Our principal executive offices are located at 161 Alpine Drive, Shelbyville, KY 40065. Our telephone number is 502-410-4500. The facility consists of approximately 1,200 square feet of office space, leased for $750 per month. Our original lease expired on September 15, 2007 and, due to high vacancies in the area, we have elected to maintain a verbal month-to-month agreement.
Interest expense for the twelve months ending December 31, 2011 was $312,904 resulting in a net loss from continuing operations of $570,302. By comparison, interest expense for the twelve months ended December 31, 2010 was $24,243 resulting in a net loss from continuing operations of $298,438.
In the September quarter 2008, the company began depreciating our database on a 15-year amortization plan of expensing $6,146 per quarter. In the September quarter 2009, the company revised our database amortization schedule from 15 years to 5 years. The expense with this amortization schedule is now $21,510 per quarter.
On December 31, 2011, the Company had $5,355,495 in total liabilities. Current liabilities included $98,490 in accounts payable, $32,924 in accrued interest, $1,656 in accrued expenses, $62,893 property tax accrual, $9,043 preferred dividends payable, current note payable of $40,000, $172,626 notes payable - related party, current mortgage payable of $128,186 and long term mortgage payable of $4,809,677.
By comparison on December 31, 2010, the Company had $5,200,016 in total liabilities. On December 31, 2010 current liabilities included $61,881 in accounts payable, $20,286 in accrued interest, $2,002 in accrued expenses, $3,006 preferred dividends payable, $65,000 in current notes payable, $113,430 current mortgage payable and long term mortgage payable of $4,934,411.
Net cash used by operating activities for the twelve-month period ending December 31, 2011 was $162,007 compared to $160,353 used in the twelve-month period ending December 31, 2010. During the twelve-month periods ending December 31, 2011 and 2010, $175,000 was provided by financing activities.
During the twelve month period ended December 31, 2011, in an effort to secure additional operating capital and to pay down accounts payable and notes payable, the Company received $213,754 represented by stock purchase agreements from stockholders of the Company. An offering of 3,750,000 shares was issued in December 2010 by the board of directors at a price of $.04 per share. The board of directors authorized an additional offering of 2,500,000 shares on August 18, 2011 at a price of $.04 per share for working capital. In addition, in an effort to secure additional capital to cover operations at our Georgetown 14 Theater, we borrowed $172,626, represented by promissory note agreements from some of our major stockholders. In November 2011 we discharged a $25,000 note by issuance of 833,334 restricted shares at $.03 per share. The Notes were issued pursuant to an exemption from registration under Regulation S of the Securities Act of 1933, as amended.
During the twelve month period ended December 31, 2010 in an effort to secure additional operating capital and to pay down accounts payable and notes payable, the Company sold 4,375,000 restricted shares for $175,000 at $.04 per share.
On December 31, 2010 we purchased property containing the Georgetown 14 theater complex, for a note in the amount of $5,047,841. Except as otherwise disclosed herein as of December 31, 2011, the Company had no other capital commitments. We are currently focused on developing revenues from our entertainment division, our future insurance agency operations and our future prescription services operations, and reducing debt through converting notes payable to common stock when our common stock price provides a reasonable conversion ratio. At this time, we have no contracts, agreements, or understandings for additional funding, nor can any assurance be given that we will be able to obtain this capital on acceptable terms, if at all. In such an event, this may have a materially adverse effect on our business, operating results and financial condition. If the need arises, we may offer a private placement or attempt to obtain funding through the use of various types of short term funding, loans or working capital financing arrangements from financial institutions and or shareholders. No assurance can be given that we will be able to obtain the total capital necessary to fund our new business plans. In such an event, this may have a materially adverse effect on our business, operating results and financial condition.
Our Form S-1 registration statement for the registration of 1,000,000 preferred shares was approved by the Securities and Exchange Commission in June 2010. Upon making application to the state of Kentucky to register these preferred shares our application was rejected. However, since that time the FullCircle balance sheet has significantly improved, it is our intention that we will re-file with the Commonwealth of Kentucky once our financial statements improve. Our ability to raise capital was severely impacted by the Kentucky decision delay.
At the time of this filing, we had insufficient cash reserves and receivables necessary to meet forecast operating requirements. In the event we are unsuccessful in our efforts to raise additional funds, we will be required to significantly reduce cash outflows and, possibly, discontinue our operations. However, after the road construction was completed at our Georgetown property we have attained sufficient revenues to operate with a positive cash flow in February 2012. We need to raise immediate capital to expand our operations and implement our plans. Our failure to obtain immediate financing or inability to obtain financing on acceptable terms could require us to limit our plans, incur indebtedness that has high rates of interest or substantial restrictive covenants, issue equity securities that will dilute our stockholders holdings or discontinue all or a portion of our remaining operations.
The Company’s discussion and analysis of its financial condition and results of operations are based upon its financial statements which have been prepared in accordance with accounting principles generally accepted in the United States. The preparation of these financial statements may have required the Company to make estimates and judgments that affect the reported amounts of assets and liabilities, revenues and expenses and related disclosures. On an ongoing basis the Company evaluates estimates, including those related to bad debts, inventories, fixed assets, contingencies and litigation. Provided the company is profitable in 2012 our loss carry forward would eliminate cash needs for income taxes. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis of the Company’s judgments on the carrying value of assets and liabilities. Actual results may differ from these estimates under different assumptions or conditions.
Obtaining and expanding market acceptance of the products we offer; and