TheDirectory.com Inc (SEEK)

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On page 15 of the SEC quarterly report, under Going Concern, there is an ambiguous opening 2 sentences I'd like anyone's comment on. And further down the paragraph other questions are raised. What do you all think of this?

---"Note 3-Going Concern
The Company generated an operating profit of $13,491 for the quarter ended August 31,2011. The company generated a net profit of $991,497 for the quarter ended August 31,2011 primarily as a result of its accounting entries relating to its debt renegotiating package, during the quarter the Company took a onetime, non-cash accounting income entry of $978,006. On an operating basis the Company incurred an operating loss for the
nine month period ended August 31, 2011 of $116,828, in addition the Company had an accumulated deficit of $8,400,793."---