COSN ipo--
zdii.com
...For the six months ended June 30, the company had a net loss of $57 million and $11.32 million in revenue. At least, those were the numbers the company originally stated in its filings, before it became embroiled in discussions with the SEC which questioned its practice of offering cheap pre-IPO stock to customers who agree to sign big deals.
According to an article in Tuesday's Wall Street Journal, six out of eight of CoSine's customers hold stock or warrants to buy stock in the company. In the company's most recent SEC filing, it claims "revenue, net of non-cash charges related to equity issuances," to comply with the SEC, which totals $7.62 million.
CoSine isn't the only company to come under SEC scrutiny for the practice; Tellium Inc., a maker of fibre-optic gear, included a similar adendum in its filing for an IPO last Friday. ONI Systems (Nasdaq: ONIS), another telecom equipment maker, was in discussions with the regulatory body which delayed its June IPO by a week, but didn't result in an amended filing, according to the WSJ article... |
