"SEC Accounting Rules" are just GAAP. JB's actions

"SEC Accounting Rules" are just GAAP. JB's actions constitute fraud regardless of details. He restated the financial statements within months of the PIPE closing, there fore he knew of the problem whilst negotiating the PIPE. There is no getting arouind it. Accounting is accouintingm, which means that every line affects every opther, no matter what it is. Here we have a 10 M asset which dwarfs everything else. It does not matter if it is, or whether it is immediately useful to investors ot not. It is a Current Asset, which means it is convertible to cash within a year. He misled those investors.

There is a fine line between a CEO promoting the stock price and company for the benefit of investors and lying. Back in the dot-com days they used to call it "charisma". After the crash it became known as "bullshit".