-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, NPBVUZyjlisuuZFP1vKZpimQvmwhjHfa9txpZpt2QJVSxxMKT2VvRAEOCO0rhXnA HsVsiWET76K6wg0Frr10UA== 0001144204-08-032537.txt : 20081006 0001144204-08-032537.hdr.sgml : 20081006 20080528211103 ACCESSION NUMBER: 0001144204-08-032537 CONFORMED SUBMISSION TYPE: CORRESP PUBLIC DOCUMENT COUNT: 2 FILED AS OF DATE: 20080528 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SYNDICATION NET COM INC CENTRAL INDEX KEY: 0001107604 STANDARD INDUSTRIAL CLASSIFICATION: [6221] IRS NUMBER: 522218873 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: CORRESP BUSINESS ADDRESS: STREET 1: 1250 24TH STREET NW STREET 2: SUITE 300 CITY: WASHINGTON STATE: DC ZIP: 20037 BUSINESS PHONE: 2024672788 FORMER COMPANY: FORMER CONFORMED NAME: GENERATION ACQUISITION CORP DATE OF NAME CHANGE: 20000223 CORRESP 1 filename1.htm


17115 KENTON DRIVE, SUITE 202A
CORNELIUS, NORTH CAROLINA 28031
PHONE: (704) 584-0268
FAX: (704) 895-1528
bmpesquire@aol.com

May 28, 2008

Delivered by electronic submission via EDGAR, and US Mail

United States Securities and Exchange Commission
Division of Corporate Finance, Mail Stop 4561
450 Fifth Street, NW
Washington, DC 20549

Attn:      Ms. Jennifer Monick, Staff Accountant

Re:         Syndication, Inc.
Amendment No. 1 to Form 10-KSB for Fiscal Year Ended
December 31, 2006
Filed April 24, 2007
File No. 000-29701

Dear Ms. Monick:

I am securities counsel for Syndication, Inc. (the “Company”). Please find below the Company’s responses to the Staff’s comment letter dated March 24, 2008. The numbering of the responses corresponds to the numbering of the Staff’s comments.

Form 10-KSB for the year ended December 31, 2006

Financial Statements

Notes to the Financial Statements

Note 1 - Organization and Summary of Significant Accounting Policies

o. Debt Discount Costs, page F-17


Jennifer Monick
March 6, 2008
Page 2
 
Comment 1.
We note your response to our prior comment one. Your response did not address our comment; thus, the comment will be reissued. It appears that your debt discount was equal to the debentures’ face value at issuance, or $1,150,000. It does not appear that your effective interest rate method calculation takes into account the debt discount of $1,150,000. Please revise your effective interest rate method calculation to incorporate the debt discount of $1,150,000, or advise. With your response, please provide us with a SAB 99 analysis.

Response 1.
We have taken into account your comment and have determined to restate our financial statements for the period in question, as well as the three quarterly periods following. We have timely filed a Form 8-K on May 27, 2008 indicating our intention to file an amended Form 10-KSB for fiscal 2006, and amended Forms 10-QSB for fiscal quarters ended March 31, 2007; June 30, 2007; and September 30, 2007. We intend to file these amended Forms with accompanying restated financial statements within 60 days.
 
If you have further questions or comments, please feel free to contact us. We are happy to cooperate with you in any way we can.

Very truly yours,

/s/ Bruce Pritchett

Bruce M. Pritchett
Counsel for Syndication, Inc.

BMP
cc:  Syndication, Inc.


Jennifer Monick
March 6, 2008
Page 3
 
SYNDICATION, INC.
Exhibit A
To SEC Response Letter of March 6, 2008

Explanation as to how the Company did in fact take into account the information referenced:

The Company has considered the actual debt amount of $1,150,000 in calculating the effective interest rate. The Company made the calculation in 3 separate installments since we received the amounts in 3 different installments. (Please refer to the worksheet provided in Exhibit A to our previous response letter, dated January 15, 2008.)

