Timeline for releasing 10K and 10Q Also plans for merger!
This is an email that I received from IENG in regards to the timeline for the filings that we all have been so eagerly anticipating.
As usual, personal data has been replaced with hash tags until authority is given to release it.
-----Original Message----- From: Tony #### <##############> To: zimvestment<############> Sent: Wed, Jul 1, 2015 2:55 pm Subject: Incompetent Auditors In my world, if a member of the crew is not capable of performing the task at hand, they are replaced with an individual that is. If the auditors refuse to perform on a timely manner, they should have been fired, and replaced with one that can. That applies to the counsel, and any other party that fails to perform their task in a matter that would be positive to the company’s goals and achievements opposed to detrimental to them!
Zimvestment@###.com Jul 1 (3 days ago) To #####, me Tony, you are correct, and to be honest, not the auditor directly, but the internal accounting firm (outsourced) firm after yesterday's very stressful bunch of calls, was the problem. We went through step by step what the problems and issues were, and are, steamed from their handling of all the consolidation and audit prep documentation and confirmations for the auditor. After going through what is needed and what was needed by the auditor, it was determined and discovered that the auditors were still lacking back up documentation and there was work that needed to be performed by Brio financial on Stock reconciliations, debt conversions and other matters like that, that impacts the balance sheet for the auditor.
I now know and I am now in direct communication with the senior partner at the auditing firm RBBB Auditors in Somerset NJ ,as to exactly what they need and I have the list and no longer going through Brio ,but here is what we have . The good news is it was confirmed that there are NO issues related to Patten energy or the other subs. It was also agreed by all of them, that I will have direct communication going forward but this is what is needed to finalize and to file.
They are now telling me that a handful of the audit confirms that were sent out by the audit firm have not come back and we are getting the names of who they are and we will get them back, but no one told us, so we wouldn’t have known as they go directly to the audit firm, for independence reasons. I have spoken to the senior partner yesterday of the former audit firm Dejoya Griffith to send the consent, and yes they agreed they have no issue but I am told by our auditor we need them to send their " Work Papers" which is a requirement of the SEC, but again, this was something that should have been requested by Brio financial on behalf of the auditor and it was not! I got the senior partner from Dejoya (Arthur) on the phone with our auditor, Robert Quick, and this process is being done, but this should have been done 45 days ago!! With this items and matters resolved which are not all that much, but will take a handful of days to put it all together, and then our auditor can then complete both the 10k and then subsequently the 10Q.
They agree they will have the 10Q being put together at the same time as they are putting all the K stuff together and get reconciled. Rob Quick from RBBB accountants, our auditor, has agreed to this time table. unfortunately, the 10k will not be filed until the 15th of July, and then the 10Q they feel will be by the 22nd, and we have already started to plan for the June 30th Q which will be due by august 15, and we now have a game plan and strategy but it will take this time to correct the problem that has been created. That's as straight forward and as honest as I can be, and I am very upset about it but I am taking the bull by the horns to get it fixed.
We are also agreed that we ,the company, can move forward with the plans to enter into the LOI with the new company I have been telling you both about, and I will be able to discuss all the details of it ,as soon as we sign the LOI, file the 8k and announce it which will be next week! I have also had conversations about bringing in additional help on the operational side to help me and also ,bringing in a new Board member ,and I am going to suggest ### for that roll and he would be involved with us from an independent " Oversight" point of view as the SEC requires independent BOD members from now on. I like ### background and it would also give direct access to all the internal functions, direction and focus of the company. I would like ### to think about it and we can discuss it.
Lastly, I am pushing our law firm to file an 8k spelling out the delay and course of action being to correct. Of course they are wrestling with the language as no one wants to take responsibility but Ernest and I are insisting on it. We should see something back from them tomorrow, and then we get it filed a.s.a.p. We will also be getting our draft of the LOI by Monday and I am going out to Chicago next week and I hope to get it signed by next Wed or Thursday!!! I am trying to give you guys the best information we have available ,and although we at least now got to the bottom of what the REAL story is ,the problem is we won’t be fully current until the 3rd week in July, and steps are being taken to prevent it going forward. I am very confident we will be signing the LOI middle of next week and we will be announcing it and filing the 8k as soon as it’s signed as it was also agreed we can move forward despite the delinquent filing.
I wish the news was better but it is at least now, with a firm plan where I can give certain answers and I would really love to have ### join our board. My Best to you both, Jim.
Good luck to all stock holders, and stuck holders!
