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Biotech / Medical : PLSIA (Premier Laser Systems) -- Ignore unavailable to you. Want to Upgrade?

To: Sr K who wrote (1618)	7/8/1998 9:34:00 PM
From: Pluvia	Respond to of 1773

<<<Those who argue that Premier has been too liberal in its accounting and needs to write down equipment assets and other assets more than GAAP requires may be missing (or ignoring) the prudent course for a company that has tax loss carryforwards of $23 million or so.>>> BEKlein, Last time I checked, including overvalued assets, or worthless assets on a balance sheet constituted fraud, not "liberal accounting practices". Have you checked out PLSIA's use of Mattan stock when they were basically broke before their last securities offering? Also, I don't think making false misleading statements indicating revenues are significantly higher than they are, or sending lasers to a freight forward warehouse and counting them as sales when no purchase order existed, and the lasers were clearly not sold, would be considered "liberal accounting practices" either. I think the justice department has a different term than "liberal accounting" that they use to define these activities. Cheers Steve

To: Sr K who wrote (1618)	7/9/1998 2:02:00 PM
From: Pluvia	Read Replies (1) \| Respond to of 1773

BEKlein, One other thing while we are talking about PLSIA's accounting practices... The Prospectus I have was an early one for their secondary, don't know what the final one looked like. Here's what was in the early prospectus for the secondary: Cash & Cash Equivalents 35,463 Short Term Investments 4,547,377 AR net 508,315 Inventories 2,185,355 Prepaid Expenses Other Current Assets 419,504 Now, it says in note (6) detailing "Short Term Investments" that the "Short Term Investments" amount represented investments in Mattan which had a fair market value as of March 31, 1996 of 4,547,377 (1,150,000 shares valued at 3.95) Hmmm same amount as short term investments? The problem is, Mattan was basically broke at the time, trading with zero volume on what some call one of the most corrupt North American securities exchange -- the Alberta Stock Exchange. Someone -- like the auditor, should have figured out that if anyone had sold $5,000 of Mattan stock it would have dropped the price to like .20 from 3.95. Mattan's stock price was bullshit, and valuing over a million shares at market, when the market could never pay that much for the stock, and the company (Mattan) was basically going down the tubes, seems like a big ol screw up to me. And what about those inventory numbers? I seriously doubt their inventry was really worth that much. Take away the Mattan stock and the IMO questionable current inventories and the current assets go from $7,696,014 to $963,282. Then realize the majority of the other assets were "Intangible Assets" like their IMO bullshit patents valued at $7,353,462 (bullshit because they patent products they cant seem to sell profitably, so I ask what value do they have?). Take away the IMO bullshit Intangible Assets, the IMO questionable Inventories, and the IMO Bullshit Mattan Stock value, and Assets go from $15,674568 to $1,588,377. Now that is some interesting accounting. Good news for the shareholders though -- the Auditor shown in this prospectus was Price Waterhouse and they have deep pockets. Cheers Steve