Replies to post #113562 on Amfil Technologies Inc (FUNN)

[Felo31]

From the source:

“Finally, the audit itself is complete! From the engagement to today the entire exercise was examining our transactions over the past three years, deposits, expenses, payables, receivables, contracts, inventory, you name it.

*We thought we got close to completing this aspect many times, but sometimes certain explanations or information will cause additional testing and this is what took additional time. It was all a normal part of an audit process, especially going back so many years.*

No one particular item was a cause of concern or created an overall holdup, there were just a lot of items and sometimes in providing support for items it branches off and creates additional testing. This process I am pleased to say is now completed.

For those not familiar with public company audits, here is what happens next.

Audit work is completed, auditors send the company a list of adjustments they want to see made. We have received this list of adjustments, our accountant has begun working on them and will have them made and sent back to the auditors tomorrow.

Audit update: This weekend we prepared the adjustments and will be submitting the updated 10-K with the requested revisions on Monday for final approval. There may be some minor back-and-forth with the auditors this week to get it ready for final submission. Stay tuned!”

This is the best technical explanation we have been given thus far, but the second one is the most important to us as investors. I am going to quote it again:

*We thought we got close to completing this aspect many times, but sometimes certain explanations or information will cause additional testing and this is what took additional time. It was all a normal part of an audit process, especially going back so many years.*


This explains the delays and the “false expectations”. We should also bear this in mind for the future. While Roger certainly seems to think that a breakthrough has been made, this has happened before.

I’m not accusing him of anything, nor am I suggesting anything. In the past, he simply thought that the audit was a done deal, only for the auditors to tell him that more info was needed.

Now he once again believes that things are about done. For him to believe that means that he has provided the auditors with all the information that they requested. Now, it’s basically up to them to press “submit”.

When will that happen? Could be today, could be tomorrow, could be a week from now. He (Roger) seems to believe that it should be done any day now.