It looks like SRCM has been caught trying to dress up their books and report a better cash burn rate and a better working capital position by failing to pay $2,495,913.00 of their bills till after the Q ended...
Check the facts and figures from this post on Yhoo...
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Cabeza_de_vaca
Wow,
Gret find here:
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2.If you look at the income statement and back out the goodwill amortization, it would imply a 4.5 million burn rate. Source said on the call that they burned only 3 million dollars. How is this possible?
The answer seems to be in their payables. Examine the cash flow statement. In June, their payables were $683 dollars. In this quarter, they were $2,495,913. Last year in the same time period they were $39,321 dollars. Essentially, they stopped paying their bills. Glad I'm not their landlord.
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Yes indeed, it looks like SRCM failed to pay their bills Q3 to the tune of $2,495,913.00 in the line item "Trade Accountss payable and accrued liabilities"
If you go to the June 30 1998 Q, (Consolidated Statement of Cash Flows, page 6), you see that "Trade accounts payable and accrued liabilities" was $683.00. Now in the September Q (again from Consolidated Statement of Cash Flows, page 6), the "Trade accounts payable and accrued liabilities" is $2,495,913.00...
Folks that is a $2,495,230.00 increase.... WOW!!!
It looks like SRCM didn't pay their bills this Q so their cash burn rate and operating cash position would not look so bad!!!!!!!!!!
BAAAHAAAAHAAAAAAAAAA
Looks like SRCM is caught trying to "dress up the books" while they run out of money WAY faster than they claim they are...
Heck that sounds almost like another cause for a class action suit considering their press release and statements spewing how great their "reduced" burn rate was!!!
Hmmm
Gotta go, need to talk to some of my lawyer friends...
All Comments IMO
Cheers Steve |
