As usual a very interesing and pertinent discussion.
With all due respect , if you feel $50,000 is not the minimum to maintain a reporting company, I would be quite curious what figure you would estimate.Each 10q requires reviewed financial statements, XBRL, and edgar work The XBRL alone can cost $1,000 to $1,500 per 10q. The accountants can charge $2,500 to $5,000 per quarterly. Then some edgar costs and then lawyer review, etc. The 10k of course requires an audit,definitely legal review,XBRL, and edgar work. Then on top of all that, if a reporting company,then 8k's, form 4's, etc etc. The second issue is painting all companies that de-register as not legimate doesnt address simple fact some companies cant raise the money in the current market especially if a low priced stock. Placing low priced stock with a broker is not very easy these days so that alone restricts financing options.So if they cant raise money in a private placement, cant afford an S1, why would it be illegitamate to de- register ?
I do agree there are less options available to a non-reporting company, and for the long term a lot tougher for a non reporting company to succeed these days.
As far as CGFI concerned I would guess they are already in default of their convertible debt terms, and it would seem they have tapped out all the convertible debt they could get. Just my opinion, but they simply wont have the money to stay reporting.
