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Biotech / Medical : Medical Industries Of America, MIOA
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To: Mr. Miller who wrote (206)6/18/1997 11:50:00 AM
From: Brad   of 570
 
Mr Miller,

I agree, TopCat could be more understanding, restrained and certainly more tactful in his criticism, but I believe he is correct in his interpretation of the amount in question.

The $18 million "Accumulated deficit" is best described as a "loss carry forward." It is actually good for investors coming into this stock now because it means the company can earn $18 million in profit before they have to start paying income tax.

Losses never seem to be helpful while they are occurring (in this case over previous years). But "loss carry forward" is welcome in profitable times because the profits are essentially not taxed until the loss carry forward has been offset. That is why the difference between the "beginning of year" and the "end of 1st quarter" is the difference reflected by profits or "net income." I have copied the part of the 10QSB that pertains to this and shown it below.



Income (loss) from operations ........... 411,499

Loss from discontinued operations .... (84,418)

Net income (loss) ............................. 327,081

Accumulated deficit-beginning of
year .......................................... (19,176,789)

Accumulated deficit-end of 1st
quarter ...................................... (18,849,708)

--------------------------------------------------------

Anyone wishing to review the 10QSB can simply "click" on the site:

sec.gov

Hope this helps.

Best wishes,
Brad
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