I had never read this before..
January 9, 2019
Auscrete Corporation, which has paid $100,000 to the City of Goldendale for space in its industrial park, has been issued an order to cease and desist its filing procedures by the Securities Exchange Commission (SEC), this even before the company issued a press release last month indicating its projected growth.
The SEC legal case, dated Dec. 11, 2018, opens, “The Securities and Exchange Commission (“Commission”) deems it appropriate that cease-and-desist proceedings be, and hereby are, instituted pursuant to Section 21C of the Securities Exchange Act of 1934 (“Exchange Act”), against Auscrete Corporation (“Auscrete,” “Respondent” or the “Company”).
The case took Auscrete to task for improper filings. “These proceedings arise out of the violation of the Regulation S-X requirement that interim financial statements filed as part of a Form 10-Q be reviewed by an independent public accounting firm prior to filing (the ‘Interim Review Requirement’),” the document stated. “On three occasions, Auscrete violated the Interim Review Requirement by filing Forms 10-Q with the Commission that contained financial statements that were not reviewed by an independent public accounting firm.”
The SEC stated that on three occasions in 2014 and 2015, Auscrete filed a quarterly report which included its interim financials statements for those quarters. In each case the statements were not reviewed by an independent public accountant as required by law. Auscrete’s reports did not disclose that the statements had not been independently reviewed, nor did it file amended forms that might have provided the opportunity to submit independently reviewed financial statements.
Moreover, the SEC document stated, “Respondent has submitted a sworn Statement of Financial Condition dated Sept. 7, 2018 and other evidence and has asserted its inability to pay a civil penalty.”
Because of the inappropriate filings and Auscrete’s assertion that it was unable to pay a penalty, the SEC issued the cease-and-desist order.
Yet only days after the SEC document was issued, on Dec. 18, 2018, Auscrete issued a press release stating it had secured new funding, “setting the stage for an exciting first quarter of 2019, with opening of the facility and the taking of firm orders,” the release said. “This enables ASCK to deliver revenue producing goods with earnings projected in the second quarter of 2019.”
The release also indicated that its Goldendale facility would open in the first quarter of this year.
“In the past few weeks, Auscrete Corporation has received unsolicited inquiries requesting bids for the construction of two independent buildings of 10,000 square feet,” the release stated. “The buildings are for franchised retailers who are expecting construction in 2019.”
AI
