Replies to post #57672 on Grupo Resilient International Inc (GRUI)

[stoxbox]

Thanks Stratey, what is P&L?

[emilson]

Pleas I've been here for 2 years. I know what I have I know the trouble we've had. I know who is running the company now. And I don't need any advice from a new commer like you.

[whocares19067]

Its nice to see someone objective!!!!

[WardOffMonkey]

Stratey, they've still got some date issues on the Statement of Stockholders' Equity too. I agree with you on all counts, but my perception of where that puts us is a little different. The $3 million prior period adjustment was done when the 3rd quarter financials were released, and while the initial posting of revenues based on orders and not on delivered product was egregious and most probably intentional on Moody's part, Wicks' cleaning up that mess is a positive sign. These corrections only confirmed what we knew from comparing the revenues and retained deficit in the audited financials attached to the SB-2 filed in December 2005 with the unaudited financials that were released publicly.

As for the Negative Working Capital, that's been an ongoing issue as it is with many if not most development stage companies. The issue of the capitalized development costs has been addressed to some extent before as to what comprised that number. On the audited financials in the SB-2 for 12/31/04 there was $28,600 in Capitalized Software on the Balance Sheet. That number had risen to $995,752 with the unaudited 9/30/05 financials (also included in the SB-2) where it stayed through the 12/31/06 financials. It then rose to $1,877,040 on the 3/31/06 and 6/30/06 financials statements, the last one published under Moody's watch. It was reduced to $1,029,167 on the 9/30/06 financials when the restatement was done, and categorized as CT Development as opposed to Capitalized Software. I think this probably reflects more accurately the costs that should be capitalized, as well as the character of the costs since ActSoft provides the tracking software and the OS is Linux so only specially written mods or add-ons and plug-ins for those would probably capitalizable. I don't know who is actually handling the financial side of things now, so I do not know their qualifications or understanding of current GAAP and SEC reporting requirements.

[Jimmy Quick]

Ok, here is my opinions of the financials.
The $3M adjustment is old news from 3rd quarter as Ward has stated, and was actually the most impressive thing that was done to show Fred's sincerity with this company. It was fraud, but by Frank Moody and a good reason for Frank to be forced out.

Yes, we have debt, yes debt is not good, but debt usually comes with start up companies. Almost all of us went into debt when we bought our first car or house, does that mean that we can't afford it or it was a bad decision. NO!! Would we like to see no debt. YES!! With a car 5 years and we are debt free, should a business be that much different.

Capitalized costs come with the development of new products and advancements to current projects until they are ready for production. Software costs are about the only thing that is allowed to be capitalized, so I don't see a problem here, as long as everything involved with the development of the CT is software costs. We are still working on several versions of the CyberTracker. GSM, solar powered unit, etc. But also notice that these only went up slightly $10K from 3rd quarter. Don't see an issue here. In addition to that, the Captilized amount also decreased by $800K from 2nd to 3rd quarter financials. Also changed by Fred, once again should we really be going against what Fred has been trying to do here.

The thing I noticed about the financial statements that I didn't like is the fact that Accrued Payroll Taxes, Payroll Tax Liability, and Sales Tax Liability and another category amount did not change at all from prior quarter. This doesn't seem reasonable to me. This tells me that the right amount of attention was not given to these financials and leads to the potential of them be inaccurate with more than just the exception of not being audited.

I still have faith here.

[WayneC777]

Ya I hear what your saying Stratey, But ...

I am looking at an overall picture. I am seeing a company JUST NOW starting over. At this point we are looking normal, from a new company posture. That crap frankand BA put us through is Devistating. So as an past that is set on the shelf, I can see how we can come backup. As long as Mike S. and Frank are as real as we are seeing ... we will be ok. The reason for that is that we already have the Promotions department setin place. Soif we sit here for another Q, that will give me time to fill my boots some more.
But I am hearing you though.