The 10-K was due to SEC on 9/28/17.
Company issued NT 10-K on 9/28/17.
NT extended “on-time” date 15 days until 10/12/17.
Company issued Shareholder Update on 10/19/17 and stated “We will be filing the 10K within the allotted grace period…”
Assuming that there is only a 30 day grace period from the end of the NT period, then the grace period would have been set to end on 11/11/17, 23 days after the SH Update was issued.
So when the SH Update was issued, the company may have fully expected, or at least hoped, that the issues with the lender would be resolved sufficiently to allow the 10-K to be filed before the end of “grace period” and stated such.
So now the 11/11/17 date has passed (today is 11/21/17) and the 10-K and the subsequent 10-Q have not been filed. Would I like another update on the status of the filings and a new forecast date? Sure. Do I think that the company can give me a new firm date. No, I think the issues with the lender have become too fluid to make absolute predictions.
So I will just wait and let the company deal with the issues. I do not need to be constantly spoon fed information that may just change and further cloud the status of the company. I’ll let the company decide how to deal with the lender and do what needs to be done to protect the company, which protects my investment.
I have spent some time reviewing the SEC regulations, the FINRA rules, and the OTC guidelines enough to believe that the company is not in eminent danger of having trading halted or being delisted, especially since they are on the OTC.
As an example, another company that I follow is Hain Celestial Group (HAIN), which is a $4 billion food products company and listed on the NASDAQ, where the listing requirements are much tougher than the OTC.
In mid-2016, HAIN identified internal accounting issues and was unable to file its 10-K for the fiscal year ended June 30, 2016 by the August 29, 2016 due date. They issued a NT 10-K in August. They then failed to file their next three 10-Qs in Nov 2016, Feb 2017, and May 2017. They finally filed their 2016 10-K and the three 10-Qs in June 2017, almost 10 months late. So 4 missed filings and they did not get delisted from the NASDAQ during that time.
There are many rules and regulations but if you review them, you may see that there are many exceptions and appeals, and that they are not simple black and white, make a mistake and you are gone. Lots of drawn out processes and even discretion involved.
