World Surveillance Group Inc (fka WSGI)

[coastiretired]

Financials. . .

"All I want is a currently filed and fit SEC compliant set of financials (good bad or indifferent..reflecting and correcting past managements errs)"

The new CEO stated in April that Globetel is committed to getting the financials up to date and that this is one of their highest priorities.

He announced in November that the financials would be delayed while its audit committee and new CFO conducts a comprehensive review of the Company's accounting policies.

But in March, the CFO and audit committee members left the company. The company no longer has any independent directors nor do they have a designated "financial expert" to serve on an audit committee. They no longer have any internal controls over their financial reporting.

1. One of the first things the new management did when the audit committee was dissolved was to get rid of the external auditor that was approved by the "former" audit committee. The K brothers then appointed a firm of their own choosing.
2. The company has been without a CFO or audit committee for three months now. That's three months when getting their financials up to date was one of their "highest priorities."
3. The SEC bars national securities exchanges from listing the security of an issuer that doesn't meet audit committee requirements.
4. How is a "comprehesive review" of company's financial reporting policies being conducted by the CFO and audit committee when they no longer exist? That was their excuse to the SEC for their filing delay.
5. The CFO is usually the secretary of an audit committee. According to the SEC, the audit committee is the "shareholder's representative" in the financial reporting process. If the release of financials is imminent as Miguella states, who will sign off on those financials and who will be reviewing them as a "shareholder representative" prior to their release?
6. How happy will the SEC be when a company -- which is already under scrutiny with their financial reporting -- gets rid of all of their internal reporting controls prior to reporting and correcting their financials since 2003?

Check out the Globetel Audit Committee Charter to see what currently isn't being done at Globetel in regards to releasing their overdue financials.
http://media.corporate-ir.net/media_files/IROL/67/67726/corpgov/AuditCommitteeCharter_0606.pdf

The Board of Directors, currently consisting of no outside directors, has determined the committee system inoperative until such time as the Board is repopulated with independent directors sufficient to staff the various committees.

-from Globetel website