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Microcap & Penny Stocks : ADOT - BIOMODA: Profitable Technology with Purpose -- Ignore unavailable to you. Want to Upgrade?

To: BIGFRED who wrote (1170)	6/26/1998 2:22:00 AM
From: Chuck Rubin	Respond to of 4650

So, I guess what you are saying BIGFRED is that the fundamentals of success are there, its just going to take time. In other words, this is not an overnighter....but a longtermer. I have patience and don't need instant gratification, that is, if there is eventually light at the end of that tunnel. Chuckr

To: BIGFRED who wrote (1170)	6/26/1998 9:27:00 AM
From: Wink	Respond to of 4650

BIGFRED, Note that the current financials include the unrealized gain on the Biomoda holdings as income. Therefore it does show up in the earnings per share figure. Also note that the "contract" is expected to be filed in 6 months for 2 BB's. The first BB may still be on schedule for July, and because they are using the % of completion method of accounting, they will realize some income for this in the next few quarters. ;>) PS Thanks John for your informative series. Much appreciated! Wink

To: BIGFRED who wrote (1170)	6/26/1998 9:29:00 AM
From: LFISKY	Respond to of 4650

Big Fred, I am a little bit rusty on my accounting rules because I haven't done much public accounting lately, but I think this will help. Because ADOT currently owns between 20% and 50% of Biomoda, the key issue on whether they should treat their investment under the cost or equity method lies in their ability to exert significant influence over the control of Biomoda. (i.e. representation on board, participation in policy making, intercompany balances, technological dependency, etc.) Recently the profession has concluded that anything over 20%, without evidence to contrary would be enough to exert influence and therefore use the equity method. What this means is that ADOT would recognize their percentage of Biomoda's earnings. If not, they would use the cost method and only report any dividends that Biomoda would pay out. Hope this helps, LFISKY

To: BIGFRED who wrote (1170)	6/26/1998 10:26:00 AM
From: Brad	Read Replies (1) \| Respond to of 4650

Fred, Good catch. I agree, the EPS projection I listed for 98 was incorrect (sorry). I was so focused on the Biomoda developments that I forgot to update the EPS calculations in my overview. Those calculations should have been re-figured using the 12 million shares and a different estimated delivery. I will correct that. As for the effect of Biomoda on ADOT, I'm not a CPA, but I believe your assumption is correct. But it's better for a CPA to answer this, so I will defer to them. However, Biomoda income should increase the value of Biomoda shares, which would in turn be reflected as an increase in the value of that asset to ADOT. If Biomoda is bought out, ADOT would realize a very substantial cash payment. And from my conversations with Biomoda, I would say that would be a very, very large amount. If you call Biomoda, you might ask them about this because it is very interesting. Best wishes, Brad