MANILA, Philippines – Island Information and Technology, Inc. (PSE:IS) released its annual financial report for the fiscal year ending October 31, 2016. The disclosure shows the company had a net loss of P833,782. This amount is equal to a P526,517 decrease in net loss of IS or equivalent to 38.71 percent as compared to its previous year’s financial performance.
The balance sheet of the company showed a relatively little movement where assets of the company totaled P21.24 million which almost remained unchanged compared to P21.25 million as of the previous year. Liabilities totaled P126.2 million, up by P821 thousand or 0.65 percent versus previous year’s liabilities of P125.4 million. Shareholders’ equity of the company totaled negative P105 million which is down by P833,782 or 0.80 percent versus previous year’s shareholders’ equity of P104.2 million. The change in shareholders’ equity is only because of the incurrence of a net loss of P833,782 which is further added to an already negative retained earnings.
Island Information and Technology has not declared any dividend for the last two years or even in any prior period to date. There is no restriction imposed that limits the ability to pay dividends on common equity or that are likely to so in the future depending upon the financial capability of the corporation. On the other hand, the company may not give out dividends as long as it has no sufficient retained earnings to cover dividend payments.
The company has not sold any unregistered securities nor issued, securities issued in exchange for any property, services, or other securities and new securities resulting to a modification of outstanding securities.
It is also noted that all of the company’s liabilities are due and demandable within one year as of October 31. 2016. The disclosures noted that the company plans to settle the advances from officers amounting to P110 million. The payment will be made through the excess of the proceeds from the stock rights offering.
Island Information & Technology, Inc. (IS) was registered with the Securities and Exchange Commission on December 10, 1959 with a corporate name of Island Oil Company which mainly engages in mineral development projects and oil exploration. Losses that were incurred pushed the company to decided in shifting from oil exploration to metal mining. Operations are done in Isabela Province. This changed the name of the company to Island Mining & Industrial Corporation during the beginning part of 1965. The rising operation costs, increasing price of metals, and unsettlement in the area because of problems in peace and order have affected its operations. On the latter part of 1981, the management of Island Information and Technology decided to halt operations.
IS shares closed at P0.194 on Monday, February 13, 2017, 5.83 percent drop in price year-to-date.