MK Automotive, Inc. (Commission File No. 000-53911) is an automotive repair company that operates owned retail locations and a franchising program for automotive repair services. Revenue comes from direct retail sales of automotive repair services at company-owned stores and from fees collected from franchisees. The company is headquartered at 5833 West Tropicana Avenue, Las Vegas, Nevada, and its primary market is Nevada. As of the six months ended September 30, 2011, cost of goods sold represented 89.1% of sales for the three months ended September 30, 2011, reflecting thin gross margins. Gross profit for the three months ended September 30, 2011 was $103,190, down 42.9% from $180,848 in the three months ended September 30, 2010. The company carries a stockholders' deficit, with total liabilities of $2,635,942 against total assets of $2,671,693 as of September 30, 2011. Short-term factoring of future credit card receivables has been used to bridge operating cash shortfalls. Michael R. Murphy serves as President and Chief Executive Officer.

Revenue model

Transactional revenue from automotive repair services sold at company-owned stores, supplemented by franchise fees and ongoing fees from franchisees. The company has used short-term factoring of future credit card receivables as a financing mechanism.

Products and services

Automotive repair services sold at company-owned retail locations; franchised automotive repair operations with franchise sales and fee arrangements.

Customers and end markets

Retail consumers seeking automotive repair services, primarily in the Las Vegas, Nevada market. Franchisees are also a customer type for the company's franchise program.

Value-chain role

Direct operator of automotive repair retail locations and franchisor of automotive repair outlets.

Geographic exposure

Primary market is Las Vegas, Nevada, as disclosed in the 10-Q filed November 21, 2011.

Source: SEC 10-Q, filed 2011-11-21

Industry: Services-Automotive Repair, Services & Parking