Starfleet Innotech Inc (SFIO)

[FofoH]

I understand what you try and say but that unfortunately does not work:

* The only loan that SFIO has is from a bank in Belgium called KBC. No bank will take start-up shares that are only traded overseas for them and with the quality of Financials that SFIO has released.

* The sales of shares from CEO probably started in 2009, the European line of Credit however was only granted in 2010.

* If the share sale would have been used to pay back the loan or its interest, the proceeds of the share sales would need to be accounted for - as per US-GAAP accounting rules - as income in SFIO financial statements, which is not the case.

* Again, if the proceeds of share sales was used to pay back loan or its interest the repayment of the loan or payment of interest would need to be reflected in SFIO's financial statement, which is not the case.

* If they would have taken the shares to pay for service or as you suggest cash flow for financing, than they would NOT have liabilities in their balance sheet at balance sheet date, because there wouldn't be any more excising obligations as they would have paid the suppliers with shares. However, as of Dec. 2010 they have US$ 1,156k open liabilities, which is in fact an increase compared to the previous year.