MCO Capital Announces 2006 Annual Results

For the year ended October 31, 2006, MCO CAPITAL INC. did not record any revenue, whereas it had recorded interest income of $329 the previous year. The Company incurred expenses of $88,198 in 2006, consisting primarily of professional fees, compared with $86,445 a year earlier.

As no income tax or income tax recovery was recorded, the Company therefore closed fiscal 2006 with a net loss of $88,198 or $0.02 per Class B share, compared with a net loss of $86,116 or $0.02 per share in 2005. The number of outstanding shares remained unchanged, at 4,233,689 Class B shares.

Operating activities for fiscal 2006 used net cash flows of $80,897 while MCO's company under common control injected funds of $78,004 in the form of interest-free advances, $44,178 of which in the fourth quarter. As a result of the various cash flows of the year, the Company's cash amounted to $80,163 on October 31, 2006, compared with $83,056 as at October 31, 2005.

Aside from the company's under common control $78,004 advances, which are recorded as a current liability, few changes occurred in MCO's balance sheet between October 31, 2005 and 2006. As at October 31, 2006, MCO Capital Inc's total assets amounted to $92,774 compared with $90,652 a year earlier, consisting primarily of cash, as well as taxes receivable. As at October 31, 2006 current liabilities totalled $106,764. In addition to the company's under common control advances, they included $28,760 in accounts payable consisting primarily of professional fees payable, and accrued liabilities. In 2005, current liabilities consisted exclusively of accounts payable and accrued liabilities in the amount of $16,444.

The year's net loss reduced shareholders' equity from $74,208 or $0.02 per share as at October 31, 2005, to a deficit of ($13,990) or ($0.003) per share as at October 31, 2006.

Board members and officers are currently considering various alternatives in regards to the Company's future. -- www.cnxmarketlink.com