I forgot the link to this one. Mike gives the SEC a crash course in corporate accounting (or "collision-course", whichever you prefer):
Q. Were there any actual profits at or about July 20th, 1998?
A. Not if you take into account what, the accountants did with the stock something. They did like a 7 million share or dollar loss or $14 million loss because of Dr. Loricchio stock being converted to preferred or something like that. So I don’t understand what they did there.
Q. Well, it seems to be a rather easy question.
A. Yeah.
Q. Were your revenues bigger than your cost at this point?
A. Yes, because at this point the sweetener sales and the sales, there was more money
coming in than going out.
Q. So you’re saying the company was making a profit on July 2Oth, 1998?
A. Right, because we were — yeah, the bank account was going higher than lower.
BY MR. MACPHAIL:
Q. Do you have any understanding of the distinction between cash flow and profit?
A. The money that goes out—if the money comes in more than it’s going out, that’s the
profit.
Q. Okay. I guess, are you familiar with the term cash flow?
A. Cash flow.
Q. It’s an accounting term.
A. Okay, cash flow is the money that comes in every day.
Q. Are you telling me or are you asking me?
A. Asking you.
Q. Well, I get to ask the questions.
So you don’t -- you don’t really know what cash flow means and you really know the
distinction between profit and cash That’s all I’m trying to establish.
A. Oh, oh.
Q. Is that right?
A. Yeah, that’s right, if that’s what you said. |
