:lol

 

Where's my check?

Crooks

It's kind of pointless to draw too much of a conclusion from these financials - at a baseline I have trouble how anyone can state that they are doing well financially

 

Also, one thing I noticed above that definitely needs to be restated is that accumulated deficit =/= total debt

It's kind of pointless to draw too much of a conclusion from these financials - at a baseline I have trouble how anyone can state that they are doing well financially

 

Also, one thing I noticed above that definitely needs to be restated is that accumulated deficit =/= total debt

 

Deficits do go into total debt though

not necessarily - i'm going to simplify for the conceptual

 

the accumulated deficit is a balance sheet item that shows the total accumulated losses over the operating history of the entity as derived from the Income Statement

 

it will erode the equity as shown on the balance sheet

 

if a company goes heavy into investing in future products that will not show immediate returns and if they need debt to fund these investements then you can have a situation where you have a debt driven outlay - in real basic terms the debt would be broken out into it's short term portion and long term schedule and land on the balance sheet - the money actually invested would be an expense as shown on the income statement

 

without any revenue derived from that investment you are more apt to run a net loss which can lead to an accumulated deficit position

 

this is very common with bio-pharm or any R&D driven company ..... if you just looked at their financials on the surface level they look an absolute mess

 

however, you can have a business that is unprofitable over time and bearing an accumulated deficit - yet have a zero debt position

 

for example, you hold start a business - obtain $250k in mixed assets to go against a cash holding of $750k (total assets = $1M) ..... throughout the year you have short term liabilities of $200k and no long term liabilities and zero debt

 

each year you consistently lose $100k and to keep it simple you just absorb the loss from your cash - pay as you go

 

so after 3 years you could have the same zero debt position and an accumulated deficit of $300,000