Sure Trace (SSTY)

[johncee]

Catching up on this weeks posts.

I finally got through all the posts and copied most of the ones that I thought were interesting or that deserved comment. Without going into much research at this point, I will try to respond just giving my honest opinions.

One of the most interesting posts was about HC360.com.

“SSTY has 85 on staff. From Chinese HC360 .com” I finally got on the translated version of this site, very interesting. From what I can understand is the JV partners named “the science and technology” has located their labs in the Haidian area which the Chinese capital University and the high-tech courtyard.

I would guess that this is similar to our silicone valley.

the development goal, is take the unique technical product, the technical service and the necessary information data system as the core, the cover status through the construction confirms, guards against false domain and its the main profession and so on recognition, new energy, electronic technology, biology recognition and information track, provides the high new technical product and the technical solution comprehensive service system. With most short-time develops into the domestic famous high new technology provides with the service business, and develops into the company the technical market famous enterprise.
“The science and technology " has the S-DNA element mark information technology the independent intellectual property rights, and within the boundaries applied for the S-DNA element mark information technology patent in China.

" The science and technology " will throw the great capital constructs the Chinese S-DNA element marks the laboratory and the development center, the large-scale information safety control database KMACK system, the intelligent knowledge read production base, the technical product service network system as well as the synthesis technology grinds sends the center, the authentication center and so on.


From the way I interpret this article ssty has 85 employees on staff at the University labs and offices and this will be the hub for everything to do with research and development and also the final implementation of the kmack system and central database for all s-dna tracking in China.

This one article and the website HC360 .com, is something that I will be looking at closely for information as to how the ramp up is proceeding with China.



“Year end for SSTY is 12/31. To have up to date financials I would think they would need at least another 30 days to complete and produce their 10-K. Any thoughts on this anybody? Also wonder who is doing their audited financials? “

On May 22, 2003, the Board of Directors of Sure Trace Security Corporation (the "Corporation") dismissed Michael Johnson & Co., the Company's independent auditors. Michael Johnson & Co. audited the Company's consolidated financial statements for our two most recent fiscal years ended December 31, 2002.
(2) Engagement of New Accountant
On May 22, 2003, the Board of Directors of the Company appointed Grant Thornton LLP as the Company's new independent accountants.

Part of the question is how long will it take them to complete the 10k, my question is how many quarterly and annual reports need to be filed to completely catch up? Here is something. This came right after the hiring of Grant Thornton LLP. Also it came right before the publishing of the code of ethics and the company’s realization that they were being sabotaged by company executives.

Here is another possibility in the July 27th press release when ssty entered into a binding agreement with sensor media, this statement was at the bottom of the press release:
The Company also today announced the hiring of Joseph J. Repko, CPA as its CFO.
Mr. Repko brings many talents to the Company. He founded a full service accounting firm in 1984 with clients in a wide range of industries and services including manufacturing, video production, publishing, banking, financial, medical services, mining, automotive services, nonprofit and government entities. The services provided for these clients include compilation review, audit, tax, MIS consultation, SEC filings, IPO's and foreign operations. It has offices in Springfield, Pennsylvania (a suburb of Philadelphia) and in Jupiter Florida. Mr. Repko will work both out of the Philadelphia headquarters and a Florida location, near the Company's auditors.
Soooooooo is the accounting firm Grant Thornton LLP or is it Joseph J. Repko, or has the company hired an outside accounting firm to do the audited financials.
Notification of inability to timely file Form 10-K 405, 10-K, 10-KSB 405, 10-KSB, 10-KT, or 10-KT405 2004-03-30
These additional notifications of inability to file came right before Michael Cimino came on board as President and Vice Chairman.
Notification of inability to timely file Form 10-Q or 10-QSB 2004-05-17

Notification of inability to timely file Form 10-Q or 10-QSB 2004-11-12

Notification of inability to timely file Form 10-K 405, 10-K, 10-KSB 405, 10-KSB, 10-KT, or 10-KT405 2005-03-31
So the question that I have not answered yet and would like some input on is just how far back do they have to go in their quarterly and annual filings.
Here is Grant Thornton LLP’s website
http://www.grantthornton.com/portal/site/gtcom/

Something that really caught my attention on their website is this article about their China resource center and their experience with Sarbanes-Oxley.
http://www.grantthornton.com/portal/site/gtcom/menuitem.91c078ed5c0ef4ca80cd8710033841ca/?vgnextoid=...
China Resource Center




Customers today demand more for less and are willing to go to the far corners of the earth to get it. Competitors increasingly look to China for low-cost supplies, components and services, and to establish facilities of their own. To succeed in this unfamiliar business environment, companies must learn about their Chinese counterparts and the vastly different competitive landscape in which they operate.
Grant Thornton professionals understand how to help you do business in China. With this in mind, we created The China Vision: Opportunities and Challenges for U.S. Manufacturers, a whitepaper based on research conducted by the Manufacturing Performance Institute (MPI) and IndustryWeek magazine that compares 406 Chinese facilities with ISO 9001 certification for quality against 681 of their U.S. manufacturer counterparts.
In addition to the whitepaper, a corresponding webcast, The China Vision: Opportunities and Challenges for U.S. Businesses, was held on July 26, 2005. Speakers included John Brandt, chief executive officer and founder of MPI, as well as Stephen Chipman, Grant Thornton central region managing partner, Mitch Greenhill, Grant Thornton international tax senior manager and Jim Maurer, Grant Thornton managing partner of the consumer & industrial products industry practice.
To access the recorded Grant Thornton webcast click on the link under more information. The event replay number is 1335134639.
Please see the file below to view a pdf of the webcast slides.

Related Documents

China Vision: Opportunities and Challenges for U.S. Businesses Webcast


Welcome to Grant Thornton's Sarbanes-Oxley and corporate governance resource center. This center aims to provide you with the latest Grant Thornton Thinking on the implementation of the Sarbanes-Oxley Act of 2002, as well as information about how our services can assist your organization in meeting the requirements and sustaining improvements in your internal controls.


COSO releases guidance for smaller public companies in complying with Section 404






Sarbanes-Oxley (SOX) & Corporate Governance
On Oct. 26, 2005, the Committee of Sponsoring Organizations (COSO) released its exposure draft related to the COSO Framework titled, Guidance for Smaller Public Companies Reporting on Internal Control over Financial Reporting. Read as CorporateGovernor, a quarterly Grant Thornton newsletter, highlights this important document and and what it means for small public companies.

What is the value of an internal control deficiencies framework?

Representatives of nine accounting firms have developed a suggested framework for evaluating internal control exceptions and deficiencies in the integrated audit. The framework was designed for use by both issuers and auditors in evaluating exceptions and deficiencies in manual and automated activities-level controls. Learn more about this framework in the Grant Thornton whitepaper Evaluating Internal Control Deficiencies Framework.



Sorry but I just can’t answer a few questions with a few simple answers, I always have to do some research and by doing so, I come up with many more questions, but some good information too. So I’m back and these are only two of the posts in the past week that I am trying to catch up on.