Replies to post #5640 on Jiangbo Pharmaceuticals, Inc.(fka JGBO)

[996]

That is a part of the key to our investment: bad, good, better or best?!

It would be nice if they were putting money aside to repay these financing deals. But then we would still have to face the warrants...

[jjohnson]

I believe the answer to the discrepancy between diluted and basic EPS can be found on page 16. It looks to me like they have to write down the convertible debt from the PIPEs with Pope as if they had to repay the loan incrementally. It's for honesty's sake and probably part of SOX compliance. SO this quarter they had to write down $4,323,418.00 and add in the 629,481 shares that could be added to the float if Pope exercised their warrants.

Diluted earning per share

2009

2008

For the three months ended March 31, 2009 and 2008

Net income for basic earnings per share
$ 8,855,848 $ 4,474,833
Add: Interest expense
75,000 75,000
Add: Note discount amortization
219,362 88,165
Subtract: Loan issuance cost
(188,689 ) (306,825 )
Subtract: Debt discount if converted
(4,134,724 ) (4,654,608 )
Net income (loss) for diluted EPS
4,826,797 (323,435 )

Weighted average shares used in basic computation
10,277,762 9,740,128
Diluted effect of $5 million convertible debt, stock options and warrants
629,481 -
Weighted average shares used in diluted computation
10,907,243 9,740,128

Earnings per share-Diluted
$ 0.44 0.46