The numbers are great IF they were audited id say great to.
The act of the audit might or might not be meaningful, depending on how this plays out with the SEC. The numbers themselves are not great, unless Reid can demonstrate there's a huge untapped market in selling rpac products through his distributorship.
If one wants to start up a business by selling Acme Widgets, then it's relatively easy to claim massive increases in revenue, when starting from near $0. Maintaining that rate of increase throughout the 2nd year is more difficult.
So far Reid has told us sales of rpac products went from near $0 to $9M in the first year after lining up the distributorship. He has also told us that net income for Q2 through Q4 have roughly leveled off. He has already hit a wall. Since sales were still gearing up during Q1 last year, he'll be able to claim huge gains YOY for Q1, but unless it jumps way above the last 3 quarters, net income will continue to be less than $200K, or flat.
Before the SEC stepped in, this was a good set up for Reid. By the unaudited numbers he issued recently: He gets all net income into his own pocket for the next 5 quarters up to $1M, along with his $200K/yr salary, approx $50K/Q in royalties, and it doesn't matter if sales are flat or not increasing. For dessert he could jingle a few PRs on the side, and sell potentially 625M more shares into the float. It lasts for as long as there's a market for the old EAS technology.
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