Redwood Scientific Technologies Inc (RSCI)

[gnosis]

i cant understand this, but maybe one or two people on this board
can tell me

on cash flow statement
why the five million downward adjustment to net income
(when all other components of income this and prior year are an order of magnitude smaller)?

on balance sheet stockholder equity
how does this fit in with the approximately 5 million dollar reduction in retained earnings?

and why is their operating expense $6 million dollars?


apparently it includes the 5.5 million $ in stock compensation reported on the annual report page 28. which at last years prices would be a lot. 50 million shares?

who got that compensation and why? they dont have a big staff. they have the principals and a secretary or something is what i heard.

i guess that is that amount i saw before when i was noticing they sold millions (was it 70 million?) of shares for $50 grand?

and it shows up on the balance sheet as $5.5 million for tax purposes or something?

http://www.otcmarkets.com/financialReportViewer?symbol=GDGI&id=99097

http://www.otcmarkets.com/stock/GDGI/financials#


i think i have failed in due diligence by not already understanding these things, not that i am alarmed

david levy was already under indictment
but i wonder if his panamanian money launderer made off with the shares anyway

regardless, the SEC went over GDGI managements possible culpubabilty int his whole deal and they have been cleared of complicty by the verdict

and if there was something wrong about what happened with that 5 million, i think the SEC would have stumbled on that. is that not reasonable to think? its pretty striking on the ol balance sheet and they were investigating a multi year manipulation scheme, so in a sense, i would say this company has been extra-vetted, for a penny stock.