Competent enough to run penny-scams, knowing they can get away without filing, as long as they sell shares.
They'd be incompetent if they actually intended to run a legit company....completely different thing.
Any lawsuits will not go anywhere, as there are no laws broken. Management are simply too incompetent to do math and finish financials. That is not a crime!
You may know a lot about stocks, but the statement about lawsuits is not even remotely accurate. Securities law is a rich field with a hundred different angles from which to approach any publicly-owned company from. I am not saying that it applies here, but companies cannot just stop being a public company with no repercussions. No matter how many times it has been said here - it is not true. Just my informed opinion.