Monday, August 25, 2014 8:31:24 PM
I don't speculate on why the second quarter Q has not been filed yet.
I believe, based on the Wall Street Journal Article on the Microcaps and reference to Peter Messineo, the former CFO of IC Places, the auditors and the Company's attorney is going through every disclosure and word to avoid questions later on.
In addition, given the fact that there were only two assets last time, fixed assets and prepaid expenses, on the asset side the auditor is probably trying to determine the bonafide of the prepaid, is it classified properly as current and is the amortization of same correct.
With respect to liabilities, even though it is not required by GAAP it would not surprise me if the auditors confirm the terms, conditions and amounts of the convertible preferred debt.
It would also not surprise me if they are reviewing the accounting for the convertible preferred stock.
If indeed, Mr. Samblis had an employment contract in 2005, if I were the auditor I would first look at the contract and minutes for proper disclosure and also look at Samblis' stock holdings at the end of each year to determine if his holdings were > 50% in order to maintain control which, according to the footnotes was one of the provisions of the Contract although it has never been furnished as an exhibit to any filing.
If he did not have control, as defined, is it an error in prior periods? These are words of art in the accounting profession and, clearly will need to be addressed or, on a peer review, the Firm could be cited for inadequate auditing procedures.
Then there is the question of opening balances and, the auditor be willing to accept same as they affect the first quarter, ultimately as of December 31,2014, the first quarter is included in the annual report and, they can not refer to the work of other auditors' as they (the previous auditor) did not opine on the quarter so, it would not surprise me if they (the auditors') are redoing the first quarter and second quarter.
Given the nature of the accounting profession today, and Sarbanes Oxley coupled with generally accepted auditing standards, the CPA firm in this case must do a review and not be involved in closing the books etc.
There is no indication that IC Places has an accounting department thus, the new Firm may be looking for, or waiting for, someone else to have prepared the trial balances so they can be reviewed.
In short, I believe the Company will be reporting otherwise, without a market quote on the pink sheets (i.e. on the grey market)how will the Company be able to ever convert the debt into shares or do more toxic financing
Accordingly, they are up the proverbial creek without a paddle.
Would love to know how much debt is left to convert and, what discussions are going on between Messrs. Scamblis and his financier Asher.
Absent the toxic financing, how is PNCH going to pay its day to day expenses? Absent the toxic financing how is PNCH going to meet any obligations?
IN short, for a company with no revenues (that we are aware of), limited assets and a ton of liabilities, the review of the 10Q has a lot of issues that I am sure the accountants were not even considering when they accepted this engagement.
Oh well, fortunately I am not an analyst, CPA or other such type of person. I do know that I do not recommend any stock to buy or sell and caution every one and anyone to do their own due diligence.
Cheerio
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