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Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony, -- Ignore unavailable to you. Want to Upgrade?

To: StockDung who wrote (25189)	3/29/1999 9:08:00 PM
From: StockDung	Respond to of 122087

Why does CYOE give those advances to the companies they are buying? So they can put downpayments on leases to so CYOE can book the sale as income. The following are included in investing activities (See Note 3 to Consolidated Financial Statements): (i) during fiscal 1998, the company advanced funds to NUKO Information Systems, Inc., a potential acquisition candidate. A total of $1,800,000 was advanced under a secured promissory note. The acquisition effort was terminated and subsequently, NUKO filed a voluntary petition under Chapter 11 of the U.S. Bankruptcy Code; (ii) in March 1998, the Company advanced $100,000 under a secured promissory note to INET Interactive Systems, Inc. under an agreed intent to acquire INET. This acquisition is expected to be completed during the second quarter of fiscal 1999; (iii) in February and March 1998, the Company advanced a total of $190,000 in connection with the acquisition of American Gateway Telecommunications, Inc. which was completed in April 1998; and (iv) in January 1998, the Company advanced $450,000 to Systeam, S.p.A. in connection with an investment in convertible notes in that company. The notes will be issued after completion of Italian legal process.