Irish Jack,
I urge you to look at Panther's latest balance sheet. It's readily available on their web site.
In a normal company, current assets should roughly equal current liabilities. In accounting, "current" means that this money should be realized within 12 months. In Panther's case, current liabilities are 10 times current assets ($666,086 vs. $64,251). Not a pretty picture, you could not run your household finances like this. So where do they get the money? Let's find out.
If you look at stockholder's equity you will see that there was $13,551,340 in "additional paid-in capital" this is the money they received for the stock offering. Now, they have to account for this somehow so that the balance sheet "balances." So what do they do, they immediately subtract $10,471,482 and chalk it up to "deficit accumulated during the development stage." What does this mean? Your guess is as good as mine; most companies explain verbiage like this in the notes or additional statements. Panther does not. Probably for good reason. Some of this goes to salaries, equipment, etc. But on the balance sheet, equipment and property only account for $3,719,143. Where did the rest of it go? For the shareholders, they only list equity of $3,117,308 (they list "stockbroker's equity" but I'm willing to let this go as a typo). Again, where did the money go?
Are they crooks? Probably not, but I'm not a lawyer or a specialist in securities law. Does stuff like this happen all the time with penny stocks? I'm afraid the answer is YES! I'm sure Panther has a property and they may even be digging in the sand. But do you believe Gordo, Penny, et al. have your best interests in mind? I'd be suspicious considering their track record. Let's see you find some of Honest Abe's former shareholders and see if they think they got lied to and then ripped off.
LOL |
