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Thursday, February 19, 2015 5:04:49 PM
Balance Sheets can be rather confusing. So let's do a quick breakdown:
NTEK has $4,118,533 in Current Assets. KEEP IN MIND, because of accounting rules (accelerated depreciation, etc), major assets may be listed on the balance sheet at substantially less than their actual value -- or might not be listed at all -- which skews the true value of assets on the balance sheet. $4,118,533 is a VERY CONSERVATIVE NUMBER. I can guarantee it's MUCH MORE.
NTEK has ONLY $507,854 in Current Liabilities. With cash flow increased a whopping 400% from last quarter, this number is a drop in the bucket. Current Liabilities is simply the debt NTEK needs to pay over the entire next year. The fact that NTEK has only $507,854 in short-term debt at this stage is EXTREMELY impressive. Put into perspective: that's basically just the average cost of a house in California, and our product is set to be on EVERY 4K TV sold in America...(not to mention all the other products). And we had nearly 1 million is PROFIT in this quarter.
NTEK Cashflow has increased by 400%
NTEK Profit has increased 270%
Onto today's 'big talking point': Stockholder Deficit. Stockholder Deficit, in this case, is just another way to show Assets. Dont believe me? The assets and stockholders deficit numbers are EXACTLY THE SAME at $4,872,765
Quick breakdown of this, cause it can be confusing to some...
STOCKHOLDERS' DEFICIT
Common Stock, $.001 par value 724,874,022 issued $(724,874) (this is just the shares outstanding, at .001 par-value...)
Additional Paid-In Capital $(5,685,245) (any payment received from investors for stock that exceeds the par value of the stock. please see *** below for explanation)
Deficit accumulated during the development stage $2,108,208 (Debts company owes long term. 30yr loans, 5 yr loans, multi-yr leases, etc. Think of this number like NTEK's total morgage... and its ONLY 2 million... EASY AGAIN!)
Total Stockholders' deficit $ (4,301,911) Just the above added together
TOTAL LIABILITIES and STOCKHOLDERS' DEFICIT $ (4,872,765) Total assets.
Stockholders' deficit section is normally pretty whack with OTC firms because the par value of a share is not nearly representative of market value. See the note below for a quick example... it helps explain a bit.
My overall thoughts: It's pretty huge guys that we saw a MASSIVE increase in cashflow and profit. Honestly, I am impressed that revenues stayed flat too. I was expecting a pretty big dip given that the company was in the middle of refocusing from the NP-1 to Ultraflix. The fact that they kept the $$$ rolling despite this is a HUGE validator. And remember, Ultraflix had about half the content during this quarter (and no movies).
**** For example, the board of directors of a business authorizes 10,000,000 shares of common stock at a par value of $0.01. The company then sells 1,000,000 of these shares for $5 each. To record the receipt of cash, the company records a debit of $5,000,000 to the cash account, $10,000 to the common stock account, and $4,990,000 to the additional paid-in capital account
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