<<Do you have knowledge of what some of the other requirements will be for ARET to remain a listed company. I would think there would be more requirements in addition to filing financials. There must also be criteria regarding the worth of the company, accounting methods, time frames for reporting, etc.>>
Currently, to my knowledge, the NASD has only "proposed" that they may require OTC-BB companies in the near future to file independently audited financials to maintain their listings. As far as things such as capitalization reqs, #mm's, #shareholders. These things are requirements for Nasdaq listing. I haven't heard any other requirements discussed for the BB. As far as accounting methods etc. They will have to comply with the same GAAP (Generally Accepted Accounting Principles) that all other independently audited companies must comply with. FYI, GAAP are the accounting industry rules which govern things such as how different types of assets are amortized, how inventory is valued and so on.
Does seem like the financials are taking a little while, doesn't it. It doesn't concern me much at this point yet. There is no rush to get them done. It would of course be nice to have for us investors. But the NASD won't be kicking companies off the BB without giving them sufficient time to comply. I don't think the NASD would give any less than 1 year to comply. JMHO.
I am a CPA, but have never practiced as such (I hate accounting, yuk!). (Before you ask, I'm a Human Resource software consultant and work with payroll, benefit, personnel systems so it isn't a total waste). I mention that because I know enough to know that pulling together ARET's financials may be complicated by two things. One -- Recently coming out of bankruptcy. This probably throws several kinks into an otherwise standard audit and compilation that your local CPA firm doesn't deal with so often. Two -- Not filing for the past year or two. I forget the last time they filed but when you let a good deal of time lapse it becomes exponentially more difficult to accurately reconstruct past events. The first audit a CPA firm does is very difficult. Substantial audits are academic, building from the last one. Now there may be a lot of issues deciding what accounting methods to use in different situations. Everything is not always cut and dry.
---For Example. GAAP may say to amortize (depreciate) office computer equipment over a 5 year period. Maybe the company bought used 486's cheap instead of new P-333's. The company could argues that the 486's they have should be written down over 2 year instead. This is a very simplistic example. But there are potentially hundreds of such points where you could debate with the CPA firm. The CPA firm may not know your type of business well, so you may need to explain to them why some industry-related piece of equipment (or whatever) needs special treatment.
Once all such accounting treatments are established and the past couple years are put on paper, future filings will be a piece of cake. So I wouldn't worry about that.
The filing of financials doesn't concern me at present. I know they are working on them. More concerned about getting some contracts.
Whew...This is turning into a Bob Z. length post...LOL.. Bob, you heard any thing about when word might be given on the Flour Daniels deal?
mike |
