PowerLinx Inc (PWNX)

[gotinearly]

Lets visit the footnote regarding shipping...

Being in the profession I can understand how this could happen (I don't run my business
this way, but I can understand). First, a compilation requires absolutely no verification by
the CPA. The CPA has a canned footnote that states Revenue is recorded when product
is shipped. (no problem). However the company reports to the CPA that sales are X and
A/R is X. The company has based its calculation on the SEC allowable method as
posted earlier by me. Then provided the summary data to the CPA for preparation of the
Financial statements.

In this sinario, there is no fault on either party and no intent to defraud. Just a simple
miscommunication. Sure, it can be said that SEVU should have caught the descrepancy
between the footnote and actual reporting method, but with RICH handling the whole
show (trying to save money) this to is understandable.

This problem has been corrected via the hireing of 3 professionals to handle the aspects
that Rich was doing as well as R & D.

This is why I believe the restated reports will fall under the changed rules. the benefit of
the doubt will most likely fall to SEVU.


JMHO