Look at the After-Hours Run. I take it very few people actually do any Analysis of Quarterly Reports anymore.
Just one look at the numbers I have tracked for over a year, ARCI now officially is in the "Red" for both Adjusted Book Value (-$468K) and Working Capital (-$3,501K). Intangibles represent 58.95% of Assets.
People appear to be trading on a single mention of a Potential Buyer signing a Non Binding Agreement for the Recycling Business. No guidence of Price Range like before, let alone a mention of how the last potential buyer passed.
A few times too I had mentioned their CA Sales Tax Issue. Looks like they have a meeting with the CA "BoE" on May 21 t9 negotiate as they now have lost all appeals. ARCI owes CA over $4.7 Million and that is just for the 3 years in question. Sure seems people are not looking at that huge liability hanging over the Recycling Business.
Compensation Expenses dropped. I can only assume this was the Firing of Gregg Sullivan.
However, ARCI mentioned performing required Impairment Tests on Intangibles in March including the Geotraq Patent and found no impairments exist. I find this highly suspect. $10 Million of the Original number is a suspect Deferred Tax Asset on Future Geotraq Sales. ARCI "Baked" this into the numbers, whereas the real numbers need to be the Carrying Cost of Acquisition (which was $200K Cash, $800K Loan and the value of the288K of Preferred Shares).
From what I understand the $800k loan was "Satisfied". ARCI Corporate Secretary wasnt forth coming if this was a writeoff or if their was a transaction between the 3 Geotraq Shareholders of Recordback to ARCI.
