Its Really Pathetic...
So a few comments. First off, the numbers cited in the footnote's text do not match the numbers in the balance sheet. He says he has outstanding loans in the text that are much larger then related party loans.
There is no evidence in the financial statements that the Carmichaels are in any way providing cash to UBIQ. On the contrary, they and their family are taking cash, raised from dilutive equity sales, out of the company.
Second, by what rights does the CEO of a company have to secure, what are otherwise unsecured liabilities, and place himself ahead of other creditors. Lets see this stand up in court. I would really like to see the documents from the Board that allowed him to become secured from an unsecured position. The legal term is fraudulent conveyance.
Third, the UCC is mentioned in the 2015 10-K. It either belongs in subsequent events or in the 2016 10-K, which has yet to be filed.
Fourth, all the auditor letter really says is we looked at things. It really means nothing else. And, given the numerous errors in the 10-K one has to wonder what they really did.
This meets all the defining characteristics of a classic fraud.
