From TSIG's 10-K:
Included on the balance sheet is $380,986 invested in an affiliate
company, equal to the costs related to attempting to complete the
proposed acquisition of certain entities. During 1998, the efforts to
complete the proposed acquisitions were terminated and certain former
employees of the Company resigned from the Company and acquired these
entities. In exchange for transferring the rights, if any, the Company
had with regard to these acquisitions and in exchange for terminating
various employment and severance agreements, the Company was issued an
equity position in the entity. Subsequent to December 31, 1998, the
Company sold its equity position for $706,000 in cash, resulting in a
1999 gain of $326,000.
I was assuming that the $326,000 gain would be posted as revenue in the first quarter of this year. Am I correct in that assumption? Does someone know , for sure, how this will be handled? Will the full $706,000.00 be counted as revenue? |
