Replies to post #6563 on SARS Corp.(fka SARO)

[Jay12]

You are right, my bad. IMO, which is based on engaging many auditors to work over the years we are not going to see anything for a long time.

First, because SARS has not done any statements for a long time they are going to need to get caught up. I know it seems strange since the old assets are gone but that is how it works.
Second, the accounting rules that apply to this kind of transaction are not simple. Goodwill may need tested for impairment, which adds at least three weeks.
Third, They will likely need to present this Proforma showing what were separate companies as if they had been one company. The consolidation gets confusing when you are putting things together that were not actually together.
Fourth, any good auditor is going to want many going-concern clauses in the statements (because SARO NEEDS financing). Only it will be hard for SARO to get financing with such things in the audited statements. Catch 22. Management then has to negotiate these things out of here. It happens all the time, but it will eat up several weeks.

Again IMO, but I have been on the management side that has done this before. Its good news they are moving forward, its bad news they waited so long to start. I wouldn’t be surprised if we see prices stay here or get lower as some investors decided the wait is not worth it.