$ONCI--For those who look at the financial statements and analyze the results of the company, I have documented a few items of interest.
Look at the last page of the April 30, 2019 financial statements, page 19 of 19, which compares the amounts due to Related Party (Steve Berman). For the first 6 months of this fiscal year.
Accrued but Unpaid Comp $360,763 $240,763 $120,000
Unreimbursed Bus.Exp. (CEO) $441,902 $236,412 $205,490
Accrued but unpaid sales comm $1,187,106 $822,620 $364,486
5% loans to the company $950,584 $774,711 $175,873
"Accrued but unpaid compensation" increased by $120,000 ($20k per month for 6 months). Meaning he has not paid himself one dime in salary. If the company does well he will get paid down the road but during this growth stage, he is leaving it in the company to pay the bills.
"Unreimbursed business expenses paid by the CEO" increased by $205,490 during the first 6 months so he is paying for a lot of the expenses out of his own wallet.
"Accrued but unpaid sales commissions" increased by $364,486 during the 6 months. Divide that number by 12.5% and you get $2,915,888 which just so happens to be the total sales for the first 6 months with a few dollars of rounding. Once again, he has not paid himself anything in commission. It is a debt of the company to be paid in the future when the company is in a position to pay it back.
"5% loans to the Company" increased by $175,873 during the first 6 months.
Not only is he not paying himself a salary or commissions but he has used over $200k of his own money for business expenses and has loaned the company an additional $175k.
Accounts Receivable 10/31/18 was $4,851,862 plus 6 months sales of $2,915,884 = $7,767,746. This represents the money owed the company if they did not collect any cash for their sales. Now subtract the A/R on 4/30/19 of $6,575,831 and you get the amount collected during the first 6 months, $1,191,915. People are buying the product and the company is making money.
Good luck to all.
