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Yikes! discipline on RB is insinuating that the $40 million financing is going to be used for this: <<At September 30, 1999, the Company had negative shareholders' equity of $2,865,935, an accumulated deficit of $38,086,230, and a working capital deficit of $3,504,036. The Company has frequently failed to make timely payments to its trade and ...>> discipline, hold on here, boy! "Accumulated deficit" gives the balance sheet reader insight into past performance. To be specific, over the years TSIG has spent a lot more money than it's taken in. This large negative number is bad news undoubtedly and explains a $.40 stock price. However, the "accumulated deficit" is not an account payable, it's not a note that must be paid off; that is, the company does not have to raise cash to erase the "accumulated deficit". As the company begins to make money the deficit will begin to decrease. After a few years pass, the number will become positive and will represent the cumulative performance of the company. The $40 million financing is absolutely NOT going to the accumulated deficit. |
