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Microcap & Penny Stocks : FAMH - FIRAMADA Staffing Services -- Ignore unavailable to you. Want to Upgrade?

To: Fitz who wrote (16194)	5/8/1998 7:41:00 PM
From: Little Engine	Respond to of 27968

I'm confused by something I saw on the balance sheet. Perhaps some lurking accountant here can help me out. In the six month financials posted by Brad (Post #132), FAMH stated that their total assets as of 6/30/97 were about $1.9 million. The numbers released today indicated assets of $5.9 million. Assuming that FAMH earned about $1 million in the last six months of last year, additional assets coming in would have been $3 million. Where did that $3 million come from? It wasn't.... ... stock sales, since the first half statement showed 19MM shares outstanding, and the financials supposedly are figured on 20 MM shares (stated by Ira, many times). Even if they sold 4MM shares in the last quarter, it wouldn't have raised $3 million, given the low stock price last year. ...accounts receivable, since they actually dropped, if I recall the investor packet containing 1st half numbers. (I believe it was about $1 million at the time). Even if $3 million was raised through stock sales, that begs a question... where did the money go? Further confusion, since (again), the investor packet stated a positive cash balance at the six-month mark. Earnings of $1 million plus $3 million in stock sale proceeds would mean $4 million of cash delivered to the coffers. Yet only $2.8 million remains at the end of the year in cash. If the money, indeed, came from stock sales, it looks like the company is bleeding money somehow (to my admittedly untrained eye). The other $1.2 million did not seem to go to pay off debts, since the liabilities matched almost exactly between the two statements. Can anyone (without shooting the messenger.... some people may actually be curious as to how FAMH figures assets) explain where the extra $4 million in assets came from? Thankfully, L.E. P.S. What makes anyone trust the pro forma numbers, given Ira's projections for last year, which were for .21 EPS?