Really REALLY Important Investors read the following from the Commission / Judge: (it completely contradicts Linda Perry's Claim the company is profitable and this is all just a big misunderstanding)
3.4. Remedial Action
Digital Brand has made no efforts to remedy its past violations by filing any of
its delinquent periodic reports. Nor can one accept its representations that it will
comply in the future, because it lacks the resources to do so. According to its annual
reports, from 2003 through 2014 Digital Brand never made a profit. There is no
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evidence that Digital Brand has made a profit since 2014.6 Those ongoing losses
impair its ability to hire and pay for the bookkeeping services provided by Boisseau
and hamper the retention and payment of an auditor. Although Digital Brand has
engaged a new auditor, its assurances against future violations are unrealistic. Its
new auditor has nothing to audit because the evidence is that Digital Brand’s
bookkeeper, Boisseau, has not prepared the books for Digital Brand past the period
of the annual report for the period ended August 31, 2015. Tr. 34-35. Moreover,
Digital Brand has not hired any other firm to prepare pre-audit accounting
packages for the delinquent reports. Tr. 105. Digital Brand cannot remedy its
violations until it obtains the resources to pay for Boisseau or some other
bookkeeper’s services, and to pay an auditor to audit the bookkeeper’s financial
statements for the company. Digital Brand offered no credible evidence that it has
obtained, or even has a path to obtaining, sufficient resources in the immediate
future.
Further, it is too late for Digital Brand to catch up on its multiple delinquent
periodic reports—even if it could—and avoid revocation. In Absolute Potential, the
Commission found, among other things, that even where the delinquent issuer
became current in its periodic reports during summary disposition briefing, the
public interest still required revocation of its securities registration as a deterrent
to other issuers that might become delinquent. 2014 WL 1338256, at *3-8; see
Citizens Capital Corp., Exchange Act Release No. 67313, 2012 WL 2499350, at *2-7
(June 29, 2012) (revoking registration despite issuer’s efforts to become current);
Calais Res. Inc., Exchange Act Release No. 67312, 2012 WL 2499349, at *2-7 (June
29, 2012) (same); see also Law Enf’t Assocs. Corp., Initial Decision Release No. 487,
2013 WL 2039311, at *2, *4 (ALJ May 15, 2013) (issuer revoked even though it filed
all delinquent reports after Section 12(j) proceeding was instituted).
6 If Digital Brand has made a profit since 2014, it made a deliberate choice not to
put those profits toward satisfying its reporting obligations, making it even more
culpable.
