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Re: flaflyersfan post# 13032

Thursday, 10/03/2019 9:43:09 AM

Thursday, October 03, 2019 9:43:09 AM

Post# of 20102
The decrease of $105,573 or 15.4%, in 2019 compared to 2018 was primarily the result of a decrease in consulting expenses.
Our general and administrative expenses consist primarily of expenditures related to employee compensation, legal, accounting and tax, other professional services, and general operating expenses.

The above is from the MarketWatch website referring to, and perhaps copied from, the most recent SmartMetric 10-K.

REGARDING THE DOLLAR AMOUNTS FOR GENERAL AND ADMINISTRATIVE EXPENSES:
In the world of accounting there are two ways of reporting a company's financial situation: 1) the Cash Method--the company writes a check (a credit or reduction from a Balance Sheet item) and the account to which the check is written, let's say Salary, gets charged (a debit or increase in an Income item.) That seems to be your thought here.
2) the Accrual Method--here the company incurs an expense or cost to the company--such as salary. However, there is NO check written, perhaps there is no cash to pay the salary. Under this way of reporting a company's financial situation, which is required for all or many reporting companies, the Salary amount (General and Administrative Expenses in the case of SMME) gets charged as in the Cash Method. The Income statement thus shows an increase in General and Admin Expenses. But since there is no actual payment, the amount due for the salary becomes a Liability and is then Credited on the Balance Sheet as due to the employee.
BOTTOM LINE: SMME is NOT spending as you state. NO ONE is living on $1500-$1800 a day. And much of the amount stated as General and Admin expenses goes not to the CEO but to lawyers--you know what they cost-- accountants and other professionals.
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