Utah
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13-3709558
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|
(State
or Other Jurisdiction of Incorporation of Organization)
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(I.R.S.
Employer Identification No.)
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Transitional
Small Business Disclosure
Format: Yes
¨
No x
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Page
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||
PART
I
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FINANCIAL
INFORMATION
|
1
|
Item
1.
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Unaudited
Condensed Consolidated Financial Statements
|
1
|
Item
2.
|
Management’s
Discussion and Analysis or Plan of Operation
|
8
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Item
3.
|
Controls
and Procedures
|
12
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PART
II
|
OTHER
INFORMATION
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13
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Item
1.
|
Legal
Proceedings
|
13
|
Item
2.
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Sales
of Unregistered Securities and Use of Proceeds.
|
13
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Item
3.
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Defaults
Upon Senior Securities.
|
13
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Item
4.
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Submission
of Matters to a Vote of Security Holders.
|
13
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Item
5.
|
Other
Information
|
14
|
Item
6.
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Exhibits
|
14
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March
31, 2008
|
||||
ASSETS
|
||||
Current Assets
|
||||
Cash and cash equivalents
|
$
|
273
|
||
Total current assets
|
273
|
|||
Security deposits
|
85
|
|||
TOTAL ASSETS
|
$
|
358
|
||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||
Current Liabilities
|
||||
Accounts payable
|
$
|
159
|
||
Accrued expenses
|
167
|
|||
Total current liabilities
|
326
|
|||
Commitments and Contingencies
|
||||
STOCKHOLDERS' EQUITY
|
||||
Preferred stock, Series A , no par value, 10,000,000
|
||||
authorized shares; none issued and outstanding
|
||||
Common stock, no par value, 50,000,000 authorized shares;
|
0
|
|||
25,247,006 issued and outstanding
|
21,366
|
|||
Accumulated deficit
|
(21,334
|
)
|
||
Total stockholders' equity
|
32
|
|||
$
|
358
|
|||
Three
Months Ended
|
Six
Months Ended
|
||||||||||||
March
31,
|
March
31,
|
||||||||||||
2008
|
2007
|
2008
|
2007
|
||||||||||
NET REVENUES
|
$
|
-
|
$
|
130
|
$
|
-
|
$
|
592
|
|||||
OPERATING EXPENSES (INCOME)
|
|||||||||||||
Cost of revenues
|
-
|
437
|
-
|
1,028
|
|||||||||
Selling, general and administrative costs
|
96
|
867
|
339
|
1,637
|
|||||||||
Research and development costs
|
-
|
451
|
-
|
809
|
|||||||||
Gain on sale of assets and settlements
|
-
|
-
|
(629
|
)
|
-
|
||||||||
Total operating expenses (income)
|
96
|
1,755
|
(290
|
)
|
3,474
|
||||||||
Income (loss) from operations
|
(96
|
)
|
(1,625
|
)
|
290
|
(2,882
|
)
|
||||||
OTHER INCOME
|
|||||||||||||
Interest income, net
|
4
|
-
|
5
|
-
|
|||||||||
4
|
-
|
5
|
-
|
||||||||||
Net income (loss)
|
$
|
(92
|
)
|
$
|
(1,625
|
)
|
$
|
295
|
$
|
(2,882
