RE: : RE: MSQ News continues Interesting, innit, that the March 31, 2011, stock-based compensation amount of $60,502 awarded to Kyle McClay only shows up in the March 31, 2012, financials. It's not on the December 31, 2011, financials, nor is it on financials dated September 30, 2011, and June 30, 2011 (audited).
On another note, Sedi requires insiders of companies to report the options granted to them. Kyle McClay has reported no MSQ options in his sedi filings.
The September 30, 2011, financials show that the $220,611 receivable from Kyle Mcclay was reduced to nil between June 30, 2011, and September 30, 2011. The consolidated statement of cash flows shows this was reduced as a net change in a non-cash working capital item.
The June 30, 2011, audited financials make no mention of this $220,611 owing from Kyle McClay; however, it may have been lumped in with the IEMR/Kirkness disputed amount (which was written-off) as follows:
RELATED PARTY TRANSACTONS(1) The Company entered into a management service agreement with IEMR, a shareholder and a company with a common director. Under the agreement, the Company agreed to manage, direct, supervise and implement exploration programs on the Pine Tree Property for a fee based on 10% of all exploration costs including any overruns up to but not exceeding 15%. Kirkness also entered into a contract to provide drilling services to IEMR. Billings by Kirkness also would qualify as the exploration costs under the agreement.
The Company and Kirkness earned $225,906 management fees and $2,259,054 drilling revenue from IEMR. As of June 30, 2011, accounts receivable and other receivables included $924,080 owing from IEMR.
From the March 31, 2012, financials
Due from related parties (Amounts receivable from related parties is comprised of the following)
Kyle McClay June 30, 2011 $220,661
RELATED PARTY TRANSACTONS (continued)
(d) Key management personnel compensation
Kyle McClay March 31, 2011 Share-based payments $60.502
(4) Mr. Kyle McClay is the President of Kirkness Diamond Drilling Co., Inc. He is also the son
of Mr. Brian McClay.