Good morning HHSE friends and followers - It has been suggested that HHSE respond to some of the frequent and silly "criticisms" that the fake stock experts post onto some of the trader chat boards. We generally ignore such obvious drivel. However, one of our larger shareholder's today felt that we should clarify WHY the Q2 balance sheet - which was shown as a side-by-side comparison in the CURRENT filings - "appears" to have a math error.
It does not have a math error. It has a "missing footnote" error caused during the paste-up process from MacReport Media (and since fixed for the OTC markets filing). The footnote clarified why the total liabilities increased for Q2 but that the company was not retroactively restating earnings or shareholder equity... that the Q2 balance sheet was for side-by-side comparison only, and that the reader should refer to the CURRENT (Q3) period in evaluating the company's balance sheet.
Let's clarify below:
Check the OTC markets filing. The addition of $13,170 for accrued interest on "current / short term notes" was added to the CURRENT (09-30-2015) results. It was ALSO applied RETROACTIVELY to the previously filed 06-30-2015 numbers... BUT... the Shareholder's Equity was NOT reduced by $13,170. The 06-30-2015 numbers were provided for COMPARISON only, and could have easily been left off the filing. There was a footnote explaining the retroactive application of accrued interest on the short term notes... but in the paste-up by MacReport Media, that footnote got eliminated and no one noticed. In order to comply with OTC markets, we simply CHANGED the shareholders equity for the prior 06-30 quarter and refiled the document, without a footnote. The addition of "accrued interest" for current (short-term notes) was a recommendation from our new auditors.