'Morning Jim,
Before I get into a chat I had with Tony Johns, CEO,
about the 8K filing and other matters, here is URL for the 8K
and the lead paragraph in the 8K (emphasis mine):
Zelenkofske Axelrod's report on the financial statements of the Company
for either of the past two fiscal years ending March 31, 1998, contained no
adverse opinion nor disclaimer of opinion, nor was the report modified as to
uncertainty, audit scope or accounting principles. There were no disagreements
between the Company and Zelenkofske Axelrod during the two most recent fiscal
years, nor during the subsequent interim period through March 17, 1999, whether
or not resolved, on any matter of accounting principles or practices, financial
statement disclosure or auditing scope or procedure, which, if not resolved to
Zelenkofske Axelrod's satisfaction, would have caused it to make reference to
the subject matter of the disagreement(s) in connection with its report.
~~~~~~~~~~~~~~~~~~
In short, it was an oddity. The accountants, Zelenkofske Axelrod (ZA) were not, by accountanting rules and practices, permitted to sign off on on the CTIG's UK division books when the UK division revenues had
become larger than the holding company's revenues. Normally
the holding company has more revenues.
CTIG is in the process of making a decision on a large
accounting firm who will be able to handle the entire corporation's
books and do them timely. Johns pointed out that it was
not coincidental they are making this change at the
same time they had just brought on a new CFO.
("fluent in German" he said significantly, as did the press release) More on that in later post.
Hope this clears up the question.
-Madly |
