Severance packages had an impact on cash flow:
General and administrative expenses for the first quarter of 2012 increased by $412,887, or 97%, to $838,455 compared with $425,568 for the same quarter of 2011. General and administrative expenses include all payroll and related costs for the Company. Payroll and directors’ compensation costs decreased on a quarter-over-quarter basis by $18,281; however, the Company took a one-time restructuring charge of $349,550 relating to severance costs in the period.
Some went to Mark Farrell. Interesting that he was given 12-17 million in shares also.
Also interesting is that to get the processing division back about 17 million shares were issued at a deemd value of 5 cents.
If the shares are worthless, why bother. Mark must have known about the debt problems. Since he left there were hardly no merchant/dealer sign-ons. the problems were at the doorstep back in March 2012.
Despite everything,the new president Dave Campbell kept talking about a profitability timeiine which was possibly drawing nearer. (See 2nd Management Analysis and Discussion 2012--- SEDAR)
Two things stand out. Why accept shares when they are almost worthless, and why remain such optimists unless everyone was way out of touch with reality. Myabe like me. Part of my optimism on these posts were fed by the optimism of the two presidents' statements. That's all I had to go by.