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TRIMOL GROUP INC - 10-Q - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

August 19, 2014



The following Management's Discussion and Analysis of Financial Condition and Results of Operations, and other sections in this Quarterly Report, should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2013, as well as our unaudited consolidated financial statements and notes thereto contained elsewhere in this Quarterly Report on Form 10-Q. Such financial statements are subject to risks and uncertainties that could cause actual results to differ materially from those described. We expressly disclaim any obligation or undertaking to update these financial statements in the future.

Description of the Company



Although the Company is seeking business opportunities, as of June 30, 2014, and since April 2006, we did not have any business operations that generated revenue.

Intercomsoft Limited ("Intercomsoft") is our wholly owned subsidiary. Although its does not currently have any operations, through April 2006, pursuant to a Contract on Leasing Equipment and Licensing Technology (the "Supply Agreement") awarded to Intercomsoft in April 1996 by the Ministry of Economics, Republic of Moldova, Intercomsoft provided Moldova with a National Register of Population and a National Passport System. Under the terms of the Supply Agreement, Intercomsoft supplied all of the equipment, technology, software, materials and consumables utilized by the Government of Moldova for the production of all national passports, drivers' licenses, vehicle permits, identification cards and other government authorized identification documents used in the Republic of Moldova. Moldova asserted that the Supply Agreement expired by its terms on April 29, 2006 and was not renewed. The non-renewal of the Supply Agreement has been disputed by Intercomsoft and is the subject of two pending legal actions. (See Part II Item 1 - Legal Proceedings).

As used in this report, unless otherwise required by the context, Trimol Group, Inc. and its subsidiary are sometimes collectively referred to as the "Company" or are implicit in the terms "we", "us" and "our".

RESULTS OF OPERATIONS



During the three and six month periods ended June 30, 2014, our operations consisted solely of administrative activities, activities concerning exploration of potential business opportunities and those activities related to pursuing breach of contract claims against the Republic of Moldova as more fully described herein in Part II Item 1 - Legal Proceedings.

Comparison of Three and Six Month Periods Ended June 30, 2014 to June 30, 2013

During the three and six months ended June 30, 2014, we did not generate any revenues from operations and similarly generated no revenues in the comparable periods in 2013.

Total operating expenses for the three months ended June 30, 2014 were approximately $44,000, and were $55,000 in the comparable three month period in 2013. Total operating expenses for the six months ended June 30, 2014 were approximately $83,000 and were $102,000 in the comparable period in 2013.

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Such operating expenses resulted in a net loss from operations of approximately $44,000 and $55,000 for the three month periods ended June 30, 2014 and 2013, respectively and $83,000 and $102,000 for the six month periods ended June 30, 2014 and 2013.

Liquidity & Capital Resources



We have not generated any revenue since the first quarter of 2006. At June 30, 2014 our cash balance was approximately $8,000 which is not sufficient to fund our operating expenses for the foreseeable future.

Since approximately April 2006, we have funded our operating expenses from loans and advances provided by our Chairman of the Board and Royal HTM Group, Inc., our majority shareholder, a company owned and controlled by our Chief Executive Officer and Chief Financial Officer, who also serve as the two members of our Board of Directors. We are dependent upon these loans and advances to fund our future operating expenses.

None of our officers, directors or shareholders are under any obligation to provide us with any future loans or advances. However, if they do not loan or advance us funds at a time when funds are necessary, we may be forced to suspend our limited operations.

Our assets are nominal and our liabilities currently exceed our assets by approximately $7,312,000. These circumstances, among others, raise substantial doubt about our ability to continue operations.

Off-Balance Sheet Arrangements

We have no off-balance sheet arrangements.

Stock Compensation Plans



There were no options to purchase shares of our common stock issued or exercised during the three or six month periods ended June 30, 2014, and as of such date we have no options to purchase shares of our common stock issued or outstanding.

Available information



We are subject to the informational requirements of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and, in accordance therewith, file reports, proxy and information statements and other information with the SEC.

All reports filed by us with the SEC are available free of charge via EDGAR through the SEC web site at www.sec.gov. In addition, the public may read and copy materials we file with the SEC at the public reference facilities maintained by the SEC at its public reference room located at 100 F Street, N.E.Washington, D.C. 20549. We will also provide copies of such material to shareholders upon written request.

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No person has been authorized to give any information or to make any representation other than as contained or incorporated by reference in this Quarterly Report and, if given or made, such information or representation must not be relied upon as having been authorized by us.


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Source: Edgar Glimpses


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