10-q filing
I was going though the filed 10-q and noticed this bit of information:
"On November 10, 2014, the Company received a letter from Charles E. Murphy, attorney for Gate International LLC and its principals (“Gate parties”), alleging that MGT and its principals have committed breaches of contract in regards to MGT’s operating agreement and are facing imminent litigation. The Company will await the outcome of any legal proceedings and court ruling prior to formalizing any increased equity purchase in MGT. The Company will also take such other action as may be required based on any court ruling in regards to the litigation by the Gate parties. Notwithstanding, as of the date of filing this Form 10-Q, no information or facts have been received by the Company to support the legitimacy of the claims by the Gates parties."
And apparently, they have been behind in filing taxes for some time...............................
"In February 2009, the Company filed appropriate federal tax returns for the years ending December 31, 2003 through 2007 and may be subject to failure to file penalties. For the years ending December 31, 2008 through December 31, 2013, the Company has not filed any federal tax returns. The Company estimates that the amount of penalties, if any, will not have a material effect on the results of operations, cash flows or financial position. No provisions have been made in the financial statements for such penalties, if any.
The Company is working with its accountants to prepare and file overdue federal tax returns for 2008 through 2013, which are anticipated to be completed and filed by the end of fiscal 2014."
If this breaks 10 cents a share I'm out. I made out quite well during that run up to 29 cents a share and jumped out with my dignity and a nice return. 100 million deficit for a small cap company seems odd to say the least.........
* I am long in CBIS
AI
