V.DM Capital Management What an Indictment!!! I can smell the smoke of frustration of those reading this... Capital management The Company manages its capital to ensure that it will be able to continue as a going concern while maximizing the return to stakeholders through a suitable debt and equity balance appropriate for an entity of the Company’s size and status. The Company’s overall strategy remains unchanged from the prior year.
The capital structure of the Company consists of shareholders’ deficiency, which totaled $1,004,463 at March 31, 2024 (December 31, 2022 – shareholders’ equity of $22,768,645). The availability of new capital will depend on many factors including positive stock market conditions, results of operations thereby access to suitable debt products, and the experience of management. The Company is not subject to any external covenants on its capital.
Shareholder deficit/deficiency =
A Bad Sign -
A shareholder deficit can be, and often is, a bad sign. It means the company not only has been losing money, but has lost more money than its owners put into the company in the first place. Losses drain assets. On the other side of the accounting equation, a company that borrows money to stay afloat winds up with ever-greater liabilities. As the company accumulates debt, it has to spend more money just servicing that debt -- paying more interest at higher rates -- which makes it harder and harder to dig itself out of the hole. This is exactly the kind of spiral that sends a company into bankruptcy.