loss, offset by $461,535 of accounts payable and accrued expenses, $458 of depreciation and amortization, $37,989 of common stock and warrants issued for services and increased by $35 of prepaid expenses and other assets.

In connection with the Joint Venture (described under "Joint Venture," above), the Company historically received management fees, which varied from $25,000 to $85,000 per month. Due to the “transition period” of the Joint Venture’s exploration activities, no management fees were paid during the year ended December 31, 2008 or the nine months ended September 30, 2009, and the Company does not anticipate receiving any such fees moving forward. If the Company does not receive any management fees moving forward, the Company anticipates that its stockholders and management will continue to provide financing for the Company, of which there can be no assurance.

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