I suspect the companies that SIRC are buying are ones with strong positive gross margins. When I look at the filings SIRC made to the OTC market place I see that SIRC has strong positive gross margins that are rapidly rising along with the rapidly rising revenues. [The financials of the purchased companies become incorporated into the financials of SIRC.] I suspect that when SIRC buys companies it does so with shares of SIRC stock instead with cash, so as not to hurt the cash flow and the cash balance.