Veltex Corporation (VLXC)

[invest1980]

Shrotker,

I noticed something in the financial staements that does not add up. In the "Unconsolidated State Of Stockholder Equity" table, Stock issued for cash resulted in additional paid in Capital of $634,702 and Stock issued for Services resulted in $106,000 of additional Paid in Capital.

On the Statement of Cash flows however, there is a line called "Stock Issued for Services" in the "Cash Flows From Operating Activities" section for $120,000 (why is this not $106,000??) and there is no line anywhere that I can see in the statement of cash flows for "Stock issued for Cash". In all audits I have seen, issuance of stock for cash is in the "Cash Flows form Financing Activities" section as raising cash through the sale of equity is a finance function. Where one would expect to see Stock Issued for Cash in the Finance section, I see "Principle Payments on Long Term Debt" for
$755,450 as an inflow of cash. Normally a "payment" represents an outflow of cash. What am I missing here????