You may recall in one of my last posts I stated that at no time have we been apprised of exactly what the catalyst was that "prompted" the restatement of Vapor Group's financials in the first place.
I understand that Dror asserts he agreed to restate said financials, to account for the embedded conversions, with the 2nd CPA firm, Brooks & Associates." However, it still begged the question of "why" restatement became an issue in the first place. I feel that question has adequately been answered.
Dror, starting a new company and endeavoring to so-call funnel off assets is not going to work. First, in the event that Dror is one of the eight (8) eluded to then any attempt to divert funds/assets would only present with greater incriminating weight not withstanding the legal ramifications to such actions in lieu of the pending investigation. The best course Dror could take would be transparency.
Restatement of a company's financials is not a quickly executed event. Further, given the recent events surrounding Terry Johnson's auditing practices it would no doubt call into question ALL financial periods for which Johnson was the auditor. It is most certainly no longer an option to simply not report now as some have suspected.
Expedient follow through and transparency will be Dror's best course of action. In Dror's favor are the conclusion reports by Johnson with respect to Vapor Group being an ongoing concern and as well Johnson's written statement to the SEC that Dror sought to file with his supporting documentation.
Sadly this information will no doubt reverberate negatively against the share value. But, I think Dror is working to drive the foot print and sales of Vapor Group in an effort to counter balance the damage that has resulted from this investigation. I firmly believe Dror has known all this time that this was in fact underway and as such has been working to distance himself from Johnson and that can only be done by restating, transparency and expediency.
It makes no sense to continue promoting and driving Vapor Group's market presences if your game plan is to funnel off assets to another created company. The only answer to negative news where once previously positive news and/or results were believed is...Greater Positive news and results. If Vapor Group can restate and demonstrate consistent revenue growth and reduction or NO debt...All of this will be a distant memory.
I for one would be very interested in knowing exactly "What the time frame for producing the restate financials were" by David Brooks & Associates that Dror contended were not acceptable to Vapor Group's BOD time frame? I think that would answer some questions regarding whether or not Dror wanted expediency or to drag out the fins.
My money says Dror is not stupid and therefore knows as the CEO his signature on SEC forms binds him. Therefore his best course of action is to be out ahead of the situation and to do that he needs to restate expediently. Just my opinion...GLTA
