Wednesday, November 29, 2006 7:05:26 PM
So what does a one-time non-cash expense look like?
The chart below assumes that the growth in revenue, gross profit, and income seen recently will continue at the same rate into Q4. If you don’t like that assumption, feel free to use your own, as that’s not really what I’m dealing with here. This chart is meant to show the real role of the one-time non-cash transaction which was charged against the Q3 2006 Administrative Expenses.
As we learned from the Q3 10-Q, there was an assignment of shares, or share options, to cover both past and future obligations for management services, business advisory, and legal and professional services rendered. This share allocation was valued at $1,819,250 in accordance with the required calculation as detailed in the Sarbanes-Oxley Act of 2002, and was assigned in its entirety to Q3 because that is when the commitment was made.
For more detail on Revenue, Gross Profit, and Net Income: see my earlier post 6033 at http://www.investorshub.com/boards/read_msg.asp?message_id=14968621
rjc
The chart below assumes that the growth in revenue, gross profit, and income seen recently will continue at the same rate into Q4. If you don’t like that assumption, feel free to use your own, as that’s not really what I’m dealing with here. This chart is meant to show the real role of the one-time non-cash transaction which was charged against the Q3 2006 Administrative Expenses.
As we learned from the Q3 10-Q, there was an assignment of shares, or share options, to cover both past and future obligations for management services, business advisory, and legal and professional services rendered. This share allocation was valued at $1,819,250 in accordance with the required calculation as detailed in the Sarbanes-Oxley Act of 2002, and was assigned in its entirety to Q3 because that is when the commitment was made.
For more detail on Revenue, Gross Profit, and Net Income: see my earlier post 6033 at http://www.investorshub.com/boards/read_msg.asp?message_id=14968621
rjc
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