SEC filing responsibility
HQNT and all affiliated parties are still required to file with the SEC all documents. This most importantly includes financial statements, which at this point, who the hell knows when they will be available. Cohn must also still file with the SEC before selling any shares privately or on the open market. However, just because he is required to does not guarantee that he will. The reason they must still file with the SEC is that they have undoubtedly not dropped below 500 shareholders. Any public company that was required to file at any point in time is still required to file if they exceed $10 million in assets or 500 shareholders.
I attended the annual meeting and was assured by Cohn that the financials would be forthcoming. I now seriously doubt the credibility of Cohn. A)As an accountant, I can tell you that a company with 4 million in revenue does not require more than a week to compile and audit financials. B)Whether mailicious or not, Cohn is obviously hiding something. An accounting firm does not generally drop a client unless extreme circumstance develops. C)The civil cases HQNT and Cohn are involved in are not only confusing, but also extremely questionable as to Cohn's actions.
HQNT distributes dividends because under Virginia law, it is required to if there is a profit. I'm guessing the reason that the dividend is in stock is because a)Cohn knows there is not any cash because the earnings are fake, or b)he needs the cash from earnings for acquisitions; not to mention that it only dilutes earnings rather than actually distribute net income.
Did anyone catch that Cohn was paid 2,000,000 shares this year?
At todays market price, that is still over a mil. Not a bad payday.
If anyone is currently a shareholder and interested in pursuing legal action against HQNT/Cohn, if only to obtain information on the financials of the company or even status that an accounting firm is auditing the financials, please contact me at jblosenski@loyola.edu
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