Replies to post #232321 on On4 Communications Inc (ONCI)

[On2_addict]

WRONG...The entire Gross Margin..is..A/R...It also has not gone down for 27 months, only up by the amount of the Gross margin.

Show any accountant the latest income statements and they will tell you to run away fast.

A/R paid in 60 days is long, 27 months means this is a scam or everything is on consignment and NOT selling.

HUGE RED FLAG.

[On2_addict]

Think of it like this as an example...red flags

ONCI in Q1 does $1000 in sales with a cost of sales of $200, and an Accounts receivable of $800.

In Q2 they again do $1000 in sales with a cost of sales of $200, but Accounts receivable is now $1600

In Q3 again the same $1000, $200 cost of sales, but Accounts Receivable has grown to $2400

This is the same pattern that ONCI is showing except for the number varying more from Quarter to quarter.

The accounts receivable grows by the gross margin amount, BUT DOES NOT DECREASE as it would if anybody was paying.

NOBODY IS PAYING that is the problem.

ONCI has sold 400 million shares over Q1 and Q2. That is they way they are making ends meet.