Pervasip Corp (PVSP)

[RMD1]

Sorry to jump on late with boring GAAP facts but I believe this is why they filed on time. As I remember the SOX has a "mark to market" rule that at a certain point before the CD's convert, they have to take a look at the current share price and go off of that vs waiting up to the conversion point. Meaning that if the stock price rises before the conversions, they will not need near the amount they have A/S. However, and it also may be in the contract, they have to show they have enough shares to cover before the event. I have a feeling you guys are right. The reason they did not address this in the Q and filed on time is due to an expectation of an increase in revs. Hence the increase in A/S was just something that was required versus a necessity to keep the lights on.