Replies to post #3616 on Susglobal Energy Corp (SNRG)

[synaphai]

This is the fourth year in row Marc's needed an extension. He needed the full 15 extra days to file in 2021 and 2022 and 14 days last year so he's always cut it close. I guess missing the extended deadline is not surprising because when you push that limit too many times you're bound to go past it eventually. We'll see if it gets filed today.

[synaphai]

To try to answer your question:

In my experience the most common reasons to be this late on an annual filing where the company becomes noncompliant are shoddy work by the accounting company doing the audit, something sketchy found by the auditors that keeps them from signing off on the annual report or simply not having enough money to pay for the audit.

Susglobal used a big, reputable Canadian accounting firm until they resigned in late 2022, maybe because they had problems getting paid. That's what reading between the lines on the 8k announcing the resignation seemed to say to me.

So Marc moved to a Houston accounting firm that has some really bad Google reviews. Maybe this delay is due to the auditor not completing the job, although you'd think that would have been specified in the 10K extension filed a few weeks ago and they did complete last year's 10K.

Not having the money to pay for the audit is obviously the other possible problem. Yearly audits can cost hundreds of thousands of dollars that Marc may not have. It's unclear how much they paid last year but the yearly audit was included in the $900k they paid for accounting and tax services.

Being noncompliant with a 10K filing can cause problems, including potentially not allowing the company to file a prospectus until 12 months after they regain compliance, which could kill the chances of an uplisting if the company ever got that far. An uplisting seems a long ways away at this point but if it did get to that point, a late 10K could stymie it.