Green Leaf Innovations Inc (GRLF)

[Warmy]

"Negative working capital" and "incurred cumulative losses" is not a debt owed.

Since GDSM has not had any revenue (until recently... maybe), expenses have been covered by the issuance of shares. The issuance of shares covers the debt but is counted as a loss for the year since there is no real offsetting revenue.

The "incurred cumulative loss" is the summation of these years of "loss" and is allowed by the IRS to be used as a tax offset for future earned profit. What this means is that GDSM doesn't owe $14Mil but it is on their "books" as a loss for future use against taxes. GDSM won't have to pay taxes on $14Mil of future profit. Look up "deferred tax assets" and "net operating loss carry forward" for more info.