Risks Related to Our Business and Industry
We have a limited operating history. While we have not been profitable for our three fiscal quarters ended September 30, 2017, we have been profitable in the past. However, if we never achieve sustained profitability, we could go out of business.
We were formed as a Colorado business entity in October, 2007. In the past, we have been profitable. While we have not been profitable for our three fiscal quarters ended September 30, 2017, we were profitable for the fiscal year ended December 31, 2014 and prior to 2013. We recognize that we must achieve ongoing profitability to be viable over the long term. If we never achieve sustained profitability, we could go out of business.
We currently rely upon clients under common principal control of our majority shareholder for approximately 100% of our revenues, which means that we could be severely impacted if the current arrangement does not continue and we cannot replace our current clients with other clients.
Approximately 100% of the total revenues of our clients, during the quarter ended September 30, 2017, came from entities which were under common principal ownership with our majority shareholder. During the nine months ended September 30, 2017, two related party customers, Bohemian Asset Management, Inc. and Nexcore Healthcare Capital Corp., accounted for 95% of total revenue (50% and 45%, respectively). During the nine months ended September 30, 2016, two related party customers, Bohemian Asset Management, Inc. and Nexcore Healthcare Capital Corp., accounted for 84% of total revenue (44% and 40%, respectively). Our revenue projections are subject to greater uncertainty than if we had revenue commitments from a number of clients. We could be materially impacted if our current arrangement does not continue, we cannot grow or diversify our current arrangement, and we cannot replace our current clients with other clients. While we have no basis to believe that we will not continue to generate revenue from these arrangements, we cannot assure you that these clients, or any of our clients, will continue to purchase our products or services in significant volume, or at all.
Our lack of operating history makes it difficult for us to evaluate our future business prospects and make decisions based on those estimates of our future performance. An investor could lose his entire investment.
We have a limited operating history. An investor has no frame of reference to evaluate our future business prospects. This makes it difficult, if not impossible, to evaluate us as an investment. An investor could lose his entire investment if our future business prospects do not result in our ever sustaining profitability.
If we do not continue to generate adequate revenues to finance our operations, our business may fail.
As of September 30, 2017, we had a cash position of $529,592. We anticipate that operating costs will range between $300,000 and $400,000, for the fiscal year ending December 31, 2017. These operating costs include payroll, contract services, marketing costs, and all other costs of operations. We will use contract employees, who will be paid on an hourly or monthly fee basis. However, the operating costs and expected revenue generation are difficult to predict. We expect to continue to generate revenues in the next twelve months from our fee-based marketing, media and investor relations consulting services. Since there can be no assurances that revenues will be sufficient to cover operating costs for the foreseeable future, it may be necessary to raise additional funds. Due to our lack of operating history, raising additional funds may be difficult.
Competition in our industry is intense.
Our business plan involves acting as a fee-based marketing and media consultant to public and private companies. This business is highly competitive. There are numerous similar companies providing such services in the United States of America. Our competitors will have greater financial resources and more expertise in this business. Our ability to develop our business will depend on our ability to successfully market our services in this highly competitive environment. We cannot guarantee that we will be able to do so successfully.
The share control position of WestMountain Blue, LLC will limit the ability of other shareholders to influence corporate actions.
Our largest shareholder, WestMountain Blue, LLC, of which Mr. Klemsz is a 16.8% member, owns 8,505,652 shares and thereby controls approximately 90% of our outstanding shares. Because WestMountain Blue, LLC individually beneficially controls more than a majority of the outstanding shares, other shareholders, individually or as a group, will be limited in their ability to effectively influence the election or removal of our directors, the supervision and management of our business or a change in control of or sale of our company, even if they believed such changes were in the best interest of our shareholders.