Btw, as a follow-up to my post, I still feel like the company can/is making sales and money with it's product. The SEC indicated that it is looking at asset accounts on the balance sheet, not any lines on the income statement.
If anything, the executives are siphoning the cash off somewhere, perhaps using the "investments" in Rosario to hide that the cash is gone?
My accounting is not perfect, but is this feasible?:
Can the cash from sales go directly to "investments" which aren't real? Management writes up the "investments" account each period in order to siphon off more money, while investors are led to believe that management made good decisions with investments which led to the rise in the account.
If the executives are doing this, I'd be extremely disappointed considering the company and the product is actually doing well. Why would they ruin their reputation and waste an opportunity like this where they will likely make money from their options to steal?