I'm not surprised. lol If their predecessors weren't a show stopper, their own financials would be. They really need to hire a competent CPA. To shed all this old baggage, they'll probably need to set up a new company and sell this company's assets to the new one. Then, they can consider r/m'ing the new company into a clean public shell.
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"We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful."
-- Warren Buffett