David Lazar's OTC SPAC's/CUSTODIAN Plays

[nsomniyak]

People here need to understand where this paid up capital item resides on the balance sheet and what that means.

The basic balance sheet equation is
Assets = Liabilities + Equity

The paid up capital is part of Equity - just a plug to allow the equation to balance. It is NOT an asset you can sell or spend. It is also not a negative, a liability that the company must ultimately pay. It is a mathematical construct!

Equity can be broken out several ways - broadly speaking it would be something like Equity = Paid in Capital + Retained Earnings (my cost accounting is rusty) to distinguish what was supplied by shareholders vs. what was generated and kept by the business.

The only thing the number means for us is that TRDX is now associated in some way with an entity that has raised substantial capital amounts over its past existence. I stress the "in some way" in that there are a lot of ways this could work out other than having all the assets of that company somehow vended into TRDX.