Thanks for the reply. I agree this is an interesting situation, or else I wouldn't be looking at it!
I will just list some of the things sticking in my mind..
1. None of the company's financials are audited, not even the annual report.
2. FWIW, yesterday's annual report lists (as of Aug 25, 2014):
103,316,636 Class A Common Stock 25,000,000 Class B Common Stock 0 Class A Preferred Stock
So I guess we use 103M for the O/S count until we find out what those B shares are; you are right, the company itself excludes them from per share numbers, etc.
3. I thought this was an interesting line from the recent report:
And in the financial report notes:
It shows that $825,765 was owed to Reyes Group a year ago, but now that amount is only $165,153, a difference of $660,612, or 80%.
There is only one loan shown in the liabilities on the balance sheet: the $165,153 owed to Reyes Group, a "production loan".
Finally, in the Financing section of the Cash Flows statement, we see that BSEG used $660,612 for "Principal Payments on Production Loans - Related Party".
SO, did they write it down or did they pay it in cash?
If you write off a loan that you owe, I don't think you count that as "cash used" on your Cash Flows statement.
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