Re: GNNX. I dont understand your and Gary's discussion of the 1.8M ????
It has nothing to do with the INCOME STATEMENT.
It is on the BALANCE SHEET.
The INCOME STATEMENT is where they compare revenues and expenses.. an accountant from any country would know that...so I dont know why you are discussing removing the 1.8M from revenue?? It is NOT claimed as revenue by GNNX.
It is listed as an ASSET on the balance sheet which it is... it is not part of the revenue. It says clearly in Part 1. Read below.. they will claim 100,000 in revenue per month from it for the first 6 months and then 200,000/month for the following 24 months. They are not claiming the $1.8M in 1997 financials as REVENUE.. its simply an asset on the balance sheet. So I dont know what the discussion was about really earlier today.
One of the assets received is a contract for the sale of certain
films. The terms of the contract call for monthly payments beginning March 1, 1998 in the amount of $100,000 per month for six months and $200,000 per month for the next 24 months totaling $3,000,000. Beginning October 1, 1999 a licensing fee of $100,000 will be paid to the Company monthly, until September 1, 2002, total of contract being $5,400,000. Analysis of the available records of Genesis Group indicates that the cost of the 380 films purchased was $2,184,625. This transaction will be treated as an installment sale, and will be reported for taxation on the same basis |
