Are you for real Ron?
The $5,000,000 is clearly shown in the LIABILITY section and includes "long-term loans" for $610,000.
The shareholder deficit is shown as "Prior year retained earnings" and "Retained earnings". A shareholder deficit is shown as a negative amount (in brackets). Refer to MYEC's financials and you will see the same thing. Seergate's shareholder deficit is about $5,700,000 which is in line with the "Accumulated Deficit" shown in their Audited financials (Exhibit 10.24)
Ask an accountant or let me know if you have any questions.
To summarize, it is not false info.... It is relevant/significant... It is not shareholder deficit.... It is debt, a liability, an obligation to pay, a future outflow of resources...
Any other accountants on this board?
