American Green Inc (ERBB)

[IBurnPurpleKush]

A look at their financials reveals the TRUTH.

Stockholder's deficit represents a negative book value of a publicly traded company, i.e. the company has greater liabilities than assets (It owes more than it owns).

accumulated deficit: a term used to describe the amount of net loss that is incurred in a given year when a business shows a negative balance in its retained earnings.

Paid In Capital: The amount of capital "paid in" by investors during common or preferred stock issuances, including the par value of the shares themselves. Paid in capital represents the funds raised by the business from equity, and not from ongoing operations.


http://www.otcmarkets.com/financialReportViewer?symbol=ERBB&id=120695

LIABILITIES
CURRENT
Accounts payable and accrued expenses $ 490,414
Loans from shareholders 2,063,036
Debentures payable and accrued interest 1,285,646
Total current liabilities 3,839,096

LONG TERM
Acquisition Debt 2,226,146
Total Liabilities 6,065,242

STOCKHOLDERS' DEFICIT
Preferred stock Series B 65,000
Preferred stock Series C 1
Common stock 3,851,573
Additional paid-in capital 12,631,711
Accumulated (deficit) (18,679,067)
Total stockholders' deficit (2,130,782)
Total liabilities and stockholders' deficit $ 3,934,460

Current Assets/Liabilities

These statistics are always worth a look to take a company's short-term temperature. Current assets are things like cash and cash equivalents, accounts receivable (money owed the company by customers) and inventories. They are defined as anything that could be sold quickly to raise money. Current liabilities are what the company owes in short order -- mostly accounts payable and short-term debt.

The thing to look for here is a big change from period to period. If the current assets number grows quickly, it could mean the company is accumulating cash -- a good thing. Or it is having trouble collecting accounts receivable from customers -- a bad thing. Precipitous growth in current liabilities is rarely a good thing, but it might be explainable due to some short-term corporate goal.

If you see a spike in either category, it's worth further explanation. Check the analyst research, news reports or get the financial statements and read the notes. Management is required to explain changes in the company's financial condition.

Negative shareholder equity could show up on a company's balance sheet for a number of reasons, all of which should serve as red flags to look much closer before investing.