Stevia Corp (STEV)

[wounded bear]

So, after posting my concerns here yesterday, I wrote to Mr. Blankenbaker to express those concerns to him and ask him and surprisingly I got an immediate response which I am happy to share with anyone who is interested. As a shareholder I was really pleased to hear that I was wrong in suspecting that there might be some impropriety. I won't post exactly what I asked, but will remind you with highlights. 1 and 2) I thought perhaps they were counting as revenue the proceeds of financing activity 3)I asked about the $750,000 officer salary on the Dec. 2011 annual report and the $281,000 director fees 4) I asked about G and A expenses, etc. 5) I asked if Farm management fees of $650,000 were paid to him 6) Professional fees of $352,000 seemed excessive
Here is his response to my concerns;
1) Revenue is defined as sales of product and services
2) Financing does not show up on the P/L statement .. it is reflected on the balance sheet
3) There has been no cash allocation to me or the directors. We are paid in Shares. The $750 listed for me were original founders shares issued to me at the time of the reverse merger when I put my assets into the company. These were escrowed and I earned these as the company reached certain milestones and they were valued based on the then current price of the stock. This is all explained in the original Super 8-K issued to the SEC in June 2011. We only do well if the company does well. As a founder .. I am restricted in selling my founders shares .. SEC rules limit to 1% of the outstanding float of the company per quarter.
4) The company took the stance that the exectutives .. me .. would not take a cash salary until the company turned profitable.
5) Farm management expenses are for the development of the farming operation which so far has generated $3 million in revenue
6) Professional fees are legal, auditor and filing expenses. They increased largely because of the S-1 filings that were/are required for the current financings.
This was all he said with no editing whatsoever. I hope it helps some of you who may have wondered about what was in the financials when last reported. Good luck to all.