Financial statement review: First of all they
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Posted On: 09/16/2019 2:34:57 PM
Financial statement review:
First of all they were on time and maybe even earlier than most expected.
Look at the last page of the July 31, 2019 financial statements, page 20 of 20, which compares the amounts due to Related Party (Steve Berman) for the first 9 months of this fiscal year.
Accrued but Unpaid Compensation - the difference is $180,000 or $20,000 per 9 month, meaning he has not paid himself one dime in salary. It shows up as a company expense on the Income Statement but nothing went out in cash to the CEO. If the company does well he will get paid down the road but during this growth stage, he is leaving it in the company to pay the bills.
Unreimbursed Business Expenses paid by the CEO has increased $300,300 during this fiscal year so he is paying for a lot of the company expenses out of his own wallet.
Accrued but unpaid sales commissions increased $540,461 during the 9 months. If you divide that number by 12.5%, you get $4,323,684, which just so happens to be the total sales for the first 9 months. Once again, he has not paid himself anything in commission. It is a debt of the company to be paid in the future when the company is in a position to pay it back.
5% loans made to the company increased $237,573 (including interest) during the 9 months which included $61,700 since April 30.
Not only is he not paying himself a salary or commissions but he has used over $300k of his own money for business expenses and has loaned the company an additional $237k.
Accounts Receivable 10/31/18 was $4,851,862 plus 9 months sales of $4,323,684 = $9,175,546. This represents the money owed the company if they did not collect any cash for their sales. Now subtract the A/R on 7/31/19 of $7,163,056 and you get the amount collected during the first 9 months, $2,012,490. People are buying the product and the company is making money.
Good luck
First of all they were on time and maybe even earlier than most expected.
Look at the last page of the July 31, 2019 financial statements, page 20 of 20, which compares the amounts due to Related Party (Steve Berman) for the first 9 months of this fiscal year.
Accrued but Unpaid Compensation - the difference is $180,000 or $20,000 per 9 month, meaning he has not paid himself one dime in salary. It shows up as a company expense on the Income Statement but nothing went out in cash to the CEO. If the company does well he will get paid down the road but during this growth stage, he is leaving it in the company to pay the bills.
Unreimbursed Business Expenses paid by the CEO has increased $300,300 during this fiscal year so he is paying for a lot of the company expenses out of his own wallet.
Accrued but unpaid sales commissions increased $540,461 during the 9 months. If you divide that number by 12.5%, you get $4,323,684, which just so happens to be the total sales for the first 9 months. Once again, he has not paid himself anything in commission. It is a debt of the company to be paid in the future when the company is in a position to pay it back.
5% loans made to the company increased $237,573 (including interest) during the 9 months which included $61,700 since April 30.
Not only is he not paying himself a salary or commissions but he has used over $300k of his own money for business expenses and has loaned the company an additional $237k.
Accounts Receivable 10/31/18 was $4,851,862 plus 9 months sales of $4,323,684 = $9,175,546. This represents the money owed the company if they did not collect any cash for their sales. Now subtract the A/R on 7/31/19 of $7,163,056 and you get the amount collected during the first 9 months, $2,012,490. People are buying the product and the company is making money.
Good luck
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