M Line Holdings Inc (MLHC)

[eddy2]

When you buy a common stock you should be asking your self what it is your buying . A common stock represents a tax credit that eventually becomes a tax debt once the purchased tax credit is sold. If the offering is over sold it becomes a tax receivable held in trust by the equity holders. When a credit becomes a tax debt it will show up as such.

Equity debt and assets show on the balance sheet as outstanding shares and respectively assets. Tax credits are not bundled in with assets nor the equity debt but are part of the common share tax debt and tax receivables. Capital surplus and retained earnings are components of the tax debt and tax receivables.

The bottom line on the cashflow statement is positive for a cash tax debt owing and negative for cash tax receivable. Based on the spread between the two. Because a receivable holds a much higher risk because of its third party component then a tax debts liability and corresponding revenue liability the two values are regarded to be equal in nature relative to the liability they hold.

Anything else you want to know don’t be afraid to ask.