Artfest International, Inc (fka ARTS)

[specutator]

Edited II: So now we are off of the topic of the asset transfers between two separate legal entities and are now discussing the "PRICE of the PARENT COMPANY?"

You previously said if ARTS did another R/S, their shares wouldn't be worth anything.

If Starfest Direct was a wholly owned subsidiary and not a publicly traded company, you might be right about it having an effect on the parent. But with a shareholder owned public company, what assets the parent claims is dependent on the percentage of the shares of the 'subsidiary' owned by the parent.

Being a former FINRA broker, I'm sure you understand the accounting rule.

Added: This is probably out of date but I think you'll get the general idea:

1. <20% the investment is carried at cost
2. >20% but <50% reflects ability to exercise significant control and reports in a line item that takes the acquired company's performance and pro-rates it to the books of the acquirer.
3.>50% signifies control and requires the two companies books be consolidated.

Note item three requires the liabilities/assets of the sub to be included as a liability/asset of the parent.

As I said, passing from one hand to the other.