Artfest International, Inc (fka ARTS)

[Kool Aid Man]

"What are the ASSETS" you ask?

Well here's a copy (see link below) of the fiction Eddie Vakser submitted as of September 30, 2010. He lists total assets of 5,721,801 (a small drop from the previous year) of which two items stand out:

1) "INVENTORY" --$1,351,397 (a tiny increase of $11,147 over the previous year --apparently the stuff is unsellable). Oddly enough, the much ballyhooed and hyped "Picasso" sculpture appraised at between $50-70 million is nowhere to be found!!!

But by far, the largest "asset" on the books is (hold onto your shorts)...

2) "GOODWILL" --$3,637,706!!!! Seroiusly? Eddie thinks the warm, fuzzy, positive, confidence inspiring power of his 'brand' is worth over $3.6 million? In another head-scratcher, Eddie dropped the value of his "goodwill" $141,794 over the previous year at a time when his hype machine was working non-stop.

SO when you add unsold INVENTORY (1,351,397) + GOODWILL (3,637,706) you have a grand total of $4,989,103!!! So take those two items out of the equation and Artfest has assets (according to Eddie) of::

$732,698 .. and I personally think that's WAY too high! Afterall, he's booking $187,089 as depreciation of "Property, Plant and Equipment."

Again.. Eddie generates these figures himself and sends them to his accountant for rubber-stamping. The accountant's disclaimers give him a giant hole to jump through to avoid any liability so what does that tell ya?

http://www.faqs.org/sec-filings/101122/ARTFEST-INTERNATIONAL-INC_10-Q/