Where is the audit of Brawnstone? In July 2014, FFFC announced that it had acquired Brawnstone Security, LLC for $100,000 in cash and a $60,000 note. According to the September 30, 2014 10-Q, the Company had revenues of $235,560 for the quarter, mostly arising from the Brawnstone operations. This compares to only about $15,000 in revenues for the six months ended June 30, 2014. Therefore, Brawnstone is a "significant subsidiary" as defined in Regulation S-X and FFFC was REQUIRED to file audited financial statements of Brawnstone for the past two fiscal years. This audit was required to be filed in September 2014. Since it has not been filed, FFFC is not current in its reports with the SEC and shareholders cannot use Rule 144 to sell their shares. If the past Fong deals are any indication, there are many shares being freed up and sold into the market every month. Someone needs to alert the SEC about this.
