MYM Nutraceuticals Inc MYMMF

RE:RE:RE:RE:RE:RE:Future Expansion

[WeeblesWobble]

Rockmaschine:

Please don't take offence but this is what happens when non-accountants start talking about "creative accounting".

Interest on debt is recorded on the accrual basis.  Deferring interest payment to the maturity date does not affect the accrual of interest expense, only the timing of actual payment of the interest.  The agreement to defer interest payments has absolutely no impact on EBITDA.

As I noted earlier, the interest deferral agreement is a cash preservation technique.  MYM deferred the payment of approx. $750K of interest for 12 months at a non-cash cost of $285K in the form of warrants.  If the share price is less than $0.095/share, the CEO will not realize all or part of the deferral fees in cash.  And that assumes the CEO can sell the actual shares on a timely basis.  In other words, the CEO has taken on 100% of the risk associated with payment of the deferral fees.

IMO, the deferral agreement is illustrative of a CEO who believes he can lead the company forward in terms of profits with the upside to him that the share price rises accordingly.