|
)
|
||
Net income (loss) per common share
|
|||||||||||||
Basic
|
$
|
(0.00
|
)
|
$
|
(0.00
|
)
|
$
|
0.00
|
$
|
(0.00
|
)
|
||
Diluted
|
$
|
(0.00
|
)
|
$
|
(0.00
|
)
|
$
|
0.00
|
$
|
(0.00
|
)
|
||
Weighted average number of common shares outstanding
|
|||||||||||||
Basic
|
25,247
|
1,898
|
25,247
|
1,767
|
|||||||||
Diluted
|
25,247
|
1,898
|
30,858
|
1,767
|
|||||||||
Six
Months Ended
|
|||||||
March
31,
|
|||||||
2008
|
2007
|
||||||
Cash
flows from operating activities
|
|||||||
Net
Income (loss)
|
$
|
295
|
$
|
(2,882
|
)
|
||
Adjustments
to reconcile net income (loss) to
|
|||||||
net
cash used in operating activities:
|
|||||||
Depreciation
|
-
|
117
|
|||||
Stock
based compensation charge
|
-
|
4
|
|||||
Gain
from sale of assets
|
(381
|
)
|
-
|
||||
Settlements
and forgiveness of indebtedness
|
(248
|
)
|
-
|
||||
Restructuring
charge (lease), net
|
84
|
-
|
|||||
Changes
in operating assets and liabilities:
|
|||||||
Accounts
receivable, net
|
-
|
(438
|
)
|
||||
Inventories
|
-
|
(43
|
)
|
||||
Prepaid
expenses and other current assets
|
3
|
27
|
|||||
Accounts
payable
|
(48
|
)
|
248
|
||||
Accrued
expenses
|
(89
|
)
|
(205
|
)
|
|||
Net
cash used in operating activities
|
(384
|
)
|
(3,172
|
)
|
|||
Cash
flows from investing activities
|
|||||||
Purchases
of machinery and equipment
|
-
|
(231
|
)
|
||||
Payment
of security deposits
|
-
|
(9
|
)
|
||||
Proceeds
from sale of assets
|
460
|
-
|
|||||
Net
cash provided by (used in) investing activities
|
460
|
(240
|
)
|
||||
Cash
flows from financing activities
|
|||||||
Repayment
of bridge loans
|
-
|
(815
|
)
|
||||
Net
proceeds from issuance of preferred stock
|
-
|
6,740
|
|||||
Proceeds
from exercise of stock options
|
-
|
-
|
|||||
Net
cash provided by financing activities
|
-
|
5,925
|
|||||
Net
increase in cash and cash equivalents
|
76
|
2,513
|
|||||
Cash
and cash equivalents, beginning of period
|
197
|
34
|
|||||
Cash
and cash equivalents, end of period
|
$
|
273
|
$
|
2,547
|
|||
Supplemental
schedules of non-cash investing and financing activities
|
|||||||
Conversion
of preferred stock into common stock
|
$
|
-
|
$
|
6,740
|
Warrants
|
13,075,935
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|||
Total
|
13,075,935
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Present
value of future lease payments, net
|
$
|
129,000
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||
Customer
claims
|
15,000
|
|||
Accrued
professional fees
|
2,000
|
|||
Other
|
21,000
|
|||
$
|
167,000
|
Restructuring
Reserve
|
Accrual
Adjustment
|
Paid
or
Settled
|
Restructuring
Reserve
|
||||||||||
at
September 30, 2007
|
At
March 31, 2008
|
||||||||||||
Leases
|
$
|
161,000
|
$
|
164,000
|
$
|
91,000
|
$
|
234,000
|
|||||
Customer
Claims
|
$
|
195,000
|
$
|
180,000
|
$
|
15,000
|
|||||||
$
|
356,000
|
$
|
164,000
|
$
|
271,000
|
$
|
249,000
|
Gain
on sale of assets
|
$
|
381,000
|
||
Reversal
of accrued claims (a)
|
225,000
|
|||
Vendor
settlements (b)
|
23,000
|
|||
$
|
629,000
|
|||
·
|
The
principal transaction involves the sale by BBM of substantially
all of its
assets (primarily intellectual property and technology) of its
sole
subsidiary Broadband.
|
·
|
Upon
completion of the sale, BBM will continue on as an inactive public
company
seeking various merger, acquisition or other reorganization
possibilities.
|
1.
