Replies to post #41362 on Pervasip Corp (PVSP)

[Arthur]

The company is no longer paying the CEO salary in cash:

At November 30, 2012 and 2011, total unpaid salary owed to the Company’s chief executive officer was $318,946 and $244,450, which has been converted into unsecured short-term loans bearing interest at 12%. Accrued interest on such loans was $51,233 and $19,840 as of November 30, 2012 and 2011 which is included in the other current liabilities.

also,

Additionally, the Company owes its chief executive officer $183,480 and $233,280 as of November 30, 2012 and 2011 for cash loans made directly to the Company. Accrued interest payable on such loans was $74,345 as of November 30, 2012 and $29,953 as of November 30, 2011 which is included in other current liabilities.

also,

During the third quarter of fiscal 2012, the Company’s chief executive officer converted $18,500 of outstanding debt into 1,500,000 shares of common stock.

The Company also owes its chief executive officer $104,571 and $109,222 for unreimbursed business expenses, which are included in the Company’s accounts payable balance as of November 30, 2012 and 2011.

At November 30, 2012, the Company owes $20,000 each to its chief executive officer and chief information officer for unissued common stock that was purchased by its chief executive officer and converted by its chief information officer from debt into equity during fiscal 2012.

So the situation is very confused. Instead of being paid in cash, instead of being paid in shares, the CEO converts his back-pay into "loans". When those loans are 1 year old, they can be floated as debentures; the proceeds are used to repay the CEO, with interest, and the the CEO use some of that money to buy PVSP shares at a higher than market price.

There is also a 3rd highly paid employee, The Consultant for $192K:

The Company paid fees to a software consulting firm (“Consultant”) of $192,000 in both fiscal 2012 and 2011. All such work performed by the Consultant is the property of the Company. An officer of the Company has performed work for the Consultant, including disbursement services, in which funds that were remitted by the Company to the Consultant were subsequently transferred to a company controlled by the officer to distribute such funds to appropriate vendors.

[Cooltabby]

its easy money so why would they stop?
Like Bosox said, rinse and repeat.