Thanks for the help, Dumb. I think everyone on here wants to fully understand the net worth since it is critical to the value of the stock.
I agree with all you said. The draws show up twice in the balance sheet - once as cash or equivalent in the asset section, and once as senior preferred stock in the liabilities section. Do we not agree?
So when they take a draw - the same numbers appear on both sides of the balance sheet and cancel out, so no change to net worth. What am I missing?
I do want to correct where you say Deficiency Amount is assets less liabilities. Don't forget to exclude the senior preferred obligation from libilities as specified in the PSPA.