To add to that
I sent a email to the company and the quoted response is
"Thank you for your question and I believe it is at the heart of certain misunderstandings about our company. The accumulated deficit is the sum of all prior losses for the company. Our accumulated deficit is nearly $35 million and is the result of losses from our entire public operating time frame. It can actually be an asset as significant portion of it can be used as a tax loss carry forward to eliminate paying taxes on profits in the future. We have been profitable for the last several quarters and this deficit is coming down.
The debt is what the company owes at the current point in time. As of our last financial report, for the quarter ended June 30, 2014, our total debt is $1.9 million and our total liabilities, which include accounts payable and other normal operating expenses, is about $6.3 million. We have enough assets, which have increased by $4 million over the last 12 months, to cover all current liabilities. Our debt and liabilities both declined last quarter. The company is in the best financial shape that it has been over the last several years and our debt to sales ratio is fairly small.
From an analogy standpoint think of a credit card bill. The accumulated deficit is the sum of everything you have owed in your lifetime, but the debt is your current balance. While not an exact analogy I hope you understand that there is zero correlation between accumulated deficit and debt. Even if our debt was zero, we would still have a large accumulated deficit until we achieve enough profits to offset this. Accumulated deficit is a cumulative number that has little to do with our current progress. It merely suggests that in the past we have accumulated losses on paper, something that has changed dramatically in recent quarters.
Hope this helps."
LOOKS GREAT GOING FORWARD
AI
