One other thing I forgot to post. Loans to Officer: "The loan payable to officers for fiscal 1996 and 1995 includes $903,000 and $1,702,200, respectively, is owed to the CEO a Ten percent (10%) shareholder of the Company for consulting services provided throughout the fiscal years ended February 29, 1996 and February 28, 1995. Shares were issued to the officer in 1996 and the debt for $903,000 was cancelled".
So, Huttoe got more shares at the end of the year, when it was reported he had 3.4 million. The 10-K (2/29/96) shows a Loans Payable-Officer amount of $1,702,200. On the unaudited 5/31/96 10-Q there is no such category, although there is Notes Payable of $3,050,700. Nice job to the auditor who couldn't even keep the categories straight. What a pinhead! To the best of what I can tell, we have two possible scenarios. First, this Loans Payable-Officer was grouped together with Notes Payable on the 5/31/96 10-Q. Nice little coverup if that's the case. The other scenario is that the $1.7 million Loans Payable-Officer was paid off between 2/29/96 and 5/31/96. If so, I would guess the CEO received that money in shares, wouldn't you? And now what does this $3.05 million Notes Payable represent. Well, hopefully this is all payment to Huttoe, because if it is, I think you're going to see it go away next time you see the 10-K reissued.
SLEAZY, SLEAZY, SLEAZY |
