Verus International Inc (VRUS)

[JOHNNY-VEGAS]

THE SUBJECT HERE IS AS TO WHY MHM RESIGNED
While the details are typically hidden, there are red flags in financial statements that point to the use of manipulating methods.

A. Unrecorded stock-based compensation. '' GAAP, stock based compensation (SBC) is recognized as a non-cash expense on the income statement''. warning sign for earnings manipulation.



B .Classification of equity instruments (including conversion features, warrants, and stock compensation warrants) subsequent to the Company having an
INSUFFICIENT NUMBER OF AUTHORIZED SHARES to settle certain equity classified instruments.
Cross the line into outright corporate fraud.


C.Although MHM did not complete its audit prior to the Effective Date, MHM believes the ERRORS ARE MATERIAL TO THE PRIOR PERIOD FINANCIAL STATEMENTS, including the annual and interim periods affected, and therefore, should be corrected by restating the financial statements previously filed (e.g., via a Form 10-K/A and Form 10-Q/A). basic warning signs of falsified statements.definitely cooking the books.

Additionally, the Company and MHM had certain UNRESOLVED discussions on the sufficiency of documentation necessary TO SUPPORT AMOUNTS RECORDED IN THE CURRENT PERIOD FINANCIAL STATEMENTS.
definitely cooking the books.