Item 9A Shows Material Weaknesses
These will need to be corrected if equity investors are going to put the sorely needed cash into IWDM. How do you correct these without equity infusion though? The "cash cow" of io4business can't even support current expense levels, much less the increases correcting these will require. This and the Going Concern tags are two HUGE red flags to anyone putting money into this venture.
Read below for the verbage from the report....
Material Weaknesses Identified
We identified the following deficiencies which together constitute a material weakness in our assessment of the effectiveness of internal control over financial reporting:
· There is a lack of sufficient accounting staff, which results in a lack of segregation of duties necessary for a good system of internal control;
· There is an over-reliance upon independent financial reporting consultants for review of critical accounting areas and disclosures and material non-standard transactions;
· The Company internally performed all aspects of our financial reporting process, but not limited to the underlying accounting records, recording journal entries and responsibility for the preparation of the financial statements. Due to the fact that these duties were performed often times by the same personnel, a lack of review was created over the financial reporting process that might result in a failure to detect errors in spreadsheets, calculations, or assumptions used to compile the financial statements and related disclosures as filed with the SEC. These control deficiencies could result in a material misstatement to our interim or annual financial statements that would not be prevented or detected;
· The Company does not have a sufficient number of independent directors for our board and audit committee. We currently have no independent director on the board, which is comprised of two directors, and we do not have an audit committee.
