Amfil Technologies Inc (FUNN)

[BubbaInSC]

At_End_of_Day_FUNN_Survived_on_Backs_of _US_and_Canadian_Taxpayers
Otherwise, FUNN would certainly have gone belly up sometime during the past 3 years.
They took advantage; like many companies.

The accounting practices on how to reflect PPP loans as either Debt or Other Income is not in question.

The main point of bringing up the Loan Forgiveness For FY23Q1 is that it affects the financials for Operations; and ultimately net profits. Without the loan forgiveness of $316,582, there would have been continued negative net profits for the FY23Q1 of -$218,174.

Meaning, the company is still adding to cumulative losses every quarter - and is not close to being positive net profitability. They need to cut down on payroll; likely executive pay.

This does raise two questions for me.
What was the "other income" of $233,391 under Revenues come from?
Why is it a different number than the Other Income of $316,582 for PPP Loan forgiveness?

Any real accountants in the house?

Accounting for PPP Loans as Debt
Debt Model
Record initial cash inflow of PPP funds as a financial liability. Retain as a liability until either the loan is partly or fully forgiven, and the debtor has been legally released OR when loan is paid off. Companies should give consideration to accruing interest over this period as well. Upon legal release, you would reduce the liability and record a gain on extinguishment of debt for the portion that is forgiven. Extinguishment of debt can be presented in the other income (expense) section of your income statement.

GRANTED A SELF GENERATED P & L STATEMENT HOWEVER, HE IS PLAYING BY THE RULES ("record a gain on extinguishment of debt for the portion that is forgiven...can be recorded in the other income/expense section of your income statement).