Drone Services USA Inc. (DSUS)

[Seaam]

RE: $4,641,000 in Use of Proceeds, identified as Acquisition of assets.

Possible answer ... since so many GAAP disclosures omitted...


I believe the $4,641,000 in Use of Proceeds, identified as "Acquisition of assets, net of liabilities" is related to non GAAP accountingg of the Ocean Star Pacific disaster and the Korean Expo. It is in the correct accounting fiscal period and approximate to the amount I personally expected.

Rather than expending the loss, IMO, THEY HAVE BURIED THE LOSS IN THE PP&E ASSETS, without proper required GAAP disclosures. Further, the Source and Use of Cash shows no advancement from the Koreans for the charter. There is no required disclosure/footnotes for an conversion of the Advance

It does not tie directly to the change in balance of PP&E between periods on the Balance Sheet which is $4,860,217. Since we know that the Korean Expo was advancement of monies of $5,000,000 and we know that according to Peter's P/R and the Press,see link:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=78970319
As per Peter's Press representations, the early charter payment of $1,600,000 was made on OSP. We have major non disclosure and major non footnote on these financials. Probably, this $4,641,000 is the non expense loss from the Ocean Star Pacific disaster.

And notice on the Revenue and Expense Income Statement for the fiscal period covered, no loss is recorded for the Ocean Star Pacific(replacement vessel for Korean Expo)r, abandonment and loss on the original vessel, the Emerald, etc.

Of course, this is only my opinion using the very limited information non disclosed information that was provided in the Annual Financials. Did anyone see any mention of the Ocean Star Pacific and Korean Charter in the financials.

Until we have proper accounting and review of such records, as required in the Corporation Articles of Incorporation, I would consider the Annual Financials inaccurate and not to be relied upon. Any shareholder of six months has the complete right to review in detail all financial records of this corporation.

Also, IRS requirements would require a complete reconciliation by detail of all these accounts to tax basis, so nothing ultimately can be hidden. It is going to be very scrutinized.

REMEMBER THESE FINANCIALS ARE NON GAAP, NON AUDITED, AND PREPARED BY AN ACCOUNTING/BOOKEEPING SERVICE NOT REGULATED BY THE ARIZONA BOARD OF ACCOUNTANCY. ALSO, THEY HAVE NOT BEEN PRESENTED TO EITHER FINRA OR SEC, ONLY OTC NON-REGULATED FILING.

The Annual Financials are what they are.

On another note:
I note the multiple defaulted N/P in the footnotes and commend the disclosure of such. However, based on the court documents of Larry Sazant and Quang Meredith, neither of those liabilities have been reflected in these financials. GAAP accounting requires their accrual. Even if completely disputed, and Quang's cannot be since the "judgement is for the defendant" as reported by a poster., These liabilities need to be booked under the "remote, possible, most probable" criteria. Makes you wonder how many other liabilities are under reported.


My Pitch as always is,
"Be careful. Due diligence does not support many of the company's past statements. CEO is not to be trusted, trying to build company by hook or ______, i.e. smoke and mirrors. Watch for solid announcements / PR's. Discount & ignore 100% any "forward looking" PR. Lookout for legal horseplay."