According to Eric at SHM they need only two years of audited financials to uplist. But the clarity of the Target status when they merged may affect moving up also. Maybe that’s what you are referring to? I would think clearing that up, while possibly a big job, is not the equivalent of needing 2008 audited financials, although I don’t know for sure. But it certainly makes sense for them not to do 2008 if they don't have to.
From the SHM (see post #64495)
SHAREHOLDERS’ MEETING
Probably about minute 50:
ERIC. And I think it’s important for everyone to note that we see the audit as a critical step to becoming fully reporting, so that we have additional opportunities for the company. There’s been a tremendous amount of discussion about the benefits of moving to a higher exchange. And that certainly is a door that opens for us as soon as we get those audits done. And, you know, we are a very small company with staff right now. As Fred pointed out, we do intend to add some staff on in the first quarter that will help free up Fred and I to concentrate more on managerial things and maybe less on day-to-day tasks that would involve the fully-reporting aspects of running a public company. But we’re at the final – I mean the library valuation was something that was the last huge hurdle and it was a very difficult task because of the changing marketplace for Blu-ray and Video on Demand and the lack of a general history within the industry to base projection numbers on those particular formats. So it was a challenge and it took a lot longer than we thought.
Now, when we talked last summer about having an audit, we were talking about a totally different audit than what we are doing now. We were talking about the prospect of taking certain elements of the company, certain assets, and that particular venture was the 2010 assets, and rolling them into an existing Bulletin Board company. And under that scenario all we would have needed to do was an audit of those particular items. As we got further into the discussions with that venture we realized it wasn’t to the benefit of the company and to the shareholders so we decided not to do that. So then we said, “OK, let’s take that hat off and let’s go back to not spinning off assets to another entity but just becoming fully-reporting, and what do we need to do.” And you need to have two years of audited financials, and so we started with 2008, 2009, had a stale library valuation, and no basis to develop the Target side, You know, it’s one thing to say it’s a zero basis company, but you still have to have something to back up for an auditor. And now we have 2010, so we now have potentially three years of audit. But Hogan & Taylor is going to concentrate on 2008/2009.
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About minute 1:27.30
Q. From a shareholders perspective, I already understand that it may be as soon as a couple of weeks to get a blessing from Hogan & Taylor on the financials ______ approved for audit. That will bring us up to current reporting on the Pinksheets. Other than that, are we looking forward to at least maybe moving up to the Bulletin Board somewhere in the near future, maybe in this first quarter?
ERIC. The question is the timing of the audit and what the company’s plans are for taking steps to move to a different exchange. Without a doubt, the day after we have Hogan & Taylor’s final audit approval, we’re going to report those to the Pinksheets and file them with the SEC. We have engaged an attorney who’s helping us with our registration statement. There is a possibility that we will be able to quickly proceed with that, but there’s also a possibility, and this is a concern of ours, the history of Target Development Group may result in a lot of SEC questions because it passed through several different entities before they joined us. And we hope we don’t get beat to death with footnotes and questions from the SEC. We’re hoping that the full audit and the clean and transparent way we’re running the company now will carry some weight and that we’ll be able to have that as an option. Fred and I want that. We want the company to become fully reporting. We want to file the registration statement so that we can move up. It’s not up to us to move us up though, but it’s up to us to take the steps that would qualify us.
