Peyote smoker,
I know sales are poor. It's not a secret. And it doesn't show "a lot of courage" to tell the truth in SEC filings, it is merely following the rules. The filings are about as vague as you can make them. No revenue/expense breakdowns as to how the kiosks, SGOL and Auctionomics are each doing.
As to income... could you point out where in this release they said it was unearned? jnne.com
"Our advertising income for the Internet Kiosk business has already passed the $100,000 mark..."
Is it dishonest to claim you brought in revenues when you did not? I think so.
<<<Does Sears, JCPenny, and Amazon ZSHOPS own all the merchandise they sell>>>
What are Sears and JCPenney selling that they don't own? I'm sure you could fill me in. At least you understand that since GONT does not own the merchandise counted in the "gross sales", it should quit claiming it as revenue.
Amazon is not doing it this way. Amazon explains the calculation of revenues from Zshops in their 11/15 10-Q: "Net sales also include commissions from auctions and zShops transactions, which includes placement fees, sales commissions and fees from payment service transactions."
Amazon doesn't claim revenues from everything sold on its site as revenue, unlike GONT in its S-8. Amazon only claims the commissions and other fees made on them, the rest of the money goes to the people who actually own and sell the items. Amazon, like GONT, does not keep most of the money generated by its site.
Ask your accountant if claiming everything sold on the site as "revenues" follows "Accounting 101" principles. EBAY would be very interested, they'd love to be able to do that.
ShopGoOnline might be a good business practice if GONT made any money off it, or had any capital to keep it going, but GONT's auditors disagree on that last point. The reference to the auditors' "going concern" warning, as explained in the S-8:
"OUR AUDITORS HAVE ADVISED THAT WE HAVE TO OBTAIN ADDITIONAL CAPITAL TO CONTINUE IN BUSINESS. Our auditors in their report included in this prospectus have expressed doubt about our ability to continue as a going company. That risk is primarily dependent on our ability to raise sufficient money to undertake our new business plan. If we do not continue as a business, our stock would be worth substantially less."
I suppose you will claim the auditors are lying now. |
