Grupo Resilient International Inc (GRUI)

[Jimmy Quick]

Ok, here is my opinions of the financials.
The $3M adjustment is old news from 3rd quarter as Ward has stated, and was actually the most impressive thing that was done to show Fred's sincerity with this company. It was fraud, but by Frank Moody and a good reason for Frank to be forced out.

Yes, we have debt, yes debt is not good, but debt usually comes with start up companies. Almost all of us went into debt when we bought our first car or house, does that mean that we can't afford it or it was a bad decision. NO!! Would we like to see no debt. YES!! With a car 5 years and we are debt free, should a business be that much different.

Capitalized costs come with the development of new products and advancements to current projects until they are ready for production. Software costs are about the only thing that is allowed to be capitalized, so I don't see a problem here, as long as everything involved with the development of the CT is software costs. We are still working on several versions of the CyberTracker. GSM, solar powered unit, etc. But also notice that these only went up slightly $10K from 3rd quarter. Don't see an issue here. In addition to that, the Captilized amount also decreased by $800K from 2nd to 3rd quarter financials. Also changed by Fred, once again should we really be going against what Fred has been trying to do here.

The thing I noticed about the financial statements that I didn't like is the fact that Accrued Payroll Taxes, Payroll Tax Liability, and Sales Tax Liability and another category amount did not change at all from prior quarter. This doesn't seem reasonable to me. This tells me that the right amount of attention was not given to these financials and leads to the potential of them be inaccurate with more than just the exception of not being audited.

I still have faith here.