On4 Communications Inc (ONCI)

[CashMoneyCarl]

However the CEO did give a reason as to why the Audit could not be completed on time, it uncovered an old debt in DE that has to be cleared up and is being worked out legaly now.

I am a little mixed on this. I do not know the details because I have not bothered to dig, but lets play this game:

What the CEO says is true and the debt is preventing the audit. The debt must be a substantial size because he said they are trying to negotiate the debt down to something that they can actually pay. Large debts for a small company (this is a micro cap after all) is not good. They need to concentrate and pay this debt so that they can achieve their "good standing" status and perform the audit but that means no profits until the debt is settled.

On the other hand, I agree with those that say the debt is not standing in the way of the audit. The two -should not- have anything to do with each other. An audit will include a line item something to the extent of "Misc Debt that we owe Deleware" and have the amount listed, just like it would for any other debt, or revenue, or anything else.

I would love for any corporate accountant type to chime in and let us know which is the case here.. anyone?