Unfortunately someone at Domark gave this a little more thought than JB did. The following is from Domark's May 2009 10-K....your 4th reference.
loanranger Friday, April 06, 2012 3:27:30 PM
Re: jimmenknee post# 175540 Post # of 175551
Unfortunately someone at Domark gave this a little more thought than JB did. The following is from Domark's May 2009 10-K....your 4th reference.
"This agreement was terminated on August 15, 2008 and reassigned
on same date to Domark under a new agreement. At the time of reassignment, the
Company had not redeemed any credits for media advertising."
"In consideration of M4E's commitment of the Media Credit, the Company
shall transfer to M4E, within five business days of the Effective
Date, 2,640,000 restricted shares of Company's common stock
("Compensation Shares"), which are valued at $3.79 per share."
Both the 2,640,000 shares and the $3.79 per share price were apparently withdrawn from someone's posterior. On 8/15/08 a total of 9,600 DOMK shares traded in a range of $1.00 to $1.50. Shares traded for between $1.35 and $2.25 in the 6 months surrounding the agreement date.
However, that someone recognized that, in order to provide some justification for the recording of this "asset" at $10,000,000, it might help for the price per share when multiplied by the number of shares transferred to equal that amount. And indeed they do.
Now whether the $3.79 or the 2,640,000 exited the cave first is open to question, but at least there was some creativity involved. Multiplying $1 times 1,000,000 and getting $10,000,000, not so much.
siliconinvestor.com
jimmenknee Friday, April 06, 2012 2:49:11 PM
Re: Zardiw post# 175528 Post # of 175551
We don't know that the SEC said the Media Credits were "A-OK." JBI is asserting-- and via the wording they chose -- that the SEC had some non-documented discussions about the Media Credits with Domark/Sportsquest.
If one would bother to track the history of these Media Credits one could easily see why the SEC could have had some questions over their associated transactions (from Lextra to Sportsquest to Domark)...
... but the bottomline for accounting would have been based on Domark paying $10 million for them and accounting for their asset value at $10 million and not the $3.3 million most likely paid by Lextra for credits that were later "terminated" by Sportsquest. Domark started under a new agreement and paid $10 million (in shares).
When I originally mentioned the Sportquest $3.3 million payment, I had hoped the discussion would have continued and I assumed most people would track the history as opposed to just taking a desired posted number at face value merely because it supported a desired interpretation WRT accounting for $10 million worth of Media Credits.
References:
sec.gov
sec.gov
siliconinvestor.com
sec.gov
siliconinvestor.com |
