I said ":Whatever is the case, the game is on! And BSD M is rapidly heading for, first, positive cash flow, then, profits! I think they have probably already achieved positive cash flow, and the very sizable markets, now “cracked”, should provide overall profits soon (as we speak?)."
Forget what I said about positive cash flow possible now. BSDM has evidently not been capitalizing any significant amount of their obviously expensive advertising and promotional activities for the MTX-180 or for the other products.
Page F-11 of the 2011 10K.
“Advertising and Promotion – Advertising and promotion costs, which are principally included in sales expenses, are expensed as incurred. Advertising and promotion expense was $275,393, $61,294 and $86,287 for the years ended August 31, 2011, 2010 and 2009, respectively.”
Note the large increase for FY 2011. And, there is likely another substantial to large increase in FY 2012 (ended 31 Aug 2012), because of the expenses incurred in establishing the FPU plan (unless the company has changed its policy re capitalizing advertising and promotion). Heretofore, these expenses were relatively minor, but not recently. Since the value of such is garnered over many future years, it would be more accurate to amortize them, but they have not been doing this and probably have not changed their policy. Their conservative policy (unrealistically conservative for the MTX-180 program) makes performance look worse now, better later. |
