Flexpower Inc. (FLXP)

[Stratey]

The fact that the $500k was not reported in the financials affects more than just the P&L. The cash flow statement does not reflect a cash outflow of $500k and the balance sheet does not show a payable in that amount. Therefore, we know that it was omitted, or the PR announcing the expense was incorrect.

The addition of $500k to the current liability section would negatively impact net working capital.

Therefore, based on the omission of the $500k, the cash flow statement is incorrect, the P&L is incorrect and the Balance sheet is incorrect.

So, yes, you're right. There is no real impact on the financial statements credibility. We shouldn't have to worry that the financial statements are misleading. George Bush 1 coined the phrase "VOODOO ECONOMICS". Now, I'm coining the phrase "VOODOO ACCOUNTING". You've invented it!!