Let's clear up the accounting opinion issue. For quarterly reports (the 10-Qs), there is no audit performed. It is simply a review. For the Annual Reports (10-Ks), an audit is performed and the accountants either sign off or take exception to certain management positions. Like it or not, those are the rules. As far as the appraisal, get a copy of the report from the company and make your own conclusions. From my experience in film and music library transactions and valuations, the value that is present will always surprise the layman. Cash flows and royalties from these properties are usually surprisingly large.
A couple of other issues that I have noticed on the board over the past few weeks that should be cleared up. First, there is no effective registration statement for shares issued to creditors so I sincerely doubt there have been any sales of shares by them. Second, there are pretty specific rules regarding share repurchases, especially regarding the percentages of average daily volume purchased daily. No purchases are made by the company during the last 30 minutes of trading.
