For public companies, those with fiscal quarters ending 3/31/11, the due date for their 10Q filing is fast approaching. But for many Chinese reverse mergers, it seems to be so very hard to file even unaudited results on time. Some may remember that the beginning of the end for James T. Crane’s Subaye (SBAY) was the failure to file their 10Q in February 2011. So, which fine examples of
good great governance and pristine accounting have announced their most recent 10Qs will be late?
Our Quarterly Report on Form 10-Q could not be filed within the required time because there was a delay in completing the adjustments necessary to close the books for the quarter.
The report of Gulf Resources, Inc. (the “Company”) on Form 10-Q for the fiscal quarter ended March 31, 2011 could not be filed within the prescribed time period due to the fact that the Company was unable to finalize its audited financial results as well as the disclosure requirements of Form 10-Q without unreasonable expense or effort. As a result, the Company could not solicit and obtain the necessary review of the Form 10-Q and signatures thereto in a timely fashion prior to the due date of the report.
Yet, somehow the team at GFRE did manage to find the time to file a bizarre 8K this morning, and corresponding press release entitled “Gulf Resources Provides Final Response to Allegation” which is not much of a response, and likely not too final, either.
How about China Education Alliance (CEU)? They claim to have “encountered a delay in assembling the information, in particular its financial statements for the quarter ended March 31, 2011”
Ping Luo favorite China Automotive (CAAS) gave the most detail out of any of these reverse merger wonders, stating:
The Company undertook a review to determine the total amount of the errors and the accounting periods in which the errors occurred. The Company’s review was overseen by the audit committee of the board of directors of the Company (the “Audit Committee”). The Audit Committee concluded on March 12, 2011 that the Company’s previously issued audited consolidated financial statements as of and for the fiscal year ended December 31, 2009 and unaudited interim consolidated financial statements as of and for the quarterly periods ended March 31, June 30 and September 30, 2010 should no longer be relied upon because of these errors in the financial statements. The Company’s board of directors agreed with the Audit Committee’s conclusions. The Company intends to restate these financial statements. Because of the nature and timing of the review, the Company is unable to file its Quarterly Report on Form 10-Q for the three-month period ended March 31, 2011 with the SEC on May 10, 2011, the prescribed due date.
And there is also former Gene Michael Bennett company China Fire and Security (CFSG), which is audited by the sharp minds at Frazer Frost. Frazer are the crack auditors behind SCOK, HRBN, RINO, CVVT and many more, see here and here. CFSG gave this pathetic excuse in their NT10Q filing:
The compilation, dissemination and review of the information required to properly be presented in Form 10-Q has imposed time constraints on the Company that have rendered timely filing of the Form 10-Q impracticable without undue hardship and expense to the Company.
Yes, even though CFSG‘s Brian Lin made, according to Bloomberg, over $725,000.00 last year, those pesky time constraints that come with being an executive at CFSG are just too much this month.