Silver Falcon Mining Inc. (fka SFMI)

[Imperial Whazoo]

OK, so lets think about what SFMI needs to do to make itself sellable.

The thinking we have been instructed to adopt is that SFMI's BOD is primarily interested in enriching itself by issuing itself free money.... free shares.

OK

So this line of thinking tells us that the only reason the BOD of Goldland issued itself

43,852,978 shares of its Class A Common Stock valued at $1,534,854

of SFMI was to enrich itself at shareholder expense.

Let me suggest a better explanation.

SFMI needed to remove a major obstacle from its books in order to grease the sleds on the sale of the company.

Far from being evidence of SFMI being a scam, the problem that got solved, as described in the extract from the link, is proof that SFMI is staging itself to sell itself, and is making necessary provisions to remove any obstacles to the sale.

Heres the problem SFMI faced.

SFMI had benefitted by having a BOD that is comprised of members who serve on both the BOD of Goldland and that of SFMI. From an IRS point of view, if SFMI wants to sell itself easily, it needs to avoid sending up a red flag.

Goldland deferred debt payments of a million dollars a year for the last seven years, if I'm not mistaken.

The high dollar tax firm employed by both Goldland & SFMI, W.T. Uniack & Co. CPA’s P.C., earned its keep by the manner in which it structured Goldland and SFMI's financials. There would have been a red flag sent up that would have screwed up the sale of SFMI if Goldland had deferred payment of the $1,000,000 dollar debt for an eighth year.

Now does anyone have any idea how the IRS would view a transaction where SFMI has an eighth year of deferred debt payments? The sale of the company would have had a big hiccup, thats for sure.

And the accounting propeller-heads of any entity that would be the buyer would flag this too.

The problem from a tax point of view was to begin to establish the bona fides of the debt that had been deferred.

How could SFMI have raised money to book payments with, (other than by issuing shares, and so forth, as described in the extract from the filing we were all shown)?

Well, SFMI could have gotten into bed with one of the vulture outfits. Does anyone actually believe that the shares the vultures would take would be priced at 3.5 cents?

If they had had to go outside the company to borrow $1,000,000, it would have meant issuing more shares and the share price would have been far more damaging to SFMI.

And you can bet your bottom dollar that, had SFMI issued shares at a great discount to raisie the money with which to establish the bona fides of the deferred obligations, the vulture company doing the lending would have destroyed SFMI's share price mercilessly by dumping the issued shares bigtime.

Count on it, people.

So, what W.T. Uniack & Co. CPA’s P.C. did was they used high-dollar accounting expertise and moved the debt around as described in the extract from the link.

Read the extract again. The way it was accounted for was to attribute the value in 12 parts, as payments for existing obligations.

One term for what they did is that they "sanitized" it

Thats the term the Federal Reserve uses, BTW, when it moves $85 billion a month from one side of the ledger sheet to another.

SANITIZATION

SFMI/Goldland had a problem to solve and they needed to solve it by avoiding making themselves victims of vultures who would have undermined the share price by dumping their shares.

The resulting situation places a chunk of shares in the BOD members pockets, and a lot of people find this distatseful, but the alternatives to this would have been far more damaging.

Debts claimed in past tax years will hold up to scrutiny because SFMI has established that it is in the process of making regular, scheduled payments for 12 months.

All in all, far from this being evidence of SFMI being a scam, this accounting maneuver is further evidence that SFMI is positioning itself to be bought.

Count on it, prople.

SFMI is not a scam.

Its a legitimate company and it is putting its affairs in order so that it can sell itself.

And face it, people, if I'm correct, far from management being a bunch of crooks, you are actually the beneficiaries of a management team that is about to make shareholders very wealthy.

Thats my opinion and I happen to know I'm right.

Hope this helps.

:o)

Imperial Whazoo