Scott, yes the reason for the reverse split is to check the last box needed for them to get on Nasdaq. They weren't able go get the 1Q 10Q filed until 3 days after its extended due date, but on one day after the extended due date of that filing, they made this filing with Nevada setting up the reverse split. There's no way they would do that final step unless they had the clear blessing of Nasdaq, telling them that that was in fact one of the last steps needed and that as soon as they did that and one other thing (see 2nd paragraph below), they would be on Nasdaq.
Once they are on Nasdaq the trading liquidity of the stock should increase significantly due to the significantly higher liquidity on that exchange vs. the OTC market.
I believe the final requirement by Nasdaq (other than the reverse) is that they will require that FTE file a registration statement to at least begin the process of registering all this stock that they have issued privately in the last 9 months or so. My experience is that Nasdaq doesn't like to see too many shares of unregistered stock in a company that is just getting onto the exchange. So I'm looking for FTE to file a registration statement sometime in the next few weeks.
The 1Q 10Q had a disappointing top line, which was partially offset by much stronger than expected gross margins. Also their SG&A expense about doubled vs. the prior year, a much larger increase than what I was expecting. I guess it costs a lot of money to enter new markets.
