Ann: Xped Complete Jemsoft Acquisition, page-35

Ah good ole RR here to mislead us again.

Point 1 - yes, you can capitalize direct manufacturing expenses into inventory and store them on the balance sheet as inventory. However - this isn't 'bending' any accounting rules. This is exactly how direct labor, direct materials, and attributable overhead costs are supposed to be treated. You capitalize them into inventory - and they are released into the P&L as a cost of sale when you sell that related inventory. That's how every manufacturing company in the world handles this.

Now by 'bending rules' did you mean you shouldn't capitalize these costs? Because that's flat wrong. Or did you mean to suggest that they are aggressively doing this to window dress their financials? Are you once again making claims that the company is scamming you? Seems you are now making claims of either fraud or negligence against two companies. Keep in mind those numbers @Sammy_tic has displayed come from the reviewed half-year accounts so you're roping Pitcher Partners into your claims against XPE as well.

Yes it's a review at December and not an audit (we'll see the audited numbers soon enough), but they still need to give all indications that they are at least materially correct. And with a company the size of Xped, materiality is very small and leaves little room for 'creative accounting'.

Most likely you just meant to continue you tirade of berating the company - and decided to use a normal accounting treatment to scare the uneducated into believing your garbage. Or maybe you just don't understand it yourself.

Point 2 - You say they haven't announced increased sales.... Um. Yes they have. Those figures show JCT generating 488k in revenues for the 2 quarters ended Dec 16. It's reasonable to suggest that's $244k in revenues per quarter. In the most recent quarterly activities announcement, they stated JCT has earned $340k in revenues in the March quarter -- for an increase of about $100k or nearly 40% one quarter on quarter. So yea, 40% up seems like an increase to me.

So please, do tell, where are you getting your data that suggest they haven't increased sales because based on their disclosed financials - that seems flat wrong as well.