Entertainment Arts Research Inc (EARI)

[JustMyOpinion]

Read in Detail:

Hi folks:

I will preface this the views and opinions are just 'just my opinion'.

HOWEVER, the facts and data below that are quoted come directly from published reports from the company (EARI, it is in black and white for all to read - so I do not know how much really is my 'views or opinions'.

I am just publishing what is already out there for ALL to see and have access too. Considering the company says as of 2/24/14 "Transparency, Honesty a commitment to steady growth built on one of a kind intellectual properties..." (at the bottom of this page which it says investors info:

http://www.earigames.com/Contact.aspx


So here we go:

1. EARI puts out a press press release on Sept 6 2013.

http://www.businesswire.com/news/home/20130906005804/en/Daily-App-Dream-Donation-American-Cancer-Society#.UwvT6YVTDow



The press says " EARI, along with its recent acquisition of Imagination Branding, reported revenue of $8.8 million in 2012 and projects increasing growth in 2013.".

Ummm we are now in 2014 yet I do not see that revenue in their filings.

HOWEVER, according to the company financials published on Dec 2, 2013 (for the period ending Sept 30, 2013) they still did not complete the deal that they have mentioning. Once again they do they show those revenues as they report on EARI financials.

Click here to see the filing and scroll to page 16.

http://www.otcmarkets.com/financialReportViewer?symbol=EARI&id=114202

A quote from page 16:
"From July 1, 2013 to September 21, 2013 the Company issued 13,200,000 shares of common stock.

for the acquisition of Imagination Specialties, Inc.plus cash of $1,500,000 in exchange for all the outstanding shares of Imagination.

In September $230,000 was paid into escrow with the balance of $1,270,000 payable no later than November 8, 2013.
The value of the transaction at market is $2,772,000 in shares plus cash of $1,500,000 resulting in a total price before any impairment of $4,272,000.

The Companys assets are estimated to be $1,092,000 with its liabilities at $1,185,000.

The Company is evaluating the level of impairment necessary
The Company anticipates closing this transaction in November of 2013"

The press is published on Sept 6, 2013 and its for the period ending Sept 30, 2013.

How do they say they anticipate closing in November yet they already said its been completed?

ALSO, here is a supplement filing for the same period and it states on page 2 "Entertainment Arts has had one event in the last two years that represented a recordable stock change.
On August 1, 2013 EARI issued a total of 13,200,000 shares of two year restricted Common A stock to the four principals of Imagination Branding. The stock was sold at July 29th 2013 pricing and represented the stock portion of the purchase of Imagination Branding.

EARI deposited the 13,200,000 and $230,000.00 dollars to the Escrow Agent Charles Fridell, Attorney 4535 Harding Rd, Suite
208, Nashville, TN 37205. Imagination Branding close will be completed upon the escrow agent receiving $1,270,000.00
cash and the completion of Imagination’s audit."

http://www.otcmarkets.com/financialReportViewer?symbol=EARI&id=114199

That is a HUGE problem (in my opinion). EARI said they closed on a deal that did not close. The stock traded $118k shares on Sept 6 according to the charts on Pinksheets.com

http://www.otcmarkets.com/stock/EARI/chart

Then the stock goes to over $.50 on Nov 19 and now it trades between $.12 - $.19

I think it is worth noting that the press release did say they raised $500 for American Cancer which is a great charity.

Now moving along:

Page 15 of that same filing BY THE COMPANY (EARI) says:

As reflected in the accompanying financial
statements, the Company had an accumulated deficit of $3,637,087
at September 30, 2013 and limited cash.

But WAIT, the company says 'limited cash' however on their corporate website it says (as of 2/24/14) "Our initial offering raised 2.5 million in operating capital for development and our share price (EARI) continues to perform well." When was this offering and where is the $$$$$$$ ?????

Again, as of 2/24/14 this is on their website unless they change it.

http://www.earigames.com/investorinfo.aspx

There is MORE:

Same filing, look at page 7, it shows now close to $6 million in paid in capital - GREAT so why is their 'limited cash' if there is $6 million in cash on the books????????

http://www.otcmarkets.com/financialReportViewer?symbol=EARI&id=114202

If they used that $6,375,458 in paid in capital to wash out the $3,637,087 they still would have close to $3 million on the books and NO debt.

Now in my opinion that is not 'limited cash'.

The purposes of these chat forums is to share information and opinion.

Here, this is PUBLIC INFORMATION. I think that people get blinded by wanting to make $$$$ then actually seeing what is really under the hood of the car.

This took 20 minutes to review.

It make sense to simply ask the company yourself and probably best to get a real accurate answer. After all you the public is buying their stock.

This is what I came up with for direct contacts off press releases and looking on the web:

President is
Mr. Mark Gibbs
published telephone for him: 585-739-9408
published emails:
[e-mail]
[e-mail]


http://www.businesswire.com/news/home/20121126006141/en/Entertainment-Arts-Research-Acquire-DailyApp-Dream#.UwvYXYVTDow

Here are published financials and filings:

http://www.otcmarkets.com/stock/EARI/filings

http://www.otcmarkets.com/stock/EARI/financials

The only business EARI has RIGHT NOW is the DailyAppDream.com site which seems that it does NOTHING.

I want to know what is the company doing with the $6 million dollars that it raised.

Looking forward to seeing other thoughts and input from folks on this factual data.

If we see a post 1000% defending the company then we know its probably EARI looking for a life raft.

I hope Mark Gibbs the president of EARI can provide information to support the statements from the company.