Replies to post #99393 on Aero Performance Products Inc (fka AERP)

[GamblerNC]

IMO - that is the value of any of the patents..they have to be included as value added to the company(aero).

[GotOptions?]

Unless your a CPA I would worry less about the bottom line items leading to net income numbers and more about top line growth numbers like a 68% gross profit margin, allowing HUGE room for growth in our sales numbers and capital given to improve the bottom line. Net income can be achieved by increasing sales by multiples with this format.

They will cover the costs along the way now I am confident.

Its a very efficient topline set up currently. Just gotta sell sell sell.

[looking_for_gold]

Igster, I don't own FCCN currently, but follow the board and will offer you this explanation.. The Goodwill clause will help you as an investor by providing more relevant financial information, but it also gives FCCN a way to manipulate reality.

Balance sheets are bloated with goodwill that result from acquisitions i.e., Aero.. You find this with companies that overpaid for assets. Bottom line it distorts not only the finacial analysis of FCCN, but also what investors should pay for the stock.

Got give the CEO points for creativity... lfg

[DMOST]

For INVESTOPIDIA.COM



GOODWILL



An account that can be found in the assets portion of a company's balance sheet. Goodwill can often arise when one company is purchased by another company. In an acquisition, the amount paid for the company over book value usually accounts for the target firm's intangible assets.

Goodwill is seen as an intangible asset on the balance sheet because it is not a physical asset such as buildings and equipment. Goodwill typically reflects the value of intangible assets such as a strong brand name, good customer relations, good employee relations and any patents or proprietary technology.

AND THEN THERE IS


Negative Goodwill

A gain occurring when the price paid for an acquisition is less than the fair value of its net assets.

Depending on the circumstances, this is listed as a separate line item and usually recognized as income. Negative goodwill can sometimes occur after a distressed sale. Because this type of sale almost always happens under unfavorable conditions, the seller generally receives a worse price. When the price received is less than the actual value of its net assets you have negative goodwill