Gatekeeper Systems Inc V.GSI

Question for the Board

[mikeonmicrocap]

Someone asked me about Gatekeeper having a large amount of  non cash earnings.  Can someone explain what that is and how it affects the company?

Thanks

[RogersBulll]

GSI had $3.5 mil in net earnings in 2020. $1.4 million was tax recovery, so it doesn't actually add to our cash, it just boosts the on paper profit of the company. $2 million was attributable to operations and hits our bottom line while also adding net cash to the company. Either way, still profitable and all the earnings in Q1 were cash/operational profits. GLTA

[Gord_Alberta]

I think it is the barter system. If no cash on hand, the school board pays them in bus's. Maybe someone should drop by the Gatekeeper building & check out the condition of the yellow vehicles... ;-)  

[westcoast1000]

In essence, GSI got a tax break from previous losses in more recent years. So that made them even more profitable than if they had no accumulated previous losses.  My guess anyway. I did not look up previous income statements. 

[Possibleidiot01]

Accounting makes my head spin. Investopedia has the following definition for non-cash earnings. "A non-cash charge is a write-down or accounting expense that does not involve a cash payment. They can represent meaningful changes to a company's financial standing, weighing on earnings without affecting short-term capital in any way. Depreciation, amortization