I found a couple of bothersome notes in the 10Q. Comments from the enlightend are welcome:
From and after the Spin-Off, Libsyn will be responsible for the debts, liabilities and other obligations related to the business or
businesses which Libsyn own and operate following the consummation of the Spin-Off. Although Libsyn does not expect to be
liable for any obligations not expressly assumed by Libsyn, it is possible that Libsyn could be required to assume responsibility
for certain obligations retained by FAB should FAB fail to pay or perform its retained obligations. After the Spin-Off, FAB may
have obligations that at the present time are unknown or unforeseen. As the nature of such obligations are unknown, we are
unable to provide an estimate of the potential obligation. However, should FAB incur such obligations, Libsyn may be
financially obligated to pay any losses incurred.
Even more troubling - this sounds like FABU will be sucking all the cash out of LBBS at will:
Cash used in financing activities was $136,804 for distributions to FAB Universal Corp. during the six months ended June 30,
2016 and $1,245,832 in 2015. This is a standard practice between FAB Universal Corp. and Libsyn to transfer cash from the
subsidiary to the Parent. Each month, the cash balance of each subsidiary is reviewed and the cash used for maintaining normal
operations is transferred to the Parent. A review of upcoming expenditures and the accounts receivable and accounts payable
balances is also considered in determining the amount to transfer
