How much did this company earn in Q1? It wasn't even a penny a share as reported by the company, more like a small loss, or at best, breakeven.
They actually had earnings of $118,000, but the only reason they could report even this small amount is because they depreciate their goodwill over 40 years, which is legal, but a deception. Most goodwill is amortized over a period of 10 to 20 years. They also took a tax recovery of $188,000 to increase their earnings to $306,000, more earnings from accounting than actual earnings from operations. They then divided this $306,000 into the 45,793,000 shares outstanding they have to arrive at $0.01. In fact, the actual earnings per share should have been reported as $0.0067 per share and not $0.01.
So they actually earned 7/10ths of a penny and even that is an illusion, but this company knows how to create illusions. |
