Sorry if it has taken 2 days to draw my own conclusions (as you suggested be done in your post).
You did make some interesting observations from the Q1 which also incuded the fact, correctly I might add, that the beneficial interest expense of $8.6 million for stock issueance is just a bookkeeping entry and not an actual operating expense expense.
The summary of your well explained observations were that 1) Net operating expenses decreased by 14%. 2) Decrease in loss from operations was nearly 30% and 3) Actual net loss decreased 26%.
I would like to offer a similar observation to the Q1 filing upon your suggestion to draw my own conclusions, as well as being on the same page as you and agreeing that the beneficial interest expense for stock issuance not be considered in the operational performance analysis.
The only point where your observations and mine will differ is that I will also not include the beneficial interest expense for stock issuance for the compared quarter of '05 as well as '06.
You've already done the heavy lifting and deducted the $8,679,000 bookkeeping charges for stock issuance during Q1 '06 and came up with $2,146,110 for operating expenses, $1,701,414 for loss from operations and $1,852,591 for actual net loss.
To compare year to year numbers accurately, I will deduct the $1,923,000 bookkeeping charge for stock issuance during Q1 '05. This results in operating expense of $570,933, loss from operations of $491,073 and actual net loss of $584,552.
The conclusions I drew were that net operating expense increased 375%, loss from operations increased 346% and actual net loss increased 317%.
Everyone should draw their own conclusions.
