Labwire Inc (LBWR)

[the_worm06]

LBWR caught in yet more False and Misleading statements in their SEC filings - the collection of Accounts Receivable booked as Revenues

see bold/underlined below from LBWR SEC filings


then read this:

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=35307504



Now read this:

When $208,000 in Accounts Receivable are written-off by LBWR, then collected in 2007, the adjustment in the financial statements is NOT with an increase in Revenues. The LBWR Revenues had already been previously increased when the services were originally performed and the Revenues booked in the LBWR Income Statement, along with Accounts Receivable in the Balance Sheet.

Since the writing-off of Accounts Receivable does not affect Revenues, you CANNOT increase the Revenues when the $208,000 is collected. This would be double counting.




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Posted by: Robsct Date: Wednesday, February 04, 2009 12:25:56 PM
In reply to: kuan who wrote msg# 10356 Post # of 10368

We can see the health of the company by how fast revenue is growing. Also LBWR has a very stable share structure. No diluting like so many pinks. LBWR is very near the end of the uplisting process to the OTCBB and is fully reporting to the SEC. LBWR had rapid revenue growth in 2008. Let's work with some figures. Here's the news release.

"Revenues for the three-month periods ended September 30, 2008 and 2007 were $1,292,472 and $1,352,671, respectively. The decrease in revenues is principally due to the inclusion in third quarter 2007 revenues of approximately $208,000 in collections on accounts previously written off. Adjusted for this $208,000 in revenues, third quarter 2008 revenues increased over third quarter 2007 revenues, primarily because of revenues from our Wyoming operations acquired during the fourth quarter of 2007. This increase is despite the expiration of a particular client's account agreement amounting to approximately $400,000 per quarter. We are currently in negotiations to resume services to this client, and we anticipate that revenues from this client may resume in some amount in the first quarter of 2009."

http://biz.yahoo.com/e/081223/lbwr.pk10-q.html

Now we can adjust Q3 '07 down by $208K to factor out the recovered revenue that was previously written off.

Q3 '07 adjusted revenue is $1,145K...so Q3 '08 revenue grew over the same period '07 by $207K which is 18% growth over same period '07. And that was with the loss of $400K in revenue from the expired contract not yet recovered. We topped Q3 '07 revenue (even with a $400K loss of revenue from one contract) WITH NEW GROWTH! If we had that $400K back, which they are working on, the Q3 '08 revenue would have been $1,752K compared to the adjusted Q3 '07 revenue of $1,145K! That would have been a $607K increase in revenue or 53% increase in revenue! So the numbers are not showing the new revenue growth because of the one temporary set back which they are working on recovering for 2009.