Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Microcap & Penny Stocks : Amazon Natural (AZNT) -- Ignore unavailable to you. Want to Upgrade?

To: s martin who wrote (23781)	9/2/1999 11:58:00 AM
From: Janice Shell	Read Replies (1) \| Respond to of 26163

From the auditor's statement: The Company's records do not permit the application of other auditing procedures to inventories. In addition, the Company does not maintain certain customary accounting records and supporting documents relating to transactions with suppliers and customers, nor, in our opinion, is the system of internal control adequate to provide safeguards of assets and to assure proper recording of transactions. I've never run a business, but I should think that keeping track of inventory would be a routine and fairly simple business. Yet apparently AZNT's bookkeeping in this regard left much to be desired. What does that suggest?

To: s martin who wrote (23781)	9/2/1999 12:34:00 PM
From: tonto	Respond to of 26163

Consider the results... from the 10K for last year For the year ended December 31, 1998 the Company experienced a net loss of $4,815,331. The primary components resulting in that loss were: revenues - $392,061; cost of goods sold - $92,275; operating expenses - $5,120,982; and other expenses of $(5,865). While revenues increased by almost nine fold, general and administrative expenses showed dramatic increases. This was primarily a result of the recording of the sweat equity for shares issued based on a prior consulting agreement with certain officers and directors of the company. Additionally, certain salaries were accrued for officers for 1998. Lastly, as in 1997, the increased activities in finding and developing markets and in the increased production process to get finished goods ready for sale and the increased administrative costs. Sylvers salary for 1998 is recorded at over $450,000 for a company that sold less than $400,000. It would fascinate me to analyze their business plan. <g> Salary is accrued and has not been paid out. BUT, look at the sweat equity payout... With a computer system valued at $80,000 minus depreciation one would expect to have sufficient modules to post everything accurately...