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Re: DONT SQUEAL post# 61619

Friday, 02/15/2019 8:36:49 AM

Friday, February 15, 2019 8:36:49 AM

Post# of 68548
not entirely accurate. LRS has the ability under the agreements to recover their expenses associated with handling the output of the digester from the LLC. Mechanically they are likely offsetting this against the LLC's share of the tipping fees.

I also think if they are following GAAP accounting, ECOS should be recovering some of their expenses against the "net profits from the digester" that they are required t pay over to the LLC. Under GAAP they should be capitalizing to inventory/./cost of goods sold some of their costs (part of their salaries and other expenses) against the cost of the digester. This would mean they should have transferred less cash (from the digester profit, if any) to the LLC form the first digester.

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