Actually, i am sorry to disagree. The accountants did not review or pass opinion on any of the numbers in the compiled report. They merely assembled into financial statement format numbers given to them by Herzog. The fact that nothing was provided in respect of prior revenues/profits/assets was a choice by Herzog -- and obviously reflects that the prior reports were complete baloney.
Yes the previous reports were intentional misrepresentations by management and in my opinion represents criminal securities fraud. I have no problem casting stones at these grifters.
The report to taxing authorities would be the options/warrants granted to families of Herzog/Parekh at $0.0001 strike price, representing at the time of issuance over $2 million of taxable income to the receiver. The receiver of the 62 million shares last year would also have taxable income.
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