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Other Circumstances Surrounding PK Ventures’ Operations and
Financial Arrangements
A. Going Concern Notes in the Business’s Financial
Statements
1. PK Ventures, SLPC, TBPC, and TPTC
Note 10 to PK Ventures’ audited financial statements for the
year ended December 31, 1989, set forth the going concern
position of the corporation. Note 10 stated, in pertinent part,
the following with respect to the corporation’s financial status:
“Management’s plans include several steps which may mitigate the
current adverse financial condition. * * * The Company’s
management extended payment terms related to certain accrued
payables such as officer’s salaries, indefinitely, subject to
cash availability.” The notes to SLPC, TBPC, and TPTC’s audited
financial statements for the year ended December 31, 1989, also
include “going concern” notes that state that each corporation’s
management had “extended payment terms related to certain accrued
payables such as officer’s salary, indefinitely, subject to cash
availability.” No corporate resolutions and/or other agreements
by PK Ventures, SLPC, TBPC, or TPTC set forth the terms of these
extended payment arrangements.
2. PKVI LP
Note 8 to PKVI LP’s audited financial statements for the
year ended December 31, 1989, set forth the going concern
position of the partnership. Note 8 stated the following with
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