PLGC Playlogic Entertainment Inc (CE)

PLAYLOGIC ENTERTAINMENT, INC.

 

FORM 10-QSB/A

 

TABLE OF CONTENTS

 

 

PART I -- FINANCIAL INFORMATION			Page No.
	Item 1.	Financial Statements	3
	Item 2.	Management’s Discussion and Analysis	12
	Item 3.	Quantitative and Qualitative Disclosures about Market Risk	17
	Item 4	Controls and Procedures	18
PART II -- OTHER INFORMATION
	Item 1.	Legal Proceedings	18
	Item 1A.	Risk Factors	18
	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	18
	Item 3.	Defaults Upon Senior Securities	18
	Item 4.	Submission of Matters to a Vote of Security Holders	19
	Item 5.	Other Information	19
	Item 6.	Exhibits	19
	Signatures		20
	Exhibit Index		21
	Certifications		Attached

 

NOTE G - SEGMENT INFORMATION AND REVENUE CONCENTRATIONS

The Company sells it’s products to wholesale distributors in various domestic and foreign markets. The following table shows the Company’s gross revenue composition:

 

		For the 3 months ended March 31,
		2008			2007
Europe and United Kingdom
Customer A *		0	0%		2,211,950	64%
Customer B		1,083,710	27%		433,398	12%
Customer C		188,058	5%		525,331	15%
Customer D		1,108,424	27%		0	0%
Customer E		434,609	11%		0	0%
Others		493,614	12%		311,917	9%
		3,308,415	82%		3,482,596	100%
Asia
Others		32,505	1%		0	0%
		32,505	1%		0	0%
United States & Canada
Customer A *		0	0%		0	0%
Customer E		690,760	17%		0	0%
Others		0	0%		0	0%
		690,760	17%		0	0%
Total		4,031,680	100%		3,482,596	100%

* The Company entered into a license contract with Customer A, for global distribution of certain games. As the Company is located in Europe, the revenue has been allocated to Europe and UK. Part of this revenue should however be read as US market revenue.

 

Gain on debt restructuring. Gain on debt restructuring totaled $0 for the three months ended March 31, 2008. For the three months ended March 31, 2007, gain on debt restructuring totaled $387,408. The gains relate to debt extinguishments with various creditors arranged during the first three months of last year. For 2008 we have not restructured any debt.

Interest Expense. Interest expense totaled $57,915 for the three months ended March 31, 2008. For the three months ended March 31, 2007, interest expense totaled $319,446. This represents a decrease of $261,531, or 82%. This decrease in interest expense is primarily due to the decrease of interest bearing short term loans during the year. During the year 2007 most loans were repaid or converted into equity.

Net Result. Our net profit was $696,747 for the three months ended March 31, 2008. For the three months ended March 31, 2007, the net profit totaled $758,944. Although a slight decrease in profit is shown, the quality of the result has improved dramatically. The company was able to restructure the debts, and through continued focus on the operational expenses the expenses are very flat compared to prior quarters. Last year we were able to also restructure debts which led to a one-time gain of $387,408 impacting the result.

 

Other comprehensive income. Other comprehensive income represents the change of the Currency Translation Adjustments balance during the reporting period. The Currency Translation Adjustments balance that appears in the stockholders’ equity section is cumulative in nature and is a consequence from translating all assets and liabilities at current rate whereas the stockholders’ equity accounts are translated at the appropriate historical rate and revenues and expenses being translated at the weighted-average rate for the reporting period. The Change in currency translation adjustments was $94,232 for the three months ended March 31, 2008 and $(104,667) for the three months ended March 31, 2007.

 

Cash flow from operations. We showed a net profit of $696,747 for the 3 months ended March 31, 2008, however the cash flow from operations shows $345,472 negative. This is due to the fact that we released 3 new titles in the first quarter, two of which were in March,  which causes some outstanding receivables in the balance sheet. Sales resulting in revenue, but not yet in cash.

Item 4. Controls and Procedures

 

Evaluation of Disclosure Controls and Procedures

 

Based on an evaluation under the supervision and with the participation of management, our principal executive officer and principal financial officer have concluded that our disclosure controls and procedures as defined in rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (“Exchange Act”) were effective as of March 31, 2008 to ensure that information required to be disclosed by us in reports that we file or submit under the Exchange Act is (i) recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission rules and forms and (ii) accumulated and communicated to our management, including our principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure.

 

Changes in Internal Control over Financial Reporting

 

There were no changes in our internal control over financial reporting during the first quarter of 2008, which were identified in connection with management’s evaluation required by paragraph (d) of rules 13a-15 and 15d-15 under the Exchange Act, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

 

 

PART II — OTHER INFORMATION

 

SIGNATURES

 

     Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

	Playlogic International, Inc.
Date: August 21, 2008	By:	/s/ Willem M. Smit
		Willem M. Smit Chief Executive Officer