Locwolf, thanks for your thoughts. I do have a couple of more thoughts as well. Regardless of how this plays out, I do believe we finally may be at a point where the truth will be exposed. It just can't play out forever.
Since HDC committed once again to having the shareholder meeting on May 27th, the 10-k obviously has to be issued soon. As you know, I challenged them on the likelihood that this meeting wouldn't happen on May 27th due to the delay of the 10-k, and also challenged them on who our public accounting firm is and on what date was it engaged. One business day later, they issued the 8-k signifying this, although public disclosure of the accounting firm engagement was a requirement that should not have been missed by the team at the time of engagement. In retrospect, this was obviously one of the reasons why Quirk and Bear were somewhat confident going in to their complaint process, because they clearly saw that HDC had never disclosed it, and assumed that HDC didn't have a firm. At a minimum, this was sloppy and resource-consuming on HDC's part, and a complete disservice to shareholders. It's hard to believe someone didn't know that an 8-k was warranted after re-engaging Frazier & Deeter.
That aside, this promotion represents one of two things, and we'll find out very soon. On the one hand, it could mean that good news is coming (real soon) because the 8-k says the following: "The Board has taken this action in part due to the loyalty Mr. Delmonte has displayed during his instrumental role in the recent turnaround of Health Discovery Corporation and other partnering initiatives." This is very interesting wording, given that the stock price is at 2 cents, and the company remains non-compliant due to the delayed release of the 10-k. Further, there has been no formal announcement of any partnerships. On the bright side, this could mean that shareholders should be expecting fantastic news, because there has otherwise been no turnaround and there are no partnerships that we are aware of. In other words, if this 8-k is sending a positive signal, then we should start to get real excited about what comes our way within the next week or so.
On the other hand, this announcement could be spelling real trouble for shareholders. If there isn't fantastic news coming our way, then this 8-k (which is signifying a turnaround and partnering initiatives at a time when shareholders are literally crazed), actually means that Mr McGovern is extremely concerned about Mr Delmonte otherwise desiring to bail. If you recall, Mr. McGovern included a reference in his Dec 2019 shareholder letter about not taking on the job if it weren't for Mr Delmonte. This was a rather strange provision in the shareholder letter, but in retrospect is now potentially making sense. If Mr Delmonte knows that HDC really has nothing of value to offer shareholders, and if they have been stringing us along, perhaps he signaled that he has had enough, and Mr McGovern responded accordingly. I certainly hope this is not the case, but the circumstances, the timing, and the almost absurd decision to issue this announcement at a time when the board members have to know that shareholders are desperate for the 10-k and desperate for positive news, appears to suggest that the promotion was done in haste. Otherwise, the board has to expect that shareholders would be wildly frustrated to see this filing, and that it only serves to convey a message that HDC insiders come first, shareholders come second. You can't interpret it any other way.
In closing, I want to reiterate that I desperately want this 8-k to be sending a positive signal. We've all become so accustomed to bad news, that it's almost impossible to envision good news. Yet, we have no choice but to hang in there. If it's not based on sending a positive signal, then shame on the board for having the audacity to issue this announcement while shareholders are starved for news. Either way, we may finally get a chance to find out after all this time about who really represents shareholders. Let's keep our fingers crossed that it is the current HDC team.
Since HDC committed once again to having the shareholder meeting on May 27th, the 10-k obviously has to be issued soon. As you know, I challenged them on the likelihood that this meeting wouldn't happen on May 27th due to the delay of the 10-k, and also challenged them on who our public accounting firm is and on what date was it engaged. One business day later, they issued the 8-k signifying this, although public disclosure of the accounting firm engagement was a requirement that should not have been missed by the team at the time of engagement. In retrospect, this was obviously one of the reasons why Quirk and Bear were somewhat confident going in to their complaint process, because they clearly saw that HDC had never disclosed it, and assumed that HDC didn't have a firm. At a minimum, this was sloppy and resource-consuming on HDC's part, and a complete disservice to shareholders. It's hard to believe someone didn't know that an 8-k was warranted after re-engaging Frazier & Deeter.
That aside, this promotion represents one of two things, and we'll find out very soon. On the one hand, it could mean that good news is coming (real soon) because the 8-k says the following: "The Board has taken this action in part due to the loyalty Mr. Delmonte has displayed during his instrumental role in the recent turnaround of Health Discovery Corporation and other partnering initiatives." This is very interesting wording, given that the stock price is at 2 cents, and the company remains non-compliant due to the delayed release of the 10-k. Further, there has been no formal announcement of any partnerships. On the bright side, this could mean that shareholders should be expecting fantastic news, because there has otherwise been no turnaround and there are no partnerships that we are aware of. In other words, if this 8-k is sending a positive signal, then we should start to get real excited about what comes our way within the next week or so.
On the other hand, this announcement could be spelling real trouble for shareholders. If there isn't fantastic news coming our way, then this 8-k (which is signifying a turnaround and partnering initiatives at a time when shareholders are literally crazed), actually means that Mr McGovern is extremely concerned about Mr Delmonte otherwise desiring to bail. If you recall, Mr. McGovern included a reference in his Dec 2019 shareholder letter about not taking on the job if it weren't for Mr Delmonte. This was a rather strange provision in the shareholder letter, but in retrospect is now potentially making sense. If Mr Delmonte knows that HDC really has nothing of value to offer shareholders, and if they have been stringing us along, perhaps he signaled that he has had enough, and Mr McGovern responded accordingly. I certainly hope this is not the case, but the circumstances, the timing, and the almost absurd decision to issue this announcement at a time when the board members have to know that shareholders are desperate for the 10-k and desperate for positive news, appears to suggest that the promotion was done in haste. Otherwise, the board has to expect that shareholders would be wildly frustrated to see this filing, and that it only serves to convey a message that HDC insiders come first, shareholders come second. You can't interpret it any other way.
In closing, I want to reiterate that I desperately want this 8-k to be sending a positive signal. We've all become so accustomed to bad news, that it's almost impossible to envision good news. Yet, we have no choice but to hang in there. If it's not based on sending a positive signal, then shame on the board for having the audacity to issue this announcement while shareholders are starved for news. Either way, we may finally get a chance to find out after all this time about who really represents shareholders. Let's keep our fingers crossed that it is the current HDC team.
