NuTech Energy Resources Inc. (NERG)

[rstockguy]

I don't think that moving to a "smaller" facility is a reportable event but regardless, this company quit reporting some time ago, as most companies that are in the process of failing do.

The last filing was their disclosure that their auditors had quit. Seems Tom Crom & Co didn't want to have the acquired company audited as required. NOTE: An audit is required regardless if they just acquire all the assets of the company or the corporation itself.

Here is what the auditors said

We did not review the Company's interim financial statements for the quarters ending November 30, 2010 and January 31,2011, although we were engaged to review the quarter ending November 30, 2010. At the time of our resignation, we had requested from the Company its analysis supporting management's assertions that it was not required to provide audited financial statements of its acquisition target and had not received its responses.

http://www.sec.gov/Archives/edgar/data/1432994/000106299311002510/exhibit16-1.htm

The real problem is this. With that big (illegal) spam email, this company certainly has more than 300 shareholders so they are required to file disclosure documents. If they don't bring them current, in time, this stock will have their registration revoked and that will be that. So they are in quite a box.

They probably don't have the money for an audit either and for some reason they don't want the private company they acquired from themselves audited (what are they hiding anyway?) so it seems as if they are in trouble either way.

Either they have to spend a ton of cash and get that old corporation audited (if it can be) and potentially reveal some things they would rather keep under wraps and on the other hand, they keep going as they are and the company reverts back to being a private corp with no publicly tradable stock.

Looks like a lose - lose situation to me but then what do you expect from a loser like Tom Crom and his co-hort Larry Lorenz? I have yet to find any evidence of them succeeding at anything. If anyone has found such a thing, I wish they would post it here.

From what I can see, this is just the latest fiasco and an obvious waste of what appears to be a very good technology.