Followers | 185 |
Posts | 10548 |
Boards Moderated | 0 |
Alias Born | 11/23/2007 |
Monday, November 20, 2017 12:16:32 PM
3.4. Remedial Action
Digital Brand has made no efforts to remedy its past violations by filing any of
its delinquent periodic reports. Nor can one accept its representations that it will
comply in the future, because it lacks the resources to do so. According to its annual
reports, from 2003 through 2014 Digital Brand never made a profit. There is no
12
evidence that Digital Brand has made a profit since 2014.6 Those ongoing losses
impair its ability to hire and pay for the bookkeeping services provided by Boisseau
and hamper the retention and payment of an auditor. Although Digital Brand has
engaged a new auditor, its assurances against future violations are unrealistic. Its
new auditor has nothing to audit because the evidence is that Digital Brand’s
bookkeeper, Boisseau, has not prepared the books for Digital Brand past the period
of the annual report for the period ended August 31, 2015. Tr. 34-35. Moreover,
Digital Brand has not hired any other firm to prepare pre-audit accounting
packages for the delinquent reports. Tr. 105. Digital Brand cannot remedy its
violations until it obtains the resources to pay for Boisseau or some other
bookkeeper’s services, and to pay an auditor to audit the bookkeeper’s financial
statements for the company. Digital Brand offered no credible evidence that it has
obtained, or even has a path to obtaining, sufficient resources in the immediate
future.
Further, it is too late for Digital Brand to catch up on its multiple delinquent
periodic reports—even if it could—and avoid revocation. In Absolute Potential, the
Commission found, among other things, that even where the delinquent issuer
became current in its periodic reports during summary disposition briefing, the
public interest still required revocation of its securities registration as a deterrent
to other issuers that might become delinquent. 2014 WL 1338256, at *3-8; see
Citizens Capital Corp., Exchange Act Release No. 67313, 2012 WL 2499350, at *2-7
(June 29, 2012) (revoking registration despite issuer’s efforts to become current);
Calais Res. Inc., Exchange Act Release No. 67312, 2012 WL 2499349, at *2-7 (June
29, 2012) (same); see also Law Enf’t Assocs. Corp., Initial Decision Release No. 487,
2013 WL 2039311, at *2, *4 (ALJ May 15, 2013) (issuer revoked even though it filed
all delinquent reports after Section 12(j) proceeding was instituted).
6 If Digital Brand has made a profit since 2014, it made a deliberate choice not to
put those profits toward satisfying its reporting obligations, making it even more
culpable.
Recent DBMM News
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 07/15/2024 08:30:45 PM
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 04/15/2024 08:54:16 PM
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 01/16/2024 09:32:32 PM
- Form 10-K - Annual report [Section 13 and 15(d), not S-K Item 405] • Edgar (US Regulatory) • 11/29/2023 09:31:08 PM
VHAI - Vocodia Partners with Leading Political Super PACs to Revolutionize Fundraising Efforts • VHAI • Sep 19, 2024 11:48 AM
Dear Cashmere Group Holding Co. AKA Swifty Global Signs Binding Letter of Intent to be Acquired by Signing Day Sports • DRCR • Sep 19, 2024 10:26 AM
HealthLynked Launches Virtual Urgent Care Through Partnership with Lyric Health. • HLYK • Sep 19, 2024 8:00 AM
Element79 Gold Corp. Appoints Kevin Arias as Advisor to the Board of Directors, Strengthening Strategic Leadership • ELMGF • Sep 18, 2024 10:29 AM
Mawson Finland Limited Further Expands the Known Mineralized Zones at Rajapalot: Palokas step-out drills 7 metres @ 9.1 g/t gold & 706 ppm cobalt • MFL • Sep 17, 2024 9:02 AM
PickleJar Announces Integration With OptCulture to Deliver Holistic Fan Experiences at Venue Point of Sale • PKLE • Sep 17, 2024 8:00 AM