Hey Badger, IMO, I don’t think the default st
Post# of 2009
Posted On: 05/03/2015 10:53:58 PM
Hey Badger,
IMO, I don’t think the default status and late financials is by choice, it is just the situation right now with limited income and relying on CPNs for operating expenses; they just needed to make a choice. I am sure if they had the funds, they would have both taken care of.
Reading Spiceman’s post I looked into default status vs not publishing filings. Here is what I found:
Per the Nevada state website:
“Q: Why do I need to file a Declaration of Eligibility for Exemption from the State Business License?
A: Since a business license is required for the conduct of business in this State, not filing the Declaration of Eligibility for Exemption may cause your entity to show as default and prevent you from obtaining other licenses, permits, etc. with the State or other agencies.”
Source here: http://nvsos.gov/index.aspx?page=273
So it sounds like you can still operate business in default status until revoked status, you just can not apply for further licenses or permits until the license is out of default. compare the default status vs potential to halt trading on the stock:
Per SEC Bulletin on trading suspensions:
“Why would the SEC suspend trading in a stock?
The SEC may suspend trading in a stock when the Commission is of the opinion that a suspension is
required to protect investors and the public interest. Circumstances that might lead the Commission to
suspend trading include:
• A lack of current, accurate, or adequate information about the company, for example, when a company is not current in its filings of periodic reports;
• Questions about the accuracy of publicly available information, including in company press
• Questions about the accuracy of publicly available information, including in company press releases and reports, about the company’s current operational status, financial condition, or business transactions;
• Questions about trading in the stock, including trading by insiders, potential market manipulation, and the ability to clear and settle transactions in the stock.”
Source here: http://www.sec.gov/investor/alerts/tradingsuspensions.pdf
I am sure this was a tough decision which one to focus on, but due to fund constraints, they had to make that decision which would have less consequences.
As far as the quarterly reports at the auditor, keep in mind, the quarterly reports not filed are the ones that the new auditor would be responsible for because they fall under the time they are the company’s auditors. IMO, they are looking over the reports to see what XNRG does, what deals/products/services/contracts they are in, and evaluate the accounting for anything they might have a question about. Also, this quarterly has more going on with it, such as section 3(a)10 debt settlement, international joint ventures, commodity contracts, and income taxes on Rice Well income just to name a few compared to previous filings. One thing I noticed in Jerry’s recent writing about the auditors, he does not say the quarterly reports are at the auditor’s for audit, but for review.
Again, all my opinion.
IMO, I don’t think the default status and late financials is by choice, it is just the situation right now with limited income and relying on CPNs for operating expenses; they just needed to make a choice. I am sure if they had the funds, they would have both taken care of.
Reading Spiceman’s post I looked into default status vs not publishing filings. Here is what I found:
Per the Nevada state website:
“Q: Why do I need to file a Declaration of Eligibility for Exemption from the State Business License?
A: Since a business license is required for the conduct of business in this State, not filing the Declaration of Eligibility for Exemption may cause your entity to show as default and prevent you from obtaining other licenses, permits, etc. with the State or other agencies.”
Source here: http://nvsos.gov/index.aspx?page=273
So it sounds like you can still operate business in default status until revoked status, you just can not apply for further licenses or permits until the license is out of default. compare the default status vs potential to halt trading on the stock:
Per SEC Bulletin on trading suspensions:
“Why would the SEC suspend trading in a stock?
The SEC may suspend trading in a stock when the Commission is of the opinion that a suspension is
required to protect investors and the public interest. Circumstances that might lead the Commission to
suspend trading include:
• A lack of current, accurate, or adequate information about the company, for example, when a company is not current in its filings of periodic reports;
• Questions about the accuracy of publicly available information, including in company press
• Questions about the accuracy of publicly available information, including in company press releases and reports, about the company’s current operational status, financial condition, or business transactions;
• Questions about trading in the stock, including trading by insiders, potential market manipulation, and the ability to clear and settle transactions in the stock.”
Source here: http://www.sec.gov/investor/alerts/tradingsuspensions.pdf
I am sure this was a tough decision which one to focus on, but due to fund constraints, they had to make that decision which would have less consequences.
As far as the quarterly reports at the auditor, keep in mind, the quarterly reports not filed are the ones that the new auditor would be responsible for because they fall under the time they are the company’s auditors. IMO, they are looking over the reports to see what XNRG does, what deals/products/services/contracts they are in, and evaluate the accounting for anything they might have a question about. Also, this quarterly has more going on with it, such as section 3(a)10 debt settlement, international joint ventures, commodity contracts, and income taxes on Rice Well income just to name a few compared to previous filings. One thing I noticed in Jerry’s recent writing about the auditors, he does not say the quarterly reports are at the auditor’s for audit, but for review.
Again, all my opinion.
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The fault-finder will find faults even in paradise. -Henry David Thoreau