Sunday, November 17, 2013 6:12:28 AM
We know that the past financials have been inaccurate and non GAAP compliant; they are not audited. We know that many errors and omission have been in past financials, by company's own acknowledgement, since the partially corrected subsequent statements have "prior period adjustments". Why does one assume 1st quarter financials are accurate?
It is more realistic that if any revenues are indeed reported, they are 1) errors in accounting treatment, or 2) non operating income and/or extraordinary gains and losses
Advance fees wrongly recorded as revenues
I have previously explained the company's history of getting advance payments (cash) for future liabilities, i.e. selling future concessions on non-existent ships for upfront cash.
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=94055592
This is probably the $800,000 advance and liability for the future consulting services. Similar to the mid 2012 Hard Beverage - NYC $50,000 advance for beverage concession that was defaulted and is a liability.take the money and run
Extraordinary Gains/Losses and Non Operating Income
A better explanation of the $2.5 million revenue is an non correct accounting of the PR announced partial sell of PVEI's toxic debt.
When the company assigns and sells off toxic debt they cannot pay,. the toxic debt financier receives hugely discounted shares, PR has stated that 1.2 billion of unrestricted shares were issued (probably to toxic debt financier) and we have experienced IMO this dumping of the toxic debt shares on the market this week. I have previously identified, who IMO, the toxic debt financier is:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=94069339
The sell of the debt and issuance of company stock would be recorded normally as
reduction of debt, issuance of stock at market, and a LOSS recorded reflecting the Discount on the shares.
Thus, something like this should be recorded (estmated):
Debit Retirement of Selected Debt 4,000,000
Credit Extraordinary Loss / Discount of shares issued 1,880,000
Credit Issuance of Stock (par) 120,000
Credit Pd in Capital - market value of stock issued less par 2,000,000
Company probably just recorded inaccurately:
Debt Retirement 2,620,000
Revenue from Debt Retirement 2,500,000
Stock issued (par) 120,000
Thus the above two scenarios would account for the supposed revenues, PR announced settlement/sell of some toxic debt, and cash receipt of advances for services.
UNTIL THE FINANCIALS FOR 1ST QUARTER ARE RELEASED AND ANALYZED, NO ONE SHOULD ASSUME THAT ANY SUPPOSED REVENUES ARE ACCURATE OR FROM OPERATIONS. THE MORE LIKELY SOURCE OF ANY 1ST QUARTER REVENUES ARE FROM EXTRAORDINARY GAINS/LOSSES AND POOR ACCOUNTING
REMEMBER, THE COMPANY HAS NO SHIPS, HAS NOT ANNOUNCED ANY OPERATIONS, AND NO OPERATIONS HAVE ANY VERIFICATION OF SUCH.
WE WILL JUST HAVE TO WAIT TO SEE WHAT THE FINANCIALS STATE WHEN RELEASED
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