<<<<JNNE found AMS to be a losing proposition and sold it back to the original owner in January of 1999 as was stated in a press release. They took their loss...>>>>
You realize, of course, that you have just proven me to be right. I'm not arguing they had profits. I'm arguing they had revenues.
JNNE claims (according to you, let me note) that they were operating AMS from May of 1998 to January of 1999. They also claimed that AMS had generated a million dollars in revenue (not profits, but revenue) in the 12 months prior to May 1998. I'll assume Joe Naughton is a bright businessman and was able not to lose any business.
So in the six months that JNNE owned this business, they should have brought it at least $500,000 in revenues whether it was making money or not.
Instead of listing a total absence of revenue in the audited financials, this $500,000 should have showed up as 1998 revenues whether the company was making money on these revenues or not.
Your husband can surely tell you that if a company is doing things like distributing 2,000,000 magazines a year (as noted in their May '98 PR), along with "providing top-tier advertising and promotion for the PGA MERCEDES CHAMPIONSHIP" they are surely getting paid something for it.
Yet the financials say the company got nothing for it. And this makes sense to you? AMS operated for six months and never charged its clients a dime?
In June of 1998, JNNE also claimed that it received a check from Costco... why were those revenues not listed on the financials?
www4.techstocks.com
Lest anyone doubt that JNNE actually acquired AMS, and claimed it had business: writenews.com
I found this very interesting as well, from July 1998: "AMS is an established and growing Del Mar, CA based multi-media publisher, advertising agency and media buying concern with current annual revenues in excess of $1 Million. The purchase price of $597,000 will be paid out over three years. Jones Naughton projects AMS' annual revenues alone will reach $2 Million in 1999, $3.8 Million in 2000 and $6.1 Million in 2001."
www2.techstocks.com
From the same release, Pat Rost states: "By eliminating duplicative
tasks and consolidating related business functions, we will be able to increase profit margins in all of Jones Naughton's divisions."
So, in June/July of last year, JNNE stated:
1) AMS is bringing in lots of revenues.
2) AMS cost JNNE $597,000 over three years to purchase.
3) They received a royalty check from Costco.
4) Pat Rost states the AMS deal will "improve the profit margins" of JNNE divisions, implying that the company actually had profits, and certainly had revenues.
Compare this with the "revisionist history" financials issued recently for 1998:
1) AMS brought in zero revenues.
2) No mention of the nearly $600,000 charge for AMS, or any portion of it.
3) Costco check missing from statement of revenues.
4) Pat Rost talked about "improving profit margins" although the company had no revenues?
The SEC is going to have a field day with the 10-SB, should it ever be filed.
P.S. What January 1999 release? Funny, it's not available on the GONT website. How convenient. |
