ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS.
The following selected data of the Company is qualified by reference to and
should be read in conjunction with the consolidated financial statements,
including any notes thereto, and "Management's Discussion and Analysis of
Financial Condition and Results of Operations" included elsewhere in this
report.
Comparison of the nine-month periods ending June 30, 2004 and June 30, 2003 are
contained herein. Fiscal year to date revenues for the nine months ending June
30, 2004 were $1,058,246, as compared to $588,970 for the same period in 2003.
This represents an 80% increase over the previous year, however it is more in
line with revenues generated prior to the start of the war in Iraq. Revenues for
the third quarter of the fiscal year 2004 of $440,324 are higher than the
$99,701 of the prior year. This represents a 341% increase over the same period
of the previous year. The increase was primarily due to the Company having a
return to normal sales. Sales had dropped following the start of the Iraq war in
the previous years quarter. Gross profit percentage was 63% for quarter ended
6/30/04 and 65% for the quarter ended 6/30/03. The operating expenses were
normal business expenses for this period. Expenses for the quarter were 44% of
sales for 6/30/04 and 101% for 6/30/03. The operating expenses increased
slightly due to payroll increases and freight costs.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF CONTINUING AND FUTURE PLAN OF
OPERATIONS.
This analysis should be read in conjunction with the condensed consolidated
financial statements, the notes thereto, and the financial statements and notes
thereto included in the Company's September 30, 2003, Annual Report on Form
10-KSB. All non-historical information contained in this quarterly report is a
forward-looking statement. The forward-looking statements contained herein are
subject to certain risks and uncertainties that could cause the actual results
to differ materially from those reflected in the forward-looking statements.
As of April 15, 2002, the Company has reorganized to eliminate all stockbroker
operations from its business and has focused primarily in the areas of
biotechnology, medical equipment sales and service, and hospital design
consultation. The new Board of Directors has plans for aggressively acquiring
more medically related businesses and investing heavily in the area of
biotechnology. A private placement raised an additional $181,000 of working
capital in May of 2004, and more is anticipated during the final quarter of this
fiscal year.
Management entered into a strategic alliance agreement with Cryptic Afflictions,
LLC. Through this new agreement Century has purchased a percentage of the patent
rights for a new virus that has been discovered by Dr. Steven Robbins of Cryptic
Afflictions, LLC., the company is also providing business development for the
new virus technology company, which has been renamed Limina Biotechnologies,
Inc.
This previously undetected virus appears to be of significant importance to
researchers looking for a cure to Multiple Sclerosis and many other neurological
illnesses. Antibodies to the newly discovered virus were found in the cerebral
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spinal fluid and blood of over 90% of the patients tested with Multiple
Sclerosis. It is believed that this newly discovered virus may prove to be
responsible for a host of neurological disorders. Tests are currently being
prepared for tissue samples of lesions within the brains of patients with
Multiple Sclerosis. This will be the final round of tests before approaching the
FDA for approval of the diagnostic tests, and hopefully an eventual vaccine. Now
that patents are pending in many countries, negotiations for licensing
agreements will follow. Century's management intends to focus more on
biotechnology in the coming years.
LIQUIDITY AND CAPITAL RESOURCES
The Company's operations are conducted through its wholly owned subsidiary,
Global Medical Technologies, Inc. The liquidity requirements of the Company
consist primarily of the operating cash requirements, or working capital needed,
for Global Medical. The Company believes that cash flow from operating
activities will be adequate to meet its liquidity requirements if no growth were
contemplated. However, with the planned growth as described in the preceding
paragraphs, cash flow generated from operations will not be enough. Management
is planning a private placement to raise additional funds during the next two
quarters. These additional funds will be used to finance the growth, and invest
in the new virus research.
FORWARD LOOKING STATEMENTS
This Form 10-QSB includes "forward looking statements" concerning the future
operations of the Company. It is management's intent to take advantage of the
"safe harbor" provision of the Private Securities Litigation Reform Act of 1995.
This statement is for the express purpose of availing the Company of the
protections of such safe harbor with respect to all "forward looking statements"
contained in this Form 10-QSB. We have used "forward looking statements" to
discuss future plans and strategies of the Company. Management's ability to
predict results or the effect of future plans is inherently uncertain. Factors
that could affect results include, without limitation, competitive factors,
general economic conditions, customer relations, relationships with vendors, the
interest rate environment, governmental regulation and supervision, seasonality,
distribution networks, product introductions, acceptance, technological change,
changes in industry practices and one-time events. These factors should be
considered when evaluating the "forward looking statements" and undue reliance
should not be placed on such statements. Should any one or more of these risks
or uncertainties materialize, or should any underlying assumptions prove
incorrect, actual results may vary materially from those described herein.
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