The Board of Directors of Motivideo Systems, Inc. (MOTV) is pleased to
announce that it has approved the consolidated 2013 year-end audited financial
statements prepared by the Company's independent audit firm Cutler & Co.
The audit was conducted in accordance with the standards of the Public Company
Accounting Oversight Board (PCAOB - United States). Those standards require
that the auditor plan and perform the audit to obtain reasonable assurance
about whether the consolidated financial statements are free of material
misstatement. Such an audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the consolidated financial
statements and also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. In the opinion of the company's auditor the
consolidated financial statements (which have been submitted to the GXG
Markets and will be posted the GXG website) present fairly, in all material
respects, the consolidated financial position of Motivideo Systems, Inc. and
Subsidiary as of December 31, 2013 and 2012.
The financial statements have been prepared on a going concern basis which
assumes the Company will be able to realize its assets and discharge its
liabilities in the normal course of business for the foreseeable future. The
ability to continue as a going concern is dependent upon the Company
generating profitable operations in the future and, or, obtaining the
necessary financing to meet its obligations and repay its liabilities arising
from normal business operations when they come due.
The Company did not pay dividends in 2013 and there are no plans to pay
dividends in the near future.
Sincerely,
Robert W. Whitmore
CEO and Director.
The Company's Consolidated Balance Sheet, Statement of Operations and
Consolidated Statement of Comprehensive Income are appended below:
MOTIVIDEO SYSTEMS, INC.
CONSOLIDATED BALANCE SHEETS
ASSETS December 31, 2013 December 31, 2012
(Restated)
Current assets:
Cash $ 20,783 $ 16,053
Related party loan receivable - 54,334
Management advances 277,582 284,500
Total current assets 298,366 354,887
Fixed assets, net of accumulated depreciation 15,945 12,282
Other assets:
Intangible asset license agreement net of amortization 345,940 427,141
Investment in available for sale marketable securities 5,256,543 4,029,693
Investment in non-marketable Securities, related party 595,582 320,000
Investment in joint venture, related party 25,000 25,000
Security deposits 5,000 3,000
Total other assets 6,228,065 5,172,003
Total assets $6,542,376 $5,172,003
LIBILITIES AND SOTCKHOLDERS EQUITY
Current liabilities:
Accounts payable and accrued expenses $ 56,972 $ 20,745
Related party loan payable 60,541 -
Deferred compensation payable - 375,000
Convertible debt - 75,000
Notes Payable 842,000 750,000
Total current liabilities 959,513 1,220,745
Total liabilities 959,513 1,220,745
Stockholder's Equity
Preferred Stock, no par value, 100,000,000
shares authorized; none outstanding
Common Stock, no par value, 100,000,000 shares 3,749,226 2,527,510
authorized; 27,159,932 and 23,645,148 shares
issued and outstanding at December 31, 2013
and 2012 (restated), respectively
Common Stock payable 853,836 711,836
Accumulated other comprehensive income 4,144,043 2,917,193
Accumulated deficit (3,164,242) (2,205,281)
Total stockholder's equity $5,582,863 $3,951,258
Total liabilities and stockholder's equity $6,642,376 $5,172,003
MOTIVIDEO SYSTEMS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
Year Ended Year Ended
December 31, 2013 December 31, 2012
(Restated)
Expenses:
Research and development $ 65,474 $ 39,925
Research and development, related party 39,050 151,308
Professional fees 120,961 304,938
Stock compensation 591,506 86,969
General and administrative 217,222 264,968
Total expenses (1,034,213) (848,108)
Net loss before other expense (1,034,213) (848,108)
Other income (expense)
Gain on extinguishment of debt 287,397 -
Interest expense (212,145) (755,053)
Other income (expense), net 75,252 (755,053)
Net loss $ (958,961) $ (1,603,161)
Weighted average number of common shares
Outstanding: Basic and Diluted 26,015,091 23,525,764
Net loss per common shares - Basic and Diluted $ (0.04) $ (0.07)
MOTIVIDEO SYSTEMS, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Year Ended Year Ended
December 31, 2013 December 31, 2012
(Restated)
Net loss $ (958,961) $ (1,603,161)
Other comprehensive income: 1,226,850 2,917,193
Unrealized gain on available for sale
Marketable securities
Comprehensive income $ 267,889 $ 1,314,032