SmartStockAdvisor.com Report: Financials
On our visit with Microphonics, the issues regarding financials were thoroughly discussed. Microphonics is well aware that it has not followed through on its previous intentions to publish financials. Microphonics is, however, committed to avoiding any future delays. They will be taking all necessary steps to comply with all SEC regulations as expeditiously as possible in order to become a fully reporting company. Next week, 1998 and 1st quarter 1999 unaudited financials will be made available publicly. This publication will make available this information to all shareholders at the same time.
On April 16th, Microphonics issued a press release stating financials were being sent to S&P and would be released soon thereafter. The company, we were told, did send their 1998 and 1st Quarter 1999 financials to Standard & Poors, but they were returned as unacceptable needing correction. In the press release of April 29, 1999 issued by Microphonics, it was stated that they had filed registration forms with the SEC. We were told that their first submittal was returned due to errors in the forms. It is obvious to us and Microphonics that this handling of financials and filings is unacceptable. Below are Microphonics' steps to correct this matter.
There is good news going forward. First, as a result of our discussions with the company, Microphonics committed to hiring a major nationally recognized, reputable accounting firm to provide a full audit of 1998 financials and the first two quarters of 1999 and to revamp the company's accounting practices and procedures. This new accounting firm will also be responsible for the preparation of all necessary forms to be submitted to the SEC for fully reporting compliance. Jimmy Gayle, CEO, and Myles Izikoff, VP of Sales and Marketing, are convinced that this step is absolutely necessary. They expect to report the hiring of this firm within a couple of weeks.
Secondly, we were able to review and verify contracts as stated in Microphonics' press releases, and confirm the dollar value of those contracts. We are in the process of building a comprehensive customer list for future publication. Additionally, we verified that there has been no dilution of shares and no increase in the number of shares outstanding (10M outstanding and approximately 4.2M in float.) We can also confirm that 1st quarter 1999 should show a slight profit, as previously announced by Microphonics.
We have suggested, and Microphonics has agreed, that a conference call be conducted after the above has been completed, to address shareholders' questions and clarify the released financials, SEC filings, intentions about NASDAQ listing, and other issues.
This matter of the financials has been the single biggest obstacle to the success of Microphonics in the market. SmartStockAdvisor.com has been helping to remove this impediment and we are confident in Microphonics' resolve to do so.
SmartStockAdvisor.com
619-492-8061
SAFE HARBOR DISCLAIMER:
The matters described herein contain forward-looking statements that are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve a number of risks, uncertainties or other factors beyond the Company's control which could cause actual results to differ materially from historically results, performance or other expectations and from any opinions or statements expressed with respect to future periods.
Disclaimer: SmartStockAdvisor. com is a compensated agent of Microphonics, Inc. as of May 18,1999. SSA has been hired to perform press and investor relations for the company and are being compensated as follows: during the first three months of our contract SSA will receive 3K freely trading shares and 2K restricted shares per month; thereafter SSA will receive 5K restricted shares per month, with possible additional restricted shares on a quarterly basis. The individuals comprising SmartStockAdvisor.com collectively, in their personal accounts, own less than 1% of the outstanding shares of Microphonics.
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