BioAmber Inc fka BIOAQ

[eddy2]

It’s debt ridden because depreciation has exceeded credit. The reason that is because debt has exceeded debted collateral. This is due to suppliers debt not having any collateral ie: treasury stock. Share holders deficit is collateralized debt.

Because shareholders have purchased the future tax revenue of the company that was collateralized creating a tax credit that you can use for tax depreciation that now becomes a tax debt owed too public share holders.

This debt is referred to as convertible debt that starts out as an asset that is sold becoming a debt that tax depreciation can be delivered upon.

Goodwill is often the early term given to it and write down of good will is used when referring to the back end of the contract.

There are many other terms as well but I won’t elaborate now on them.

The bottom line is that they run short on funds to promote and pay administration fees to run it.

It’s like having a coolaid stand and not charging enough for the coolaid and eventually you can’t afford to purchase the coolaid product any longer. Your consumables take over the business and it faulters until it’s paid back. Remember it’s not the parent company as a entity that owes but the owners who run it.