Replies to post #80381 on Bravada International Ltd (BRAV)

[Erik Caldwell]

well as those numbers are unverified, I would guess that is just another game Danny is playing to keep the money flowing. He could prove it, any bets on if he will? Nevermind, don't worry about it, did you hear it's national leggings month?!?

[Y U Axing Me]

The sales taxes would not be on the P&L, it would be on the Balance Sheet. The funny thing is that the same amount has been on the books (liabilities) since Sep 2011, which could(nothing definite) mean that the taxes weren't paid.

That's one of the biggest problems small business have....collecting sales taxes, then spending that money. Then, when it comes time to pay the taxes...money's gone. I hope that's not the case with Bravada, but the balance sheet says that they haven't paid them yet. Good thing (for the shareholders) that the financials are such bad shapes, that maybe it was just missed...That fact that Bravada has been involved in many lawsuits makes me a bit leary about them playing by the rules...but you can't be sure, can you? Unfortunately, the time that you find out that they haven't paid the sales taxes is when it's a little too late...However, they can always sell more shares to get themselves out of hot water.

Sales taxes are a big deal. Did you know that officers of the company are personally liable to the state for the collection of sales taxes? It can get quite ugly.

Of course, there's no way of knowing for sure what's happening. Too bad the financials were prepared in an unprofessional and disgraceful manner. I wouldn't put my name on that waste of paper.

Good luck :-)