Decision Diagnostics Corp (DECN)

[loanranger]

You're welcome. It's a statistically insignificant difference and the issues are the same.....Why the HUGE write-off?
"On March 31, 2020, we estimated that we would have approximately $450,000 in bad debt due to the COVID-19 pandemic which has led to the closing of businesses, particularly those that offer their own product fulfillment services. Accordingly, we have recorded bad debt expense of $450,000 for the quarter ended March 31, 2020."
One or all three of those customers had to contribute to "the closing of businesses"....which one(s)? Employee Kimberly Binder's business? Where's an auditor when you need one?


And since it's the very next paragraph in the report, what's this all about?
"During the course of a year-end review of our debt with our noteholders, we mutually identified Original Issue Discounts(“OID’s”) associated with the notes totaling $537,516. We have recorded these OID’s by increasing notes payable and interest expense as of the quarter ended March 31, 2020."
That is patently ridiculous. Of all people YOU should know what an original issue discount is and you can bet your ass that Berman does, too. It doesn't require a year-end review. A brief example for those who aren't familiar:
The Company wants to borrow some money....it needs $90K. It doesn't want to pay a high interest rate so it makes the following deal with the lender:
"We want to pay a lower interest rate so you can write the loan for $100K....and we'll pay you interest on that amount....but you only have to give us $90K in cash."
That transaction results in a $10K original issue discount that has to be accounted for. How it's accounted for is less important in this example than the fact that the original issue discount is part of the terms of the note, which are obviously known WHEN THE LOAN IS MADE. The idea that Berman needed to get together with the noteholders and "identify" the original discounts that he absolutely 100% had to know about when the loans were made is BULL. Anybody that believes it just doesn't understand it.
This LIE needs to be put into a numerical context:
"we mutually identified Original Issue Discounts(“OID’s”) associated with the notes totaling $537,516"
That's not the amount of the Notes....that is the amount of the discounts, in other words the portion of the loans that the Company DIDN'T receive. And that they suddenly realized that they had to account for.***

A $537,516 surprise? To someone who has been responsible for the financial statements of public companies for at least a couple of decades? It's laughable.


DECN should have been suspended long before this. The fact that the CEO has recently expressed himself in a way that the SEC (and most humans/investors) can't understand, taking advantage of a health crisis that is literally affecting all of humanity to suggest that he has, or had, or may have a product that can help, is just the latest good reason.
If the SEC is having a problem justifying this suspension they really just need to read his OTCMarkets financial reports. Or take a close look at who is trading the common. Or a look at the noteholders and preferred shareholders.



***BTW, in the real world of public company accounting the SURPRISE about the failure to have recorded such a material adjustment as of year end wouldn't be fixed by simply making an adjustment in the March quarterly reports. It would require a restatement of the 12/31/19 year end financials, which were and are now acknowledged to have been, WRONG to the tune of over half a million bucks. Why hasn't that been done?


Keith Berman alone is responsible for the preparation of the financials, per the Company Attorney.
https://backend.otcmarkets.com/otcapi/company/financial-report/242873/content

Per the Keith Berman Certified Supplementary Report submitted to OTCMarkets:
Accountant or Auditor
Name: none
https://backend.otcmarkets.com/otcapi/company/financial-report/245886/content