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eztradin

07/28/10 3:37 PM

#5435 RE: aries4747 #5433

The derivative expense is associated with CoroWare's convertible debentures. The derivative liability increases with the increase in CoroWare's stock price, because the underlying embedded conversion feature is indexed to CoroWare's stock. As the derivative liability increases, the derivative expense increases. The interest expense is primarily associated with the amortization of the discount also associated with our convertible debentures.

Another reason to keep the price low. The S-8 is still not done yet, either.

I think the company will go belly up or need to restructure if their sales don't ramp up soon.

JMHO