In order to resolve this problem I again recommend that jobs not be closed and invoiced until they are completed. If, in certain cases, you must invoice them in order to speed up collection of the receivable fine but leave them in unearned revenue so we do not overstate revenues, assets and income on our financial reports. In order to comply with my recommendation in paragraph three of my March 23rd memo, we should have our head inspector sign off on jobs when they are complete. This document should then be forwarded to the front office and attached to and be filed with the other paperwork for completed and earned jobs. If an exception must be made, an exception report should be completed and filed indicating the date, job number and reason for the exception. Since this should only happen on rare occasions it will cause very little additional work, maybe a minute or two per exception. Calling a job complete before its completion in order to make the financial reports look better than they actually are, is not a legitimate reason for an exception. Calling a job complete and earned should never have anything to do with what time of the month or quarter it is. In addition, we should notify anyone who received these above-mentioned financial reports of the overstatement of income and the reason for it. This should happen only after a thorough investigation to make sure the amounts are correct. I am available to assist in any way necessary for this, of course. There is one more item I feel worth mentioning here. It is critical to understand that if a job does not cover all its cost, including overhead, that job lost this company money. We incur in excess of $500,000 of overhead cost each quarter. Approximately $95,000 of this is depreciation, but the remainder is cash money going out of here. Im not saying every job will always be profitable, Im just saying that when we look at a job upon its completion to see how it did, if it did not cover its overhead cost it was a loser. I hope these remarks and recommendations are helpful. As always, I am only concerned with the wellbeing of this company. Without integrity in our financial reporting, we will never attain the great things we all expect for SmartTool. I know this is a difficult subject, and I appreciate the tremendous pressure you are under. If I did not call your attention to this matter so you can address it, I would not be doing my job. Please let me know if I can be of any assistance to you on this or any other matter

Question:.What do you think about this advice to the stakeholder to contact the financiers and of stakeholder decision to do so without first contacting Doug.?(Doug: CEO and largest stockholder)