They may have faced the same kind of situation as last year when they had to write down certain assets being shipped from overseas to here.
Property and Equipment assets (less accumulated depreciation) went from $6,059,926 in June '98 to $4,900,826 in Sept '98, a $1.1 million drop. Depreciation makes up about $500,000 of the $1.1 million drop, so they must have had to write off or dispose of another $600,000 in assets (this is while the company is growing?).
Year-end (9 months) depreciation was $491,610, thru 6 months in June it was $143,506. That tells me that in the last quarter the depreciation expense was almost $350,000 (on less assets?). That's why I was speculating that the company was not correctly depreciating property in the first two quarters.
Personally, I'd think about getting a CFO with Big-6 Accounting Firm credentials. The guy they have now obviously isn't cutting the mustard.
The good news is that the slate is now clean, and maybe we can now get on with business. Hopefully the 1st quarter numbers due in a week or two will show some improvement.
Gator
Ya'll know the disclaimer, still doesn't keep me from pointing out the bad as well as the good. |
