Evidently, some have not read the filings on Edgar. They do not have $23 million in assets, materially misstated that exceeded the threshold of what is material vs. immaterial.
Next comes, was it intent?
That is why they filed the 8K. So people do not rely upon inaccurate financials by the registrants. Intent appears more likely as the inaccurate financial data continues to be disseminated for promotional purposes.
Secondly, comes the fact that they own $10 million in current debt, and only have $1 million in current assets.
$200,000 is a desperate action.
Then we get into the change of auditors, the new assets appeared after the audit, and before the change in auditors.
Once the new auditor found the discrepancy in reporting on what is their portion of the period and the comparable period, the new auditor now is responsible to review the prior years audit as the comparable period will now be their own. Clearly, the new auditors are not comfortable with what has been presented.
Then, the covenants in the notes? There are too many notes to dig into, but how many of them have covenants in which the registrants are to abide by such as revenue or assets as to not default.
So did they misstate the financials in order to not default on the notes? If they did, you can prove intent, and now Bob is in deep poo.
Either way, they defaulted now. What is next. I guess I have to read up on all the notes.