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Engineeringcom Incorporated V.EGN



TSXV:EGN - Post by User

Post by deweytakemon May 22, 2011 9:24am
307 Views
Post# 18612246

Financial Statement Anomaly

Financial Statement AnomalyWhile the Q4 financial statements look good at first, the reason the company went from -482K net loss in 2009 to +78K net profit in 2010 is because of a Q4 "vendor reconciliation adjustment: of 481K.  If not for that, they would have lost another $400K+.

So the $400,000 question is, what was this adjustment?  I can't find any explanation in the last news release, or on their website.  Does anybody have any real information on this (as opposed to speculation)?  I wrote to the company for clarification and will post any reply that I get, probably not in time for market open.

As for the earlier comments, the stock price is not up much but the volume of trades are up, so perhaps this week will see a bit of a run up on the price.

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