Protagenic Therapeutics Inc. (PTIX)

[eddy2]

Not every thing is as it appears. Balance sheet assets are revenue producing assets used for collateral purposes leveraging more debt to pay more in wages.


This is done by the using the collateral and leasing it back to the company at a premium. What ever the market can take leaviating the looks of any revenue being produced. You can't releverage assets that are already leaverage but you can leverage on the income they produce.

An example you take a building that is leased. Your already paying a lease to the vender but in fact that lease your paying is for a use of an asset. So let's say your paying 10% a year to lease a million dollar building.


You can claim a million dollars in asset minus your cost that gives you a $900,000.00 property asset with the same as a liability.

Now let's say you pay 20% lease for the property. Ten percent to the owner and the other ten percent paid back the company.

Let's crunch the 10% kick back to the company. The leveraged asset value is $900,000.00 minus the remaining $100,000.00 that is well above the ten percent of what the $900,000.00 would represent so your spread has become much more then the liability associated to the lease cost.

This appreciation can now be used too underwrite the sale of more shares. The spread is due noted by the treasury shares now available yet treasury shares are treated as a liability because of there collateral use.


This false or miss leading use of borrowed capital to leverage the borrowing or underwriting of shares is fraudulant in my view to make earnings larger then they truly are. Now many argue that the information is there cause how can there be a positive depreciated value for depreciation on the outflow of cash.


As you see depreciation should be treated as a negative outflow. This also turns proceeding numbers mentioned in reverse as well on the cash flow statement. Big companies get caught for these actions but smaller companies not having financials certified seem to fly under the radar. I encourage others to bring this forward to the SEC in having this sort of thing stoped.


I'm not an accountant and the previous statements are of my own observation and recommend you to first consult your accountant or companies accountant of your concerns.