Item 9.01
Financial Statements and Exhibits
Current status of financial statement filings
As reported in previous NT 10-Q and NT 10-K filings, the Company has been unable to make timely SEC reports in the past due to uncertainty surrounding litigation and a claim of acting in bad faith against prior Company management. The most recent SEC filing was for the period ended September 2017. Upon bankruptcy counsel’s recommendation to pursue a Chapter 11 bankruptcy filing, the prior Board of Directors deemed it inappropriate to bring such SEC filings current.
Current management received financial and operational information from prior management in late April 2019. Management is beginning the process assessing the Company’s records, financial condition, and the extent of reporting required of the Company by the SEC. Based on this assessment, management will make a determination of the quantity, frequency and independent accountant involvement in reporting that will provide the greatest benefit to shareholders while not subjecting the Company to unnecessary reporting expenses.
The Company incurred approximately $1,500,000 in legal and professional costs between November 2018 and March 2019, initiating, defending, and settling the bankruptcy action. These expenditures consumed the majority of the Company’s pre-bankruptcy liquidity. However, based on currently available information, management believes that the company will still be able to maintain sufficient current cash flow to sustain normal operations.
Forward Looking Statement Disclaimer
Except for statements of historical fact, information contained herein constitutes forward-looking statements and includes, but is not limited to, the (i) projected financial performance of the Company; (ii) completion of, and the use of proceeds from, the sale of the shares being offered hereunder; (iii) the expected development of the Company’s business, projects and joint ventures; (iv) execution of the Company’s vision and growth strategy, including with respect to future M&A activity and global growth; (v) sources and availability of third-party financing for the Company’s projects; (vi) completion of the Company’s projects that are currently underway, in development or otherwise under consideration; (vi) renewal of the Company’s current customer, supplier and other material agreements; and (vii) future liquidity, working capital, and capital requirements. Forward-looking statements are provided to allow potential investors the opportunity to understand management’s beliefs and opinions in respect of the future so that they may use such beliefs and opinions as one factor in evaluating an investment.
These statements are not guarantees of future performance and undue reliance should not be placed on them. Such forward-looking statements necessarily involve known and unknown risks and uncertainties, which may cause actual performance and financial results in future periods to differ materially from any projections of future performance or result expressed or implied by such forward-looking statements.
Although forward-looking statements contained in this 8-K are based upon what management of the Company believes are reasonable assumptions, there can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. The Company undertakes no obligation to update forward-looking statements if circumstances or management’s estimates or opinions should change except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking statements.
Exhibits
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Exhibit
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Description
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None
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