Rennova Health Inc (RNVA)

[powerbattles]

WRONG! LET'S NOT TWIST THE STORY. THE TERM YOU USED AS SHAREHOLDER EQUITY NEGATIVE IS INCORRECT AND THAT IS NOT A PROPER WORD TO USE. $18.7 IS THE TOTAL STOCK'S HOLDER'S DEFICIT. "Roll down to the bottom of the page 3"
https://www.sec.gov/Archives/edgar/data/931059/000149315217013618/form10-q.htm

JUST IN CASE YOU DO NOT FULLY UNDERSTAND THE TERM. THE STOCK'S HOLDER DEFICIT IS THE ACCUMULATED EARNING TAX. RESTRICTED RETAINED EARNINGS. STATEMENT OF RETAINED EARNINGS.

OK! NOW LET'S LOOK AT WHAT IS THE RETAINED EARNINGS OF A CORPORATION.

The retained earnings of a corporation is the accumulated net income of the corporation that is retained by the corporation at a particular point of time, such as at the end of the reporting period. At the end of that period, the net income (or net loss) at that point is transferred from the Profit and Loss Account to the retained earnings account. If the balance of the retained earnings account is negative it may be called accumulated losses, retained losses or accumulated deficit, or similar terminology.

"A stockholders' deficit does not mean that stockholders owe money to the corporation as they own only its net assets and are not accountable for its liabilities, though it is one of the definitions of insolvency. It means that the value of the assets of the company must rise above its liabilities before the stockholders hold positive equity value in the company.

BOTTOM LINE THE RETAINING EARNING BY THE COMPANY INCREASING THE COMPANY'S SHAREHOLDER EQUITY, WHICH INCREASES THE VALUE OF EACH SHAREHOLDER'S SHAREHOLDING.

To get a clear pic. The company normally subject to pay tax on the net income. The amount added to retain earnings is the after-tax net income which is considered the tax carry forward as write off. THIS CREATED POTENTIAL TAX AVOIDANCE FOR THE CORPORATION.

An accumulated loss doesn't affect future damage. it benefits the shareholder because the tax write-off is potential tax avoidance which is damn good in my book.

https://en.wikipedia.org/wiki/Retained_earnings