Aerius International Inc. (AERS)

[Cassandra]

The AERS balance sheet is bogus! Bill Luxon improperly claims over $2.4 million in start-up costs as an asset (and a "current" one at that). He also falsely claims a patent as an asset, however all intellectual property (including patents and patents pending) was sold to a private corporation also owned by Luxon in 2009: http://ih.advfn.com/p.php?pid=nmona&article=40517988

Regarding start-up costs:

Entities should expense start-up costs as they are incurred.
Resolved: Start-Up Costs Are Not Assets

IN APRIL 1998, THE AICPA ISSUED SOP 98-5, Reporting on the Costs of Start-Up Activities. It applies to all nongovernment entities most of which are required to adopt it for fiscal years beginning after December 15, 1998.

The conclusion seems simple enough: The costs of start-up activities, including organization costs, should be expensed as they are incurred.

Excerpt from: http://www.journalofaccountancy.com/Issues/1998/Jul/accapps.htm

The only asset Aerus has is whatever cash is in the bank accounts, which at 3/31/12 was reported to be $5,324: http://www.otcmarkets.com/financialReportViewer?symbol=AERS&id=83790

Embellishing a balance sheet is considered accounting fraud and is actionable by the SEC.

Note also that the company has no income whatsoever.