Replies to post #58728 on CyberKey Solutions fka CKYS

[easymoneyva]

Nice cool brew....I'll drink to that

[rdavis]

You brought up some good observations with the utilities, cell phone, etc.

as far as:

>Others have mentioned that it's odd that you would have 25 mil in sales and 19 mil in A/R but on an accrual statement, which this is, if you sell a box for $1000 and you get paid a $100 deposit, you book a $1000 sale and $900 accounts receivable.


We don't have a problem with receivables per se. The problem is that looking at both sets of statements it appears we have around 12 million that are over 180 days old. That may be a problem.

[roerules]

Coolbrew: Didn't you see anything wrong with sharelholders equity.

book value went from 12 mill to 28 mill in six months with only a 700k increase in net income? Of course the fact that no income tax was accrued is also absurd.

[roerules]

Coolbrew: sorry, I saw that you picked up on the retained earnings. Most of what is in the expenses are immaterial relative to cogs. Of course there is zero visibility into the what makes up COGS. The big number for me is the mysterious 12 million in retained earnings that appeared in december.

My guess is that jim sold about 800 million shares during the 4th quarter and rather than show the increase in book value as additional paid in capital labeled it retained earnings.

I can't imagine that these are innocent mistakes. Especially since JP hired a controller during the fourth quarter. However, I did think it odd during the small cap engine video interview with the controller that she appeared like a deer in the headlights. Also, her desk seemed totally clear of paper. You would think she would have plenty to keep herself busy getting the finances in order.