Accounting 101 always an interesting phrase but I think I have to try again with my question. I fully understand some shares can be issued for transactions - and if material would need to be disclosed on an 8k. So using "accounting 101" last quarter they needed over $40,000 in cash for operations. Even forgetting that one would expect if they are gearing up for production one would expect cash needs to increase, how are they covering the $40,000 quarterly cash need this quarter.
I agree,between the convertibles and the share issues for assets,services and liabilities,that came come off restriction after six months, that would explain the ongoing dilution.
They do have cash needs- transfer agent, utilities, regulatory filings, etc etc. The question is simple, how can they meet their cash needs without doing more convertibles ?
Middle Man ? So they would issue restricted stock to middle man, who would then re-distribute ( without being classified as an underwriter ?), or would sell after six months and pay company bills ? Or middle man is a jack of all trades ? Kind of interesting how a small busienss that has regulatory burden of being a reporting company can operate with $5,000 for a quarter.When middle man pays company bills, how is that recorded -as a loan ? contribution to capital? where would that be recorded ?
I do agree officers have every incentive to keep this company moving forward and probably look for every creative way to keep it afloat, but in the end some cash if required.
