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smokyceo

10/29/11 3:03 PM

#8009 RE: integral #8008

Don't know how long you've been out of the accounting loop, but feel free to contact our SEC auditors on this or any other issue. You might learn something new. Certainly can't see anything that's not direct clarity and truthful from the response you refer to?

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#1: Stock based compensation under GAPP rules must be shown as expense and during the second quarter to get needed cash with so low a price and little liquidity in daily volume, small investors buying restricted shares from the company were given discounts and the difference is required to be logged as expense. Had SMKY been forced to get this money from typical funds or angel invesors, there would be 500 million shares of float outstanding.