CYTTA CORP. - 10-K - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(Edgar Glimpses Via Acquire Media NewsEdge) The following discussion highlights the principal factors that have affected our
financial condition and results of operations as well as our liquidity and
capital resources for the periods described. This discussion contains
forward-looking statements. Please see "Forward-Looking Statements" for a
discussion of the uncertainties, risks and assumptions associated with these
The following discussion and analysis of the Company's financial condition and
results of operations are based on the preparation of our financial statements
in accordance with U.S. generally accepted accounting principles. You should
read the discussion and analysis together with such financial statements and the
related notes thereto.
Results of Operations
We have generated $2,800 in revenues from our business operations for the year
ended September 30, 2013 and have incurred $ 2,267,653 in operating expenses
through the year then ended.
The following table provides selected financial data about our company for the
fiscal year ended September 30, 2013 and 2012, respectively.
Balance Sheet Data September 30, 2013 September 30, 2012
Cash and cash equivalents $ 188,068 $ 36,080
Total assets $ 245,704 $ 96,295
Total liabilities $ 476,837 $ 684,031
Shareholders' equity (deficit) $ (23,133) $
Our cash in the bank at September 30, 2013 was $188,068. Net cash provided by
financing activities during the year through September 30, 2013 was $468,300.
Plan of Operation
Cytta has for several years been designing and building an ecosystem that would
allow any Bluetooth device to automatically send its data to our specially
provisioned Android SmartPhone and then instantly pass that data unto a cloud
based Electronic Medical Record, which is automatically populated with the
client's readings and information. The goal of the Cytta Connect system was to
allow patients, their caregiver or medical providers to review and monitor their
progress remotely on an ongoing basis.
On June 18th, 2009, the Company entered into a Licensing Agreement with
Lifespan, Inc. Through a series of transactions and business developments
commencing in 2002, Lifespan had acquired the expertise and licenses to
manufacture, distribute and market various technology-based internet access and
computing products and services, consisting of internet access devices, related
software and hardware and a series of medical peripherals designed and adapted
to provide remote non-diagnostic monitoring of home based and remote patients.
Under the terms of the Agreement with Cytta, Lifespan granted the Company the
exclusive license to manufacture, sell, distribute, operate, sub-license and
market these internet access devices, products and services in the United
States. The Company plans to utilize the License to develop a model for the
internet access devices which can incorporate the numerous technology advances
which are currently available and is currently pursuing this avenue
On November 10th, 2010, the Company entered into an MVNO Mobile Virtual Network
Operator Agreement (herein "MVNO Agreement") with Vonify Inc. of Toronto, Canada
and Georgetown, Grand Cayman Island, BWI (herein "Vonify") and MVNO Mobile
Virtual Network Operator Corp (herein "MVNO") of New Westminster, Canada for a
license to provide all the "Services" of the Vonify Network to third parties, in
the medical marketplace in the USA. The Vonify Network includes those
integrated mobile switching facilities, servers, cell sites, telecom and
internet connections, billing systems, validation systems, gateways, landline
switches and other related facilities used to provide the Services. The
Services to be marketed by Cytta are defined as wireless telecommunications
services for the Global System for Mobile (GSM) communications.
Since the acquisition of the Lifespan Technology, and the MVNO Agreement, the
Company has a remote medical monitoring model designed to deliver seamless, near
real-time, medical data transmission, through Bluetooth connectivity, utilizing
the Company's wireless telecommunication services, to major medical
payor/providers back end electronic medical monitoring systems (EMR's) with a
pricing structure sufficient to generate a positive return on investment (ROI)
for the clients.
The Company and its licensing partner have now completed the development of the
proprietary Firmware Client and have installed the technology on several Nexus
One, HTC My Touch, HTC Wildfire, HTC Sense, Sony Xperia android smartphones.as
well as with the Samsung and HTC tablets. The testing and integration of the
combination Smartphone/tablets and Firmware Client, which has collectively been
described as the Cytta Medical Smartphone or the Cytta Medical Tablet, with the
blood pressure, weight scale, pulse/oximetry and blood glucose devices has been
completed and are all functioning seamlessly. The Company has completed the
development of the 'Online Data Presentation Screens" Dashboard or 'Instant
EMRTM' to represent the data captured by the system for its clients.
The Company began its first installations of the complete Cytta Ecosystems in
September 2011 in the US, with two Medical Group clients wishing to utilize and
or participate in the Company's "medical monitoring ecosystem'. In March 2012
the Company commenced its first major installation and product evaluation with a
major medical Insurance Co/Payor. The Company also delivered its second round
of orders to its first two medical group clients and has received notice of
upcoming further installations.
Upon conclusion of the Insurance co/Payor Pilot Program evaluation, the Company
will begin full deployment of its systems and commence operations as a Medical
Health Service Provider (MHSP). In November 2012 the Company received the 6
Month Pilot Program Whitepaper dated September 30, 2012 independently prepared
by the major medical Insurance Co/Payor with whom the Pilot program was
conducted. To this end the Company is currently in discussions with potential
partners and/or clients wishing to utilize and or participate in the model or
the 'Company's 'medical monitoring ecosystem'. The Company continues to advance
the technology and its capabilities while discussing implementations in
accordance with the Affordable Care Act.
Cytta currently has minimal operating costs and expenses at the present time due
to our relatively new business activities. However we anticipate significantly
increasing our activities as a result of the first sales of our systems and the
installation thereof. We have entered into certain management and consulting
contracts with our senior Officers and non-affiliated consultants who will be
providing business services to the Company in the health care arena.
Additionally, we will be required to raise significant capital over the next
twelve months, in connection with our operations resulting from our marketing
We have engaged in significant product research and development over the past
years while the technology and system was being developed. The Company's
business may cause us to engage in further research and development in the
foreseeable future. We have no present plans to purchase or sell any plant or
significant equipment although we will have to acquire some equipment related to
the marketing Agreements. We also have immediate plans to add employees and we
will continue to do so in the future as a result of the operations related to
the marketing of our systems.
Liquidity and Capital Resources
Our cash and cash equivalents balance as of September 30, 2013 was $188,068.
We currently have three clients utilizing our systems and are fully operational.
We currently have many potential clients evaluating our technology and systems.
We do not have sufficient funds on hand to pursue our business objectives for
the near future or to commence operations without seeking additional funding. We
currently do not have a specific plan of how we will obtain such funding.
Loans to the Company
We have been receiving loans from related parties of the Company to pay general
operating costs in the form of convertible demand notes payable. The
convertible demand promissory notes do not bear interest. As of September 30,
2013, $476,837 in notes was outstanding.
We have minimal operating costs and expenses at the present time due to our
limited business activities. We will, however, be required to raise additional
capital over the next twelve months to meet our current administrative expenses
and to develop our operations. This financing may take the form of additional
sales of our equity or debt securities to, or loans from, stockholders, or from
our officers and directors. There is no assurance that additional financing
will be available from these or other sources, or, if available, that it will be
on terms favorable to us.
Our auditors have included an explanatory paragraph in their report on our
financial statements relating to the uncertainty of our business as a going
concern, due to our limited operating history, our lack of historical
profitability, and our limited funds. We believe that we will be able to raise
the required funds for operations and to achieve our business plan.
Off-Balance Sheet Arrangements
We have no off-balance sheet arrangements.
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