PGI INCORPORATED LIQUIDITY AND CAPITAL RESOURCES
The liabilities of the Company exceed the reported value of its assets.
Management's efforts and activities have been, and continue to be, to sell
assets of the Company to repay its indebtedness and to pay administrative
expenditures in keeping an inactive company in existence. The aggregate
remaining land inventory is less than 68 acres, consisting of multiple parcels
located in two
In management's judgment, the assets will be insufficient to satisfy much, if any, of the outstanding indebtedness of the Company. Consequently, there is substantial doubt about the Company's ability to continue as a "going concern," as that term is used for generally accepted accounting purposes. The asset carrying values shown in the financial statements, are judged to be reasonable estimates of the value, when viewed in the context of the entirety of the financial statements.
In early 2019, the Board of Directors of PGI concluded that PGI met and
continues to meet all conditions under which a registrant may be deemed an
"Inactive Entity" as that term is defined or contemplated in Rule 3-11 of
Regulation S-X and as the term "Inactive Registrant" is further contemplated in
the
As an Inactive Registrant, PGI currently intends to continue to timely file
Annual Reports on Forms 10-K with the
7
Table of Contents
Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations (continued)
PGI meets all of the conditions in Rule 3-11 of Regulation S-X for an "Inactive Registrant" which are:
(a) Gross receipts not in excess of $100,000 ;
(b) Not purchasing or selling any of its own stock or granted options
therefor;
(c) Expenditures for all purposes not in excess of $100,000 ;
(d) No material change in the business has occurred during the fiscal year;
(e) No securities exchange or governmental authority having jurisdiction over
the entity requires the entity to furnish audited financial statements.
PGI Has been a
The Company, formerly a
The Company's financial statement indebtedness includes its 6.0% subordinated
convertible debentures which matured in May, 1992, with a remaining face amount
of
The cumulative amount due for the 6% subordinated convertible debentures which
matured in
8
Table of Contents
Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations (continued)
RESULTS OF OPERATIONS Revenues
Revenues for the year ended
Costs and Expenses
Costs and expenses for the year ended
Increase
2021 2020 (Decrease)
($ in thousands)
COSTS, EXPENSES AND OTHER
Cost of real estate sales $ 15 $ - $ 15
Interest expense 1,437 1,417 20
Forgiveness of debt and interest - (410 ) 410
Taxes and assessments 5 5 -
Consulting and accounting-
related party 24 34 (10 )
Legal and professional 1 36 (35 )
General and administrative 24 25 (1 )
$ 1,506 $ 1,107 $ 399 The cost of real estate sales for the year ended
Interest expense relating to the Company's current outstanding debt held by
non-related parties, increased by
9
Table of Contents
Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations (continued)
The Company recognized
During the year ended
Taxes and assessments were
Consulting and accounting expense was
Legal and professional expenses decreased by
Increase
(Decrease)
($ in thousands)
Legal common title matters $ (6 )
Legal going concern alternatives (9 )
Legal and professional fees environmental remediation (8 )
Legal review filing of periodic reports (12 )
$ (35 )
10
Table of Contents
Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations (continued)
General and administrative expenses decreased by
The net loss was
FINANCIAL CONDITION
Total assets decreased by
Increase
2021 2020 (Decrease)
($ in thousands)
Cash $ 58 $ 81 $ (23 )
Land Inventory 10 14 (4 )
$ 68 $ 95 $ (27 ) Net cash used in operating activities was
Cash received from operations during the year ended
11
Table of Contents
Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations (continued)
Cash expended for operations during the year ended
Increase
(Decrease)
($ in thousands)
Cost of real estate sales paid $ 10
Interest - related party paid (75 )
Taxes and assessments paid 5
Consulting and accounting-related party paid (11 )
Legal and professional paid (37 )
General and administrative paid (5 )
$ (113 )
The decrease of
Liabilities were
Increase
2021 2020 (Decrease)
($ in thousands)
Accounts payable and accrued expenses
5 4 1
Accrued interest 33,024 31,587 1,437
Accrued interest-related party 52,740 52,790 (50 )
Notes payable 1,198 1,198 -
Convertible subordianted debentures payable 8,025 8,025 -
$ 95,149 $ 93,764 $ 1,385 Accounts payable and accrued expenses decreased by
Accrued real estate taxes increased by
12
Table of Contents
Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations (continued)
Accrued interest increased by$1,387,000 atDecember 31, 2021 compared toDecember 31, 2020 reflecting changes in the following accrued interest categories: Increase 2021 2020 (Decrease) ($ in thousands)
Convertible subordinated debentures
(50 )
Notes Payable 3,512 3,450 62
$ 85,764 $ 84,377 $ 1,387 The increase in accrued interest of
The decrease in accrued interest of
The increase of
The Company's stockholders' deficiency increased to
Off-Balance Sheet Arrangements
The Company has no Off-Balance Sheet Arrangements.
Recent Accounting Standards
Accounting Standards Update (ASU) No. 2014-15, "Presentation of Financial
Statements - Going Concern (Subtopic 205-40): Disclosure of Uncertainties about
an Entity's Ability to Continue as a Going Concern", is effective for interim
and annual periods ending after
ASU No. 2014-09, "Revenue from Contracts with Customers (Topic 606)", is
effective for fiscal years beginning after
13
Table of Contents
Forward Looking Statements
The discussion set forth in this Item 7, as well as other portions of this Form
10-K, may contain forward-looking statements. Such statements are based upon the
information currently available to management of the Company and management's
perception thereof as of the date of the Form 10-K. When used in this Form 10-K,
words such as "anticipates," "estimates," "believes," "appears", "expects," and
similar expressions are intended to identify forward-looking statements but are
not the exclusive means of identifying such statements. Such state-ments are
subject to risks and uncertainties. Actual results of the Company's operations
could materially differ from those forward-looking statements. The differences
could be caused by a number of factors or combination of factors including, but
not limited to: changes in the real estate market in
© Edgar Online, source
