QSGI, Inc.(fka QSGI)

[jaxstraw]

The SEC only suspends a delinquent SEC Registrant Filer when the company has not satisfactorily responded to correspondence sent by the SEC to the delinquent Filer, or when the SEC has been unable to contact the company.

When the SEC suspends a stock for being severely delinquent in filing Financials it is likely too late for the company to file the delinquent Financials during or after the SEC Suspension. Nonetheless the SEC Administrative Law Judge (ALJ) will convene a formal Hearing where the delinquent SEC Filer has the opportunity to explain why the company had not filed any Financials for the specified periods.

In virtually all instances the ALJ does not accept any reasons for the company's delinquencies in filing quarterly and yearly Financials, particularly when the company could have avoided the SEC Suspension by responding to the SEC's letters inquiring about the Financials delinquencies.

The ALJ will give the company the option to agree to the SEC ALJ revoking the stock registration whereby the company can thereafter apply for a new stock registration under Form 10, or the SEC ALJ will revoke the stock registration under DEFAULT reasons, where default means the Financials delinquencies exist and it is too late to cure the delinquencies. NOTE: In the past 4 1/2 years only one company out of 1127 revoked stocks successfully re-registered their stock though some have tried (examples PELE, LLEG) but were denied by the SEC.


The SEC Registrant Filer could have easily filed a Form 15 to deregister the company's stock and thereafter submit periodical Financials to the NON-SEC reporting OTC Markets. By filing a Form 15 the company would have avoided an SEC Suspension and eventual revocation of the company's stock registration.

When a company has their stock suspended and promises to file their delinquent Financials the biggest question for investors is to ask why the delinquent company didn't simply file a Form 15 after their last Financials so that they would no longer have to file to the SEC and would not have had their stock suspended months or years later. Do not believe those companies who make false promises to file all delinquent Financials because those false promises are usually intended to discourage shareholders from selling their stock holdings when the SEC Suspension ends so that the company insiders can sell their stock to the gullible shareholders who believed their false promises.

Once the SEC ALJ revokes the company's stock registration(s) the stock can never trade again and the revoked stock will have no value.

Courtesy of Renee - http://investorshub.advfn.com/boards/read_msg.aspx?message_id=106114938