Replies to post #4414 on Telvue Corp. (fka TEVE)

[phrantic]

Jack, here's a link to Epic's website that has an e-book on reading financial reports. I've read it, it's not too long, and is very helpful. Just scroll down a bit when the link opens and you'll see it.

http://investorshub.advfn.com/boards/board.aspx?board_id=14660

[phrantic]

10-Q Encapsulation:

1. Receivables are expanding. Not a major concern at this point, but merits keeping an eye on.
2. Assets are beginning to show an increase.
3. Revenue is expanding. (Sales & Service)
4. Net loss is expanding and merits a close eye.
5. Liabilities exceed assets by approximately 23.7M. This is a major concern.
6. Dilution has been minimal.
7. US economic health and growth is key to growing the company.
8. Gerry Lenfest is the company, the hearbeat of Telvue. His every move relative to the company requires diligent observation. Telvue will live or die depending on his mindset. One thing that caught my eye which amplifies the foregoing statement is contained in bold type below:

"As shown in the accompanying condensed financial statements, the Company incurred a net loss of $1,622,378 during the six months ended June 30, 2011, and as of that date, the Company’s total liabilities exceeded its total assets by $23,719,945. Those factors, as well as the Company’s reliance on financing from its majority stockholder, H.F. (Gerry) Lenfest (as discussed in Note 5), raise substantial doubt about the Company’s ability to continue as a going concern. Management of the Company secured an additional line of credit of $1,500,000 on December 13, 2010 and has modified its business plan to focus on equipment sales to the cable, telephone company (“Telco”) and professional broadcast markets. Funding TelVue’s future capital requirements will depend on numerous factors including, but not limited to, TelVue receiving continued financial support from Mr. Lenfest, which he has not committed to provide at this time, or seeking other alternatives. While management is working toward mitigating the adverse conditions and events which raise doubt about the validity of the going concern assumption used in preparing the accompanying financial statements, there can be no assurance that management will be successful. The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern."