Forum Update, Dr. Mike's Status
Steorn's forum went back to its previous state today, requiring admin approval of new accounts before posting. No comments in the forum itself were made about the subject, but a couple of commenters here mentioned that they were banned. Hopefully all those who were interested in getting accounts were able to get them!
On another note, Dr. Mike updated us on the status of his trip to London:
No tickets (although they say they are working on it, so I believe 'em), no text to read, no idea what I'll see. There was mention of discussions with the spud club, but that is all the NDA parties, so not webbable (is that a word???)
A one way web cam plus the forum would work too. For all of us skeptics that would be a great way to get some idea on how real any of this is. Frustrating because there's only one of me, but hey, it's a start!
9 comments:
Topic: Errors in Financial Statements
Analyzing Steorn’s financials has been a challenge, mainly because of the numerous errors. This includes audited financials. Let me provide one particularly glaring example.
There are two ‘official’ versions of Steorn financials for the period July 25, 2000 to December 31, 2001. Both versions were audited by Phelan Prescott. Both versions were stamped June 4, 2004 by C.R.O. which is Companies Registration Office, the Irish government agency that requires financials. Version 1 was the submission for July 25, 2000 to December 31, 2001. Version 2 was the submission for 2002, but included financials for the July 25, 2000 to December 31, 2001 period. All numbers are Euros.
Version 1
Tangible Assets = 36,678
Debtors = 52,119
Creditors = (133,515)
Net Current Liabilities = (81,396)
Total Assets Less Total Liabilities = (44,718)
Called Up Share Capital = 1,145
Share Premium = 203,283
Profit and Loss Account = (249,146)
Difference = (44,718)
Version 2
Tangible Assets = 36,678
Debtors = 52,119
Creditors = (133,315)
Net Current Liabilities = (81,396)
Total Assets Less Total Liabilities = (24,718)
Called Up Share Capital = 4,503
Share Premium = 199,925
Profit and Loss Account = (249,146)
Difference = (44,718)
You’d think someone would compare the two submissions, especially since they were submitted on the same date!
I have a pretty good idea where Steorn made their mistake, but the financials are so screwed up that I’d prefer not to risk giving my opinion. Suffice it to say that Steorn can’t add and subtract.
Folks already know about the screw-up on the Steorn website with respect to the 2004 and 2005 financials. There are other screw-ups which I will outline over time.
Steorn are incompetent and worse than amateurish with respect to their financials. I wouldn’t trust them to add one plus one and get two on their financials, or on an energy balance around their fictitious free-energy device.
Heheh, you couuld make good money as a forensic accountant if you weren't ready to retire soon. Keep up the investigation, I for one am interested.
The amazing thing is that anyone invested at all with these clowns. I suppose Sean's charisma and gift of bullshit always smooths things over. There are also an awful lot of people with literally more money than sense.
There's one born every minute....
Suffice it to say that Steorn can’t add and subtract.
Looks like this is going to be their excuse when the game is over and the investors start asking quesions.
:o)
Topic: Where are the ‘B’ Class Shares?
Steorn is authorized to issue three classes of shares.
• Ordinary
• Ordinary ‘A’
• Ordinary ‘B’
The vast majority of Steorn shares issued are ‘Ordinary’. Shareholders get one vote per share held.
About 2.7% of Steorn shares are ‘Ordinary A’. These are the ‘Business Expansion Scheme’ shares. Holders of ‘A’ shares also get to vote.
There are either some or no ‘Ordinary B’ Steorn shares depending on which filed financial statements you believe. ‘B’ shares have no voting rights.
Imagine that you are Sean McCarthy and Michael Daly. You own about 60% of Steorn shares, and are in control of everything at Steorn, including your own compensation. You continue to get money from investors by selling shares in Steorn. These additional shares will dilute your own ownership in Steorn, perhaps to the point of losing control. What do you do?
There are a number of easy options.
You can buy more shares yourself, but you certainly don’t want to pay the price paid by current investors. Current investors are paying over 1000 Euros per share, while you bought your shares for 1 Euro cent per share.
Alternatively, you can include shares as part of your compensation. (Note: This approach is not the common practice of issuing stock options to executives.)
A good way of selling shares, but avoiding share dilution is to issue ‘Ordinary B’ shares. Unlike other shareholders, “Ordinary B” shareholders cannot vote.
From the 2005 audited Financial Statements for the year ending December 31, 2005, Steorn first started to issue Class B, non-voting shares.
Quote
During the year the company raised… 336 ‘B’ ordinary shares. The subscription for the ‘B’ ordinary shares was not received until after year end.
Unquote
Strangely enough, in the Annual Return made up to September 30, 2006, these ‘B’ shares don’t show up despite the passing of nine additional months! The ‘Ordinary’ and the ‘Ordinary – A’ shares are shown, but not the 336 ‘Ordinary - B’ shares. What happened, Sean? This seems like another financial statement screw-up?
The discrepancy is NOT because shares were issued and then sold. The Annual Return clearly spells this out.
Quote
Persons holding shares on the date to which the annual return has been up for 2006 and of persons who have held shares therein at any time since the date of the last return…
End Quote
The Annual Return was made up to September 30, 2006 and the date of the Annual Return was made up to September 30, 2005.
Yikes... forensic accountant?? Lol. I'm an engineer not a bean counter.
However, unlike Steorn, I do know how to add and subtract.
Dr. Mike,
Have you checked out "The Basement Mechanic's Guide to Testing Perpetual Motion Machines"? If you haven't, I would suggest you read their section on magnet motors before you visit Dublin. The page is located at:
http://www.lhup.edu/~dsimanek/museum/test-pm.htm
@chilli fries
Yes, I loved it. Saw that back in November or so. There are several other sites too, it may be that one that has the description of the magnetic motor using shielded PM's and it's a homework problem to figure out why it won't work.
I think Steorn's time is up. They invited scrutiny and they got more than they bargined for.
I hope it sticks around for a few more weeks though, the entertainment value is still high. Once my kids are out of school though, I probably won't have as much time to play online.
I agree that Steorn's time is almost up for all but the most fanatical believers.
Sean wants to downplay the July demonstration, but expectations are high from the believers. He knows he can't get away with another Kinetica-type demonstration.
Steorn won't announce time and location to limit attendance. He's been stalling on DrMike's visit.
Sean old bean... you're gonna have to do some pretty fancy talking to get out of this one.
Alas, I think even some of the ‘believers” are starting to come to their senses.
Well, except for the believers that believe in little grey men, Atlantis, and 9/11 conspiracies. Those chaps will be talking about Steorn’s perpetual motion machine long after Steorn’s forum has faded. In there minds “THEY” will have killed Steorn!
The true believers will come up with new conspiracies theories how “THEY” killed Steorn. In the end the true believers will retire Steorn to their pantheon of fantastic beliefs. Steorn will be another of their fallen heroes like Searl and his SEG.
Sean doesn’t even come around anymore.
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