ss9173 - I just got in, and I have not had time to review the financial statement. I have been in the emergency room for 4 hours. Broke a bone in my ankle.
From the best of my memory, NEOM's debt was restructured again in 2006, due to the purchase of the subs. In the 2005 restructured debt NEOM, had a gain on the restructuring of 2005 debt. Each time, in the past when I have stated that NEOM had a gain on restructured debt, I was referring to the only financial statement out at that time, which was the 12/31/2005 financial statement. It appears to me that what you are reading is a netting of three or four items on the cash flow statement.
For 3/31/2006 (I have not reviewed it yet), just reviewing your post, the cash flow statement will reflect a comparision of 12/31/2005, with 3/31/2006, plus 2006 will also include losses on discounted stock (cornell's fees) sold to Cornell in 2006. If there was a gain at 12/31/2005, and NEOM, increased the SEDA, there will be a net difference of a loss, between 12/31/2005 and 3/31/2006, because the fees are higher in borrowing more money to purchase the subs.
I will review the financial statement and get back with you, if you have not figured it out by then. Just remember the cash flow statement is the net change from the end of one period to the end of the next period.
This may help. The normal balance of Assets is a debit - positive no brackets. The normal balance of Liabilities is a credit with brackets. In the cash flow statement you may see normal debit balance account with brackets - credit - such as cash. This means that cash decreased from one period to another. Accounts payable is a credit account. If accounts payable in the cash flow account has a debit, this means that accounts payable decreased, and this is a "use of source of funds" in deceasing accounts payable.
This must be confusing - forget it - I doubt there is a net increase in cash flow anyway. Must be the shot ER gave me, to think I could explain this. Gotta get a cup of coffee.
