You cannot just audit one quarter, unless you have only been in business for that period.
You need to have a basis to start your audit to test the numbers. If we are auditing MG, with the consolidation, you are still going to have to audit 3 years back of the balance sheet of SK3 and two years of Income and cash flow. The balance sheet needs to reconcile a starting point for the statement of shareholder equity going into the income and the cash flow into the following year.
There is no way to audit a quarter without auditing how you got there to ensure the starting point is accurate.
In the case of MG, just because it is a new company, there is no way to reconcile the share structure without auditing SK3.
And yes, if they get around to filing an S-1 after Q2 and before the next fiscal year, they will have to audit the Q that it outside the 135 days or the financials will be stale.
MG/Sk3 is not going to have their cake and eat it too. MG cannot claim to be a new issuer with only 2 quarters under its belt, and will still have to have financials that have not gone stale. Otherwise the registration cannot be relied upon for the underlying securities to be resold.
This is why I keep saying, why did they not just form MG like they did. Sell a few shares using 506 Reg D, and then audit inception, basically two quarters, and register using S-1?
The S-1 would be published already, and the cost would be less than buying a stinkie pinkie. And now the cost of the audit with be 5 times as much and take 5 times as long, even if they can reconcile where 270 million shares went and what exemption a non registered shell used to free them up and resell them in the public markets.
That is why I believe, someone is really ignorant, or scamming.
And neither of the two are good.
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