Alkane Inc (ALKN)

[eibbanker]

This is a pro-forma monthly operating expense report. Budgeted Fixed expenses plus the breakdown of the drilling projects.

These are not financials. I agree with Just_da_facts that expenses can have a balloon payment not in the monthly expenses. Secondly, the pro-forma income statement is missing.. ie. the operating revenue to calculate the operating income. I presume that is because their currently is no operating revenue due to the status of the company and projects.

That leads to the most important aspects of financials that are missing.. the balance sheet and the cashflows...

The balance sheet would tell everyone the current assets, debt/equity position, the equity breakdown and ownership/inter-company relationships. Even a fixed operating expense may not show intercompany receivables/payments if they are non-operating and part of the financing cashflows. Also, the balance sheet would show the current cash balances/ receivables and the ability to ensure enough funds to complete phase 3 (as stated)

The cashflow pro-forma even would give us indications about their financing activities and investing activities. Currently, we dont even have their operating activites or outstanding plans for impact on these monthly operating expenses.

This is a start.. a) Pro-forma Income statement (1/3 to half completed depending on other operating or budgeted expenses). b) Require Pro-forma balance sheet for reasons described above. c) pro-forma cashflow for reasons above.. d) and any budgeted changes to the future projects.. this would give indications for Future DCF so that you could really value the company and assess share price.