I need help with the financials. The problem is SO obvious that I must be doing something wrong.
1. Looking at the STATEMENTS OF OPERATIONS for the quarter it shows no revenue (obviously) and $503,029 in total operating expenses.
2. Under OTHER (INCOME) EXPENSES it lists Interest expense of $225,545 and Other income of $779,519 (insurance claim settlement)***.
The income net of the expense is $553,974, is shown correctly as TOTAL OTHER (INCOME) EXPENSES.
3. The problem.
The following line, INCOME (LOSS) BEFORE INCOME TAXES, is supposed to be the result of simple math - the Loss from Operations...$503,029...plus or minus the OTHER (INCOME) EXPENSES...$553,974. Hence I'm pretty sure that that line should have shown Income of $50,945.
Instead it shows Income of $755,667! I have no idea how they got to that number.
HELP!!!
This mistake, if it is a mistake, has been carried forward to the 6 month totals and the Cash Flow Statement. I thought that I knew how to do this stuff, but time may be taking its toll. It's either a HUGE mistake...the kind that no World Class CFO should ever make...or this aging retired bookkeeper is missing something. I expect it is the latter, but I can't figure it out.
***
"The Company filed the lawsuit on May 25, 2012 at the Ontario Superior Court of Justice, seeking damages consisting of the costs of defense and any damages that may be awarded against the Company, our former CEO John Bordynuik, and former CFO Ron Baldwin in the Class Action and in the SEC Action. The Ontario Superior Court of Justice issued the dismissal order dated May 9, 2017. The case was settled in the U.S. with ACE (Insurance carrier) in or about May 2013, pursuant to what is known as a “Mary Carter” (confidential) settlement."
But can it core A apple?
Yes Ralph, of course it can core A apple.
