There are facts and conclusions.
1) Fact: The address for 1094 Military Trail LLC has not changed their address.
Options for interpretation:
a) The deal never went through
b) Military Trail will operate as a wholly owned subsidiary of SPRV, and thus may not have to change their address, nor do they necessarily have to change the record of ownership of the property.
2) Fact: SPRV does not record the asset on the Q1 report.
Options for interpretation:
a) The deal never went through
b) The transfer wasn't totally recorded by the end of the quarter, so it wouldn't be on the report. However, note 1 creates a problem for this interpretation as it says that the report includes the accounts of Supurva Healthcare Inc. and it's subsidiary. 1094 Military Trail, Inc. However, I suppose timing could still be a part of this issue, though if this were the case, it should have been in a note or subsequent event.
3) Fact: SPRV's balance sheet from the quarterly report says December 31, 2021.
Options for interpretation:
a) A typo.
b) The data is unreliable, though the December 31, 2020 data appears to be correct.
c) They haven't reported their Q1 balance sheet. Obviously, the building's value isn't confidential as we can find it on the web already.
4) Fact: the company doesn't list assets at all.
Options for interpretation:
a) They have no assets, and thus no building.
b) They have assets, but from an accounting perspective, they were not recorded prior to the end of Q1.
c) With the mistakes in the balance sheet, mentioned in fact 3 above, it's hard to conclude anything.
5) Fact: the company doesn't show any revenue:
Options for interpretation:
a) They don't own the building. I don't think this can be concluded from that fact, though.
b) The PR said they acquired by building/company mid-March, lease payments are usually due the beginning of the month, revenue may be visible in the Q2 report. So, revenue wasn't expected to be reported in Q1.
6) Fact: The 5,000,000 preferred changed hands. No mention of the 10,000,000 common shares. Actually, note 4 mentions the 10,000,000 shares, but says that they will issue the shares.
Options for interpretation:
a) The deal didn't happen, but the preferred shares went to them for another reason.
b) Timing of the deal. The 10,000,000 common shares would be listed as a subsequent event, as a company like Pepsi would include those details if they acquired Frito-Lay in this year, and not 1961, I think. I didn't see the old 8-K from that deal, presuming they were both public then.
c) Maybe the 10,000,000 shares were not reported for another reason.
d) The 10,000,000 shares will be issued, but they haven't done that yet. This could explain why the building isn't listed as an asset, as the transaction isn't complete.
7) Fact: The quarterly report says 5,000,000 preferred shares are worth 0.00001 each. page 4 of Q1 report
Math: 5,000,000 shares time $0.00001 makes $50.
Option for interpretation:
a) Typo: The shares, like the others, are worth 0.0001, which makes them worth $500.
b) They didn't buy the building/company for $50, or $500.
c) There are undisclosed terms. Was there other cash involved? Where did the cash come from?
d) In mid-March, the price of the common stock was around 0.08, depending on the day you look at. That's $800,000. That's still not enough cash. However, that's close to the expense line in the statement of operations.
e) The actual value of the preferred shares is not actually recorded in the Q1 report. There are a total of 25 million preferred shares, according to the Q1 report (page 7).
Question: What is the cash value for 5,000,000 class A shares? I think I may have answered it above. If the 5,000,000 and the 10,000,000 don't add up to $10-14 million, then where is the rest of the money? One doesn't buy a $10 million building for $1,000,000 unless it's an as-is sale, and this doesn't appear to be that.
Question: Is the $812,464 the expense that will be covered by the 10,000,000 shares issued? Could be, based on the high numbers of the mid-March price valuation.
Question: Does 1094 Military Trail LLC own the building free and clear, or do they owe debt on the building? If they owe debt, why isn't the debt on the balance sheet given note 1 in the Quarterly report. If they have debt on the building, that may explain the low amount of cash (shares) given for the company/building as SPRV may be taking on debt.
I think there is enough to go forward thinking they own the building, as you say. It's also fair to say that they don't based on these facts and the fact that the Web to Door deal never happened according to the quarterly reports (but did according to the PR's put out by the company, and the Investor Relations link on Web to Door's website at the time). The facts speak both ways, and the Q1 report didn't settle the issue. It gave enough for both sides to strengthen their opinions, which really isn't what a quarterly report should do. We should be debating how well the company will do, not whether they actually bought the building they said they did. That question should have been answered in the Q1 report, and there is enough ambiguity to question that.
I'm sure I missed some facts, and maybe I messed up possible interpretations, but I think that's where the disagreements are, mostly.
