"Maybe the $108,500 deferred financing expense that shows up as an "asset" is money paid between 7/31/10 and 7/31/11 to Super Rad Corp towards the asset purchase agreement.
When the latest draft of the agreement was published on July 13, 2011 it did suggest that $105,000 had been paid to Super Rad Corp up to that point:"
It would be proper to account for the $105,000 as an asset, if indeed that's what the $108,500 refers to and I suspect that it does. If I remember correctly the final payment is due on April Fools Day of 2012, which I believe is the date on which this thing would actually be consummated if all the terms are met.
Any payment made based on this term would also be considered an asset until the closing:
"In addition, by not later than August 15, 2011, the Parties shall provide each other with a detailed accounting of all funds paid or loaned by FBCH to SRC in connection with the contemplated asset purchase. Pursuant to the results of this accounting, FBCH shall pay the outstanding balance of the One and One Half Million Dollars ($1,500,000) (“SRI Working Capital”), as set forth in the Parties’ Amended Asset Purchase Agreement and Amended Stock Transfer Agreement, to SRC and/or SRI, or to third-parties on behalf of SRC and/or SRI, by not later than December 31, 2011."
Unfortunately the company has failed to grace us with ALL the agreements and amendments which would allow us to put all the pieces together. I don't remember any statement to the effect that all of the payments due have been made, either....he could've slipped that in there (I don't think that the SEC has length restrictions on the 10-K). All we really learned about the Super Rad deal from this 10-K is that FBC Holding didn't own the assets of Super Rad Whatever (I forgot) as of 7/31/11. And FBCD had no revenues or assets of its own, contrary to popular opinion.
We also learned that as of a week ago shareholders valued the company at around $1,350,000, in spite of...or in view of......the above.
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