Replies to post #163410 on American Green Inc (ERBB)

[IBurnPurpleKush]

.... Paid-In Capital...Accumulated(Deficit)... Total

Balance at June 30, 2012 $13,287,911 ($16,873,385) ($2,610,643)

Balance at June 30, 2013 12,599,891 -17,638,968 -2,353,561

Balance at March 31, 2014 12,631,711 (18,679,067) (2,130,782)

Net (loss) for the nine months ended Mar 31, 2014 (1,040,099)

Net (loss) for the year ended Jun 30, 2013(765,583)

http://www.otcmarkets.com/financialReportViewer?symbol=ERBB&id=120695

page 6...

Definition of 'Additional Paid In Capital'

A value that is often included in the contributed surplus account in the shareholders' equity section of a company's balance sheet. The account represent the excess paid by an investor over the par-value price of a stock issue. Additional paid-in-capital can arise from issuing either preferred or common stock.



Additional Paid In Capital
Investopedia Says
Investopedia explains 'Additional Paid In Capital'

For example, assume that a company issues 1 million shares with a par value of $50 per share. When the shares are purchased by investors, however, they pay $70 per share - a premium of $20 over par value. When the capital received from this issue is recorded, $50 million ($50*1 million) will be allocated to a share capital or paid-in-capital account. The excess $20 million ($20*1 million) will be allocated to the contributed surplus account as additional paid-in-capital.

Some companies will choose to separate additional paid in capital from contributed surplus on their balance sheets.

ac·cu·mu·late
?'kyo?omy??lat/Submit
verb
past tense: accumulated; past participle: accumulated
gather together or acquire an increasing number or quantity of.
"investigators have yet to accumulate enough evidence"
synonyms: gather, collect, assemble; More
antonyms: dissipate
gradually gather or acquire (a resulting whole).
"her goal was to accumulate a huge fortune"
gather or build up.
"the toxin accumulated in their bodies"


Stockholder's deficit represents a negative book value of a publicly traded company, i.e. the company has greater liabilities than assets (It owes more than it owns).Though investors holding stock in a company reporting a stockholder deficit aren't responsible for the debt, they have a lower (but not zero) chance of seing a short-term return on their investment.

Small Business > Accounting & Bookkeeping > Accounting & Business
What Is a Shareholder Deficit?
by Cam Merritt, Demand Media
If an incorporated business has more liabilities than assets on its balance sheet, its financial statements will show a shareholder deficit, also called negative stockholders' equity. A shareholder deficit can be an ominous sign for your business, although the fact that one exists doesn't necessarily mean the company is in dire financial shape. It all depends on your circumstances.

Accounting Equation
A company's balance sheet illustrates the fundamental accounting equation: "Assets = Liabilities + Equity." Put another way, it's "Equity = Assets - Liabilities." In other words, the difference between the company's assets and liabilities is the owners' equity in the company. In theory, if the company sold all its assets and paid all its outstanding bills, equity is what would be left over for the owners. If the liabilities on the balance sheet exceed the assets, then the equity is negative -- a deficit. In the case of a business organized as a corporation, the owners are shareholders, so such as situation is referred to as a "shareholder deficit."

Losing Money
Shareholders' equity consists of two elements: contributed capital and retained earnings. Contributed capital is the money the company received from selling stock to shareholders. Realistically, this amount won't be negative, so if the company is showing a shareholder deficit, it will be because retained earnings show a deficit -- one that exceeds the amount of contributed capital. Retained earnings is the sum total of all the profits and losses the company has experienced in its history, minus any dividends paid to shareholders. If retained earnings are negative, it generally means the company has been losing money -- which is how a company winds up with liabilities in excess of assets.

Related Reading: What Is a Net Deficit?

A Bad Sign
A shareholder deficit can be, and often is, a bad sign. It means the company not only has been losing money, but has lost more money than its owners put into the company in the first place. Losses drain assets. On the other side of the accounting equation, a company that borrows money to stay afloat winds up with ever-greater liabilities. As the company accumulates debt, it has to spend more money just servicing that debt -- paying more interest at higher rates -- which makes it harder and harder to dig itself out of the hole. This is exactly the kind of spiral that sends a company into bankruptcy.

[iSmellCrickets]

I'm not in the know about the contract between the vending machine and the terms involved. Though that would be nice.

I believe and could be mistaken, however i do recall reading / hearing in one of the interviews, that the lease is $100.00/month ( I've also read where people were claiming several other amounts close to that) , so this can only explain that there is another investor, prospector in so many terms. How this can turn a wash and in what timeframe is also eluded me. At the same token, I'm personally not all that interested in consuming myself with such details with the current state of ERBB's market of the machine. However details like this could be very useful in determining dividends in the future of ERBB with their endeavors. As the company continues to grow and expand.

There is a blank space between the cost per month to lessee , the turn around and the expected profit margin. Why this is left out can only be reasoned to with the explanation that ERBB is likely doing deals with individual companies on the machine at their own discretion and contract.

When I invest either my time or finances in the future of any endeavor, that is not in my personal control, I must insure I have faith in the business practices, that the people behind the investment are not without vision, as well as insure there is a market for the idea. Which I have done years ago.