Universal Energy Corp (UVSE)

[eddy2]

Bud they bought depreciated assets by the boat load when no one wanted them. The idea was to hook up to a revenue source to unleash the value in the assets. Money is collateralized using such assets but this is the clincher the value is also tied to the value of the equity sold over par.

So take the spread minus all sales and administration costs and that is your taxable revenue at twenty five percent approximately.

Apply that number too the outstanding shares owed set at par.

It's set up much like a condo maintenance retention fund for you Condo property holders.

Equity is owed to the members or owners of the condo. This is a taxable income. The income tax rate from the condo maintenance fee is off set by the depreciated assets.

So the equity figure is made up of two parts paid in capital plus a tax gained position.

The tax gain position is taxable hence the outstanding shares set at a par value that is owed back to the goverment.

The equity or share holders ownership is then often used in establishing credit from a lending institution noted as a cash position held on the books along with a liability charge.

Now the bank can underwrite the debt. This is called goodwill. To use the goodwill a company must come up with collateral. The collateral can come in many different forms. The higher the risk of the collateral the greater the capital cost to the stake holders.

The capital cost is paid out of the administration funds minus the cost of sale of the equity not product or services as many of you will think.