Wednesday, October 2, 2013

Tubby accounting for DumbTards - VFX.v

Our burning, incredulous arse is being subjected to more outrageous Tubberian abuse with the release of quarterly (unaudited) VFX.v numbers.

"Revenue growth of 1,577% from February 2013 to August 2013"
For the 3 months ended July we have a whopper revenue number of $ 8,749,351, butt hold that keggar for a second, the cost of sales was $ 8,486,146 resulting, naturally, in another loss of $ 333,522.

This multi-million dollar monthly money spinner is showing cash of $ 400k with receivables of $ 3.5m, all of which are greater than 30 days past due. Liabilities? An insignificant $ 4.1m, don't you worry your little head.
There is no allegation that there is no money changing hands with these multi-millions in "sales" ... it's a very obvious fact that cannot be disputed.

"The Corporation must also maintain a ratio of total liabilities to tangible net worth (defined as net assets, excluding intangible assets) of not more than 2.5:1. The covenants are assessed by the bank at the end of each fiscal year. At July 31, 2013, the Corporation is in violation with both covenants and as such, the bank has the right to demand repayment. At September 27, 2013, the bank has not demanded repayment."

That revolving debt is $ 900k + and is the only apparent source of funding for this damn joke.
One wonders who exactly is dense enough to be swallowing this utter and completely offensive horsechit.
From the notes ... "Approximately 87% of the Corporation's monthly service revenue and product sales during the period ended July 31, 2013 (2012 - 87%) were generated by 1 (2012 - 3) customer. Accounts receivable at July 31, 2013 includes $2,206,817 (2012 - $335,192) owing from this customer. This amount was fully collected subsequent to July 31, 2013."

There is no evidence whatsoever of anything being collected from an unknown party so far, let alone the kind of money being spewed about.