For example, the 1st installment of $300,000: We actually received $240,000, after whatever charges/discounts etc. That carries an interest rate of 12% per annum. That means, we pay interest on $300,000 x 12% = $36,000. But we actually received only $240,000. That means, we are paying interest of $36,000 on actual funds available of $240,000, which comes to the effective rate of interest of 36000/240000 x 100 = 15%.

In this rate (calculated above), the amount of $36,000 annual interest is based on the total debt we owe them (we owe them $300,000, not only the $240,000 actually received). Thus the effective rate of interest HAS taken into account the total debt amount we owe.

The calculations for the 2nd & 3rd installments also go along these same lines.


Effective Interest Rate Method:
       
             
             
Note 1 of
$300,000
         
             
 
Debt Face Value
     
300,000.00
 
Stated rate of interest
     
12.00%
 
Hence, the annual interest on face value
   
36,000.00
             
 
Actual amount of funds made available after expenses
 
240,000.00
 
Effective rate of interest
     
15.00%
             
 
Maturity value of the debt
     
300,000.00
 
Present value of $300,000, due In 3 years at 12%, interest payable quarterly
 
   
(Table 6-2)
0.65752
=300,000 * 0.65752
 
         
197,256.00
 
 
Present value of $9000 interest payable quarterly for 3 years
   
   
at 12% pa (table 6-4)
     
     
2.28323
 
82,196.28
279,452.28
             
 
 
 
 

 
Jennifer Monick
March 6, 2008
Page 4
             
Note 2 of
$700,000
         
             
 
Debt Face Value
     
700,000.00
 
Stated rate of interest
     
12.00%
 
Hence, the annual interest on face value
   
84,000.00
 
Number of years
     
3.00
 
Actual amount of funds made available after expenses
 
590,871.68
 
Effective rate of interest
     
14.22%
 
Effective rate of interest
Nearest
168,038.00
 
15.00%
       
2,181.71
   
       
160,000.00
   
       
5,965.49
   
       
254,686.48
   
       
-
   
       
590,871.68
   
             
 
Maturity value of the debt
     
700,000.00
 
Present value of $700,000, due In 3 years at 12%, interest payable quarterly
 
   
(Table 6-2)
0.65752
=700,000 * 0.65752
 
         
460,264.00
 
 
Present value of $21,000 interest payable quarterly for 3 years
   
   
at 12% pa (table 6-4)
     
     
2.28323
 
191,791.32
652,055.32


Jennifer Monick
March 6, 2008
Page 5




             
Note 3 of
$150,000
         
             
 
Debt Face Value
     
150,000.00
 
Stated rate of interest
     
12.00%
 
Hence, the annual interest on face value
   
18,000.00
 
Number of years
     
3.00
 
Actual amount of funds made available after expenses
 
120,000.00
 
Effective rate of interest
     
15.00%
             
 
Maturity value of the debt
     
150,000.00
 
Present value of $150,000, due In 3 years at 12%, interest payable quarterly
 
   
(Table 6-2)
0.65752
=150,000 * 0.65752
 
         
98,628.00
 
 
Present value of $18,000 annual interest payable quarterly for 3 years
 
   
at 12% pa (table 6-4)
     
     
2.28323
 
41,098.14
 
             
   
Combined present value - carrying value of the Debt
139,726.14


Jennifer Monick
March 6, 2008
Page 6



SYNDICATION, INC.
Exhibit B
To SEC Response Letter of March 6, 2008

I, Brian Sorrentino, hereby acknowledge the following:

(1)
that the Company is responsible for the adequacy and accuracy of the disclosures in the filings:

(2)
staff comments or changes to disclosure in response to staff comments do not foreclose the Commission from taking any action with respect to the filings; and

(3)
the Company may not assert staff comments as a defense in any proceeding initiated by the Commission or any person under federal securities laws of the United States.

By: /s/ Brian Sorrentino                                          
Brian Sorrentino, Chief Executive Officer

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