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[eddy2]

Up until today we have avoided a topic that well is miss leading to investors of all skill levels and that is administration fees as well as sales on the other side of the two sided equation set up by the introduction of reporting on two entities at the same time now let me explain that and why it is done so.


If the one reporting entity that holds the capital surplus as well as the retained earnings can charge back administration fees as well as sales fees why can't the parent company do the same for shares sold under a class D registration process that is the process of creating revenue from the sale of shares that are restricted back to the said other entity as well the expense of that process and if a short sell it would have to record a depreciation for that sale against its retained earnings hence if you take retained earnings minus depreciation that isn't related to asset depreciation but sales of restricted securities under a class D registration.


So one can see how you can have sales from product sold were there was never a product ever sold other then equity debt bought.


What is done to one side of the equation has to be done as well to the other and were there is no inventory bought as well as used for constructing a product then how can there be a product.


So how is it they can say there building a product other then equity to be sold to the public and not have a product well very simply they buy equity in a company that has a product being made and sold and hence they can say they are producing that product due to a owner ship interest as well piggy back the financials from that purchase onto there own but if the material used seems small to what revenue is generated then that can be a red flag when comparing lets say a Apple Computer sales to computer sales that does not produce a product but is a generator of capital for the founders own interest as well as its shareholders.