Alloy Steel Inc. (fka AYSI)

[MikeDDKing]

There is one thing that is odd about this PR. They state that one of their issues is compliance with Sarbanes-Oxley and in particular they state problems with auditor attestation of internal controls over financial reporting.

Here is the relevant text from the PR: "That beginning with fiscal year 2011, Alloy would incur significant additional costs to comply with Sarbanes-Oxley's provisions governing internal control over financial reporting. In particular, Alloy's auditors would be required to attest to management's assessment of Alloy's internal controls, causing a significant addition to Alloy's internal audit personnel and process, increase in audit fee expense and increased legal expense. While Alloy's management is committed to deploying robust internal controls over financial reporting, the expected benefits of Sarbanes-Oxley compliance may not justify the increased expense given Alloy's current level of operations."

Unless I am missing something, there is something very wrong with this claim. My understanding is that they are exempt! Companies that have a market capitalization of less than $75M were declared exempt earlier this year.

http://www.bkd.com/industry/Financial_Services/Insights/2010/2010-07alertsFS-1.htm