|
There
is no assurance that the Company can continue as an inactive public
reporting entity. BBM will not be able to sustain itself and pay
the
required accounting, auditing or other reporting costs necessary
to
continue as a public entity for the indefinite future. Further,
there is
no assurance or warranty that additional interim funding can be
obtained
to maintain the company as a public entity after its reserve funds
are
exhausted.
|
2.
|
Future
regulations by various state or federal securities agencies, such
as the
State of Utah, Division of Securities or the SEC could make it
difficult
or impossible for the Company to continue as an inactive public
Company
through adoption of various administrative regulations and filing
requirements which make it impossible or very difficult for the
Company to
continue as a non-operating public
company.
|
3.
|
Only
minimal management, time and expertise is being devoted to the
operation
of the Company now that it is inactive. Initial reviews of merger
and
acquisition opportunities are being completed by the Board, who
have
committed to devote their best efforts to search out and attempt
to locate
various merger or acquisition candidates or proposals for the Company.
There is no assurance that the Board will be successful in ongoing
efforts
to find a merger or acquisition
candidate.
|
4.
|
Any
completion of a merger or acquisition agreement would be approved
by the
existing controlling shareholders. Further, it is likely that existing
shareholders will incur a significant dilution to their aggregate
shareholder percentages.
|
5.
|
Any
completed merger or acquisition may result in new management being
appointed to control the Company and a new business activity being
selected over which the existing shareholders would essentially
have no
control or meaningful voice, other than the potential exercise
of
dissenting shareholder rights under Utah law under certain circumstances
but even then no under all merger or acquisition
structures.
|
6.
|
The
Company will have no ongoing revenues or income to support it during
this
interim period.
|
2008
|
2007
|
Increase
(Decrease)
|
||||||||
Net
Revenues
|
-
|
130,000
|
(130,000
|
)
|
||||||
Cost
of Revenues
|
-
|
(437,000
|
)
|
437,000
|
||||||
Selling,
General & Administrative Expense
|
(96,000
|
)
|
(867,000
|
)
|
771,000
|
|||||
Research
& Development
|
-
|
(451,000
|
)
|
451,000
|
||||||
Gain
from Sale of Assets
|
-
|
-
|
-
|
|||||||
Total
operating expenses (income)
|
(96,000
|
)
|
(1,755,000
|
)
|
1,659,000
|
|||||
Income
(Loss) from
Operations
|
(96,000
|
)
|
(1,625,000
|
)
|
(1,529,000
|
)
|
||||
Other
Income
|
4,000
|
-
|
4,000
|
|||||||
Net
Income (Loss)
|
(92,000
|
)
|
(1,625,000
|
)
|
1,533,000
|
2008
|
2007
|
Increase
(Decrease)
|
||||||||
Net
Revenues
|
-
|
592,000
|
(592,000
|
)
|
||||||
Cost
of Revenues
|
-
|
1,028,000
|
(1,028,000
|
)
|
||||||
Selling,General
& Administrative Expense (Income)
|
339,000
|
1,637,000
|
(1,298,000
|
)
|
||||||
Research
& Development
|
-
|
809,000
|
(809,000
|
)
|
||||||
Gain
from Sale of Assets (Income)
|
(629,000
|
)
|
-
|
629,000
|
||||||
Income
(Loss) from
Operations
|
290,000
|
(2,882,000
|
)
|
3,172,000
|
||||||
Other
Income
|
5,000
|
-
|
5,000
|
|||||||
Net
Income (Loss)
|
295,000
|
(2,882,000
|
)
|
3,177,000
|
31.
|
Certification
of Chief Executive Officer and Chief Financial Officer pursuant
to Rule
13a-14 of the Securities Exchange
Act.
|
32.
|
Certification
pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section
906 of
the Sarbanes-Oxley Act of 2002.
|
BBM HOLDINGS, INC. | ||
|
|
|
By: | /s/ Andrew Limpert | |
Andrew
Limpert
President
and Chief Executive Officer
|
||
Dated: May 20, 2008 |