Mascot Ventures Inc (OTCMKTS:EMON) issued the quarterly report for the three months ending April 30,2015. The company reported that they generated no revenue during this period. In 2Q2015, the general and administrative expenses came at $1.43 million, interest expense stood at $12,115, derivative income came at $14,822 and amortization expense was $1,936.
For the quarter ending April 30, 2014, general and administrative expenses came at $153,266, amortization expense stood at $7,739, derivative income was nearly $9,700 and interest expense came at $5,386. The operating expenses considered just G&A expenses in 2Q2015 and covered stock issuances for services, accounting fees, rent, management fees, filing fees, share transfer fees, consulting fees.
As of April 30, 2015, Mascot Ventures reported cash balance of just $259. The company does not have adequate funds to start building sales staff or to support operational expenses beyond one year. The company will require raising capital to start sales program and support ongoing operational expenses. The additional capital will probably come from sale of some stake in mineral claims or from equity financing by offering common stock.
Mascot Ventures reported that if management succeeds in completing equity financing then shareholders will have face with dilution of their interest in company. The company does not have any funds and cannot give any assurance to investors that they will successfully raise adequate capital from the sale of company’s common stock to support ongoing operating costs and exploration activities.
The future ahead
In the absence of funds, Mascot Ventures Inc (OTCMKTS:EMON) business will probably fail. The company reiterated that there is no surety that it will succeed to record further sales of EMON common stock or other additional financing. In last trading session, the stock price of EMON declined more than to 2% close the trading session at $2.30. The decline came at a share volume of 80,231 compared to average share volume of 68,849.