Jacobs Financial Gr. Inc. (fka JFGI)

[Sobek]

The first 8-K sounds like JFGI fired their old PA saying that when Malin Bergquist & Company merged with BKD in 2013 they got put on the back burner. Also that Malin was ok with it so it was a clean and legal separation. Thing is, they have always been late on their filings. There's one NT after another in their filing history.

Question is... so why the concern now????

The next 8-K says they hired EKS&H as their new PA and their first piece of business is "the immediate audit of the Registrant's financial statements and schedules supporting the financial statements which will be included in a proposed Form 10-K filing for the fiscal year ended May 31, 2013." Because it says May of 2013, it sounds like they are doing a catch up 10-K before do the 2014 filings.

Their last filing was from April of 2013 then another NT in August with no follow up report. Supporting the reason they changed PA firms.

Also EKS is a much smaller PA firm. Which would mean more hands on for quicker services.

So why does JFGI need to get caught up right now? Is it for something that came up and the bigger firm couldn't do it in the time frame they need it done by?

But then there's the 8-K from July 15th, "On July 9, 2014 the Registrant completed a $4,500,000 financing. In effect, a subsidiary of Registrant borrowed the funds at 8.00% interest with principal repayments on a ten year schedule. Proceeds of the borrowing were applied (i) to purchase from certain of the Registrant's note holders 50.7% ($1.775 million face amount) of the outstanding senior promissory notes comprising a $3.5 million financing dating from 2008, together with interest accrued thereon and the associated collateral, which senior promissory notes have been in default,
(ii) to pay in full delinquent tax liabilities owed to the Internal Revenue Service and State of West Virginia, (iii) to pay an outstanding judgment, and
(iv) to pay certain other current liabilities. The financing was a product of the Registrant's ongoing efforts to restructure its balance sheet to position itself to take advantage of business opportunities."

So I guess the next question is, what is their next move?