Hey Mary,
Essentially, I think Steve is cleaning up the Balance Sheet by declaring a large portion of the accounts receivable as uncollectible and writing them off along with the associated commissions. So the Accounts Receivable number on the 7/31/20 Balance Sheet of $350,000 is a net number. The non cash uncollected sales (Accounts Receivable) would have been $7,665,080 but Steve sees most of them as uncollectible and is putting $7,315,080 as a reserve for uncollectible debts, leaving $350,000. According to the notes, the $350,000 was collected between August 1st and the present so even that $350,000 is now cash. Companies do not collect 100% of their AR so this should have been done all along. I see it as a good sign that he is cleaning it up and only showing what he considers to be real assets and liabilities of the company. In doing so and recognizing that one-time $6.4 million loss, if we do land one or more of the insurance companies and start making profits, we will not have to pay taxes on a large amount of income.
Another positive note I see is that ONCI has not taken out any new convertible debt for over a year. The most recent was $10,000 on 8/6/19. All other debt since that time has been loans from Steve Berman totaling $260 thousand.
Additionally, the amounts due to Related Party (Steve Berman) continue to rise (page 20 of the quarterly report). Accrued but unpaid compensation increased $180,000 during the nine months or $20,000 per month. He's not paying himself a salary. He has loaned the company over $1.2 million to help pay the bills. Unreimbursed business expenses have increased over $200 thousand over the past nine months. Accrued but unpaid sales commissions decreased over $600 thousand because when he wrote down the Accounts Receivable he is no longer entitled to the sales commission. By cleaning up the balance sheet he is also reducing the amount the company owes him.
Another thing I find interesting is that Joe Canouse, at least as of 7/31/20 was holding 281,872,766 shares. He received 115,515,729 shares on February 3, 2020 converted at .0001 and another 166,357,037 shares converted at .00005 on July 17, 2020. Yes those are toxic conversions; however, it looks to me that he is holding for something bigger. He could have sold those shares and easily doubled his money. He could sell all those shares right now, with 900 million shares on the bid at .0001.
All in all I found the quarterly report to be a good sign of things to come. These are just my opinions based on what I read from the reports. GLTA...
Essentially, I think Steve is cleaning up the Balance Sheet by declaring a large portion of the accounts receivable as uncollectible and writing them off along with the associated commissions. So the Accounts Receivable number on the 7/31/20 Balance Sheet of $350,000 is a net number. The non cash uncollected sales (Accounts Receivable) would have been $7,665,080 but Steve sees most of them as uncollectible and is putting $7,315,080 as a reserve for uncollectible debts, leaving $350,000. According to the notes, the $350,000 was collected between August 1st and the present so even that $350,000 is now cash. Companies do not collect 100% of their AR so this should have been done all along. I see it as a good sign that he is cleaning it up and only showing what he considers to be real assets and liabilities of the company. In doing so and recognizing that one-time $6.4 million loss, if we do land one or more of the insurance companies and start making profits, we will not have to pay taxes on a large amount of income.
Another positive note I see is that ONCI has not taken out any new convertible debt for over a year. The most recent was $10,000 on 8/6/19. All other debt since that time has been loans from Steve Berman totaling $260 thousand.
Additionally, the amounts due to Related Party (Steve Berman) continue to rise (page 20 of the quarterly report). Accrued but unpaid compensation increased $180,000 during the nine months or $20,000 per month. He's not paying himself a salary. He has loaned the company over $1.2 million to help pay the bills. Unreimbursed business expenses have increased over $200 thousand over the past nine months. Accrued but unpaid sales commissions decreased over $600 thousand because when he wrote down the Accounts Receivable he is no longer entitled to the sales commission. By cleaning up the balance sheet he is also reducing the amount the company owes him.
Another thing I find interesting is that Joe Canouse, at least as of 7/31/20 was holding 281,872,766 shares. He received 115,515,729 shares on February 3, 2020 converted at .0001 and another 166,357,037 shares converted at .00005 on July 17, 2020. Yes those are toxic conversions; however, it looks to me that he is holding for something bigger. He could have sold those shares and easily doubled his money. He could sell all those shares right now, with 900 million shares on the bid at .0001.
All in all I found the quarterly report to be a good sign of things to come. These are just my opinions based on what I read from the reports. GLTA...
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