Steve, wild financial question. Since JC contract

Steve, wild financial question.

Since JC contractually owes you the $6.8M, is it possible to transfer part of that obligation to the holder(s) of the convertibles? The holder would then be responsible for the amount in question and you could wipe the converts off the books. This would also give certain posters angina (gasp, gulp!) and possibly remove blocks of shares that the convert holders could use to short the stock.

Another related question. If the $6.8M were receivables, as you originally planned, that would have made the Q look stunning. As I understand it, the accountants took the conservative approach and categorized it as a contra account. However, they didn't use the $6.8M figure. How are they accounting for JC's obligation?

Since the issue of revenues keeps coming up, this may be the source of the confusion. Any further explanation welcome.

Net income/(loss) from operations (1,570,200)
Net income/(loss) from discontinued operations 1,583,392

The Q was the hardest one I have ever worked on. The GAAP accounting rules required us to do the all these different tests and line items that anyone without an account degree could never get though. We originally plan to remove Punch and put the 6.8 million value of the stock as a receivable to JC and his company. We filed it wih the auditor that way then they came back a brought on addition support help to restructure the Q to meet all the GAAP rules.