Hi Brezlin. I'm going to be out a chunk of the day tomorrow, but after a quick perusal of today's financials, I did want to point out a couple of things.
First of all, the company's current ratio is 10 to 1, which is pretty insanely good for a pink sheet company. The typical pink sheet company has Asher debt requiring about 5 billion shares to be converted into common stock over the next five years...LOL So there's not much risk of a sudden Cetek bankruptcy, as exists for most pinks.
Secondly, Cetek's net operating losses (NOL) are almost 4 million dollars, which would be another attractive feature for selling the company. Using a 35% tax rate, that equates to almost a dollar a share of value to an acquiring company.
Third, I continue to be astonished that there appears to be only one subsidiary being reported in the financial statements. So it begs the question which two, or at least one, if he considers Belanger an affiliate, is being excluded? I copied down the wording of the accountant Mr Galuppo, who is giving his qualified blessing of these statements. And you could drive a Mack truck thru the qualifiers in that statement:
In addition, I have no responsibility to identify and communicate significant deficiencies or material weakness in your internal control as part of this engagement.
A review consists of inquiries of the company personnel and analytical procedures applied to financial data. It is substantially less in scope than an audit in accordance with generally accepted auditing standards, the objective of which is the expression of an opinion regarding the financial statement taken as a whole. Accordingly, I do not express such an opinion.
I wonder if this will pass ITAR compliance.
