Replies to post #24258 on MGT Capital Investments Inc. (MGTI)

[penknee]

No, I believe what she is saying is that complying with 404(b) has caused the 10k to be delayed.

Here's what 404(b) is:


"Section 404(a) requires management to assess the effectiveness of internal controls over financial reporting on an annual basis. Section 404(b) adds an independent audit of internal controls requirement. The emphasis on internal controls was considered important in the post-Enron\WorldCom world because weaknesses in internal controls create opportunities for intentional accounting manipulations and unintentional accounting estimation and reporting errors."

If they are having trouble complying with this I would not be too surprised. Also you have to be an accelerated filer to trigger 404(b). There was some confusion from MGT about whether they were an accelerated filer.