MediaTechnics Corp (MEDT)

[sensible]

Your math is wrong.

The total amount added to shareholders's equity on a consolidation is the VALUE OF THE STOCK sold to Forward minus any of Forward's liabilities, not the value of the oil, if any at all. The value of the estimated reserves is meaningless in this calculation. If Forward was buying MEDT, the total value would have been Forward's COST minus Forward's liabilities. In this case it's MEDT's COST added on the one hand and the total of Forward's liabilities subtracted on the other hand.

If I buy your company that owns a gold mine with $100,000,000 in proven reserves and pay you $13,400,000 in stock for it and you have a $7,000,000 note for it that you gave the hermit who owned it, my company will book $6,400,000, not $93,000,000. The $93,000,000 only goes on the books as it is sold, the $13,400,000 stays in Paid-In-Capital forever, the note might get paid, or better yet, converted to stock (that adds to Capital and Equity) and the gold, as it's sold, goes in as income and that amount, less expenses, goes into equity at that time.

If Forward finds 1,000,000 barrels of oil, it won't go to equity, it will go in as a footnote. If Forward or MEDT buys more reserves, the price of the stock will go on as equity.

Why don't you all wait until MEDT files their quarterlies before passing judgement. Ari will have to explain everything in great detail. Maybe Ari thinks that the 200,000 barrels plus Forward's potential (if any) is worth @$9,000,000 after Forward's debts right now. Maybe its not. Only time will tell.