Replies to post #15221 on Mensa Mining Corp (fka EQBM)

[Zorro]

Never said it was a negative. Only that it seemed to be excessive as admin fees, which is what the co. called it, and that would seem to be a red flag for an auditor for such a small co. w/ no revenue. Whether or not they are legit expenses only the co. and their acct. know.

[EdF]

WTL, that makes no sense, if you look at the filing (albeit, it is very limited and not typical among standard GAAP filings), EQBM raised $3,483,000 from the sale of stock. Now normally, you will have a column for the period of the filing and a cumulative column. But from what you said, this figure may be a cumulative amount. So if you subtract that amount ($3.43M) from the prior period, EQBM is left with $2,084,085 in raised funds for this one year period. However, a corresponding amount does not show up under assets. In other words, it was not used by the company to put away as cash, to purchase property, or to purchase non-tangible assets. Where did this money go? It is crystal clear that if you compare the Cash Flow statement with the Statement of Loss, the 'hard' cash was used to pay for actual Administration Expenses. And if you follow along in the Cash Flow statement, after paying off Operating activities and Investing activities, EQBM has $9k in cash left over.

For him to say this to you, "The loss that is showing is Non-Cash flow loss meaning it does not need to be paid back according to him, is not a real loss money wise, and is for write-off purposes. Many term this as goodwill type of losses and that is the word he also used for it. He said they have full intentions of turning profits in this fiscal calendar and these losses will be used as write-offs against those future expected profits" is just plain wrong. The cash from the sale of stock was used for something under the section Administration Expenses. And whatever it was used for, it did not become an asset of the company. If it was used for cash to be used in an acquisition, it must be listed on the financial statement. Most likely, the money was used for G&A expenses, ie. travel, salaries, rent, utilities, supplies, etc. I can't see how he can say it was used for anything else????

Just my two cents. I too am not a CPA but did major in Finance...and I've spent enough time reading over numerous otcbb filings to have a slight foggy idea.

Lastly, I wonder how many shares were sold on the open market to make up that cash amount? Whatever the amount, they are now part of the float.