Cal-Bay International Inc (CBYI)

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I think this is what your looking for;


I did talk to my friend a week ago and I have some good news/bad news about the Cal-Bay International situation.

I’m not sure if anyone here is a tax expert but corporate taxpayers with total assets of $10 million or more are required to report much greater detail relative to differences between income (loss) reported for financial purposes and come (loss) reported for tax purposes. I was told that this expanded reconciliation of book and tax income (loss) is reported on Schedule M -3.

Schedule M-3 is a response to recent financial reporting scandals such as Enron and So forth. It helps create greater transparency between corporate financial statements and tax practices by requiring that transactions that create book and tax differences be disclosed on corporate tax returns.

Because Cbay ceased issuing 10-k with the SEC, the adjusted net income (Loss in Cbay situation) amount must be reconciled with the amount of taxable income reported on the Corporations Form 1120.

So in plain English, Cbay is still incurring losses which are depicted through the reconciliation of Net Income, However . . . the good news is that the Schedule M-3 was filed so therefore we now know Cal-Bay International still has total assets of $10 million or more standing on the balance sheet.

I know many will have questions and I really don’t have time to answer everyone’s questions due to my travels. I’m just trying to help those stakeholders (not just shareholders) out with the lack of information about the CBAY situation. I’ll try and come back on Wednesday and answer some questions.
WIZ-