Jiangbo Pharmaceuticals, Inc.(fka JGBO)

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BigGreen101: do we agree that the difference between 9 and 2 Million in net income is not because "the money went somewhere" but that an amount of money is deducted from the 9 Million to 2 M because of the accounting rules with regards to the financing deals? But the money isn't gone...

It all has to do with dilution adjustment see my post no. 6414.
The term diluted doesn't just mean the share number changes, it also means certain amounts have to be deducted from the net income.

Dilution Adjustment
Dilution Adjustment represents the adding back to reported net income the interest expense of debentures when assumed converted, and the adding back to the reported net income the convertible preferred dividends when assumed converted. The adjustment is used to calculate Diluted EPS.