EcoloCap Solutions Inc. (fka ECOS)

[deal guy]

Kenny

ECOS financial statement should show a full consolidation of the operating results of the JV within its financial and a one line item after the income tax expense line for minority interest. That reporting would occur all during the year with each quarter's results. That is what GAAP accounting requires.

LRS would only show a one line pick up for their share of the income (loss) of the JV in a line called income from unconsolidated affiliates (or something similar).

Cash would be allocated once a year assuming the JV has positive cash flow. Cash allocation would not go through the income statement, but be reported as an offset to their investment in the JV.