Any delay in a 10K is NOT a good thing...it means we missed something or we don't know what to do re some aspect/classification. HOWEVER, the company knows what the problem is, they stated so, they further stated it would NOT affect previous dispositions...so at the end of it all, its a push...except the stock found another reason for shorts to take advantage and they have. The short position is increasing to very overexposed.
And the company seems to be in no hurry to address that. Most companies go into hyperdrive to reconcile a K mistake. Is SEQ. in hyperdrive to correct this K? Not sure. They have other activities that they might deem MORE important. Like this Q upcoming.
So the shorts are looking at this and pounding away, 60% short sells two days ago, 33% yesterday...all in short days work you might say...yet the stock is clearly not moving the way the shorts have pointed...matter of fact, its moving slightly North...humm.
While all longs constantly look for a ray of light from the company or the stock movement...and that ray never comes or is quashed quickly, its clear that the company has chosen April as month to note, not tipping their hand about Q1, hinting that the court may or may not decide and coiling...coiling new information, coiling new developments, coiling new progress---ah, there I go, talking like a light-starved long...hoping to see a beam come from the long end of the tunnel, listening for the proverbial "train"....one thing is usually true that this time may not be...so whats the moral, just when things look darkest and just when you think you've seen some light and just when that light goes out---stick around, don't abandon ship, wait for the card to be turned. You just never know until you've been told...at least twice.
Sentiment: Strong Buy
that is ridiculous! The 10K delay is a GOOD thing! It means they have time to get it right instead of being rushed! If they can't get it right now, then they will just have to delay it again. I wouldn't see a problem unless it is delayed more than 2 years. At that point I would be suspicious!
Go away you short!
It seems somewhat obvious to me that the fact they have, over the past several months, been hiring many "Financial/Account" personnel that they recognized months ago that the billing and receivables were getting away from them. This test being barely 16 months on the market, and it becoming so successful so quickly, they lost control of the paperwork. Remember early on they were setting goals of 25,000 tests annually. Obviously, they blew that away. I believe they recognized months ago that they needed to beef up their finance department and have done so. As a result, they are working to clean up their act and put in place a robust system to handle future growth. They need to have a starting point that complies with all of the SEC and NASDQ reporting rules, so they needed this delay to provide that. In my optinion, it's a good business decision and I for one applaud them for recognizing their shortfalls and acting responsibly.
It was not a revenue recognition problem, it was how they classifyied certain expenses. Sure, they have to go back thru the year...but think of this way; you have expenses that you deduct, you tell the IRS they are for utilities but they really were for office supplies...not a huge problem but you still have to correct that line by line...and you can delay the results of that process until the date you decide necessary because you won't pay the IRS anymore or they won't return anything to you...a push.
So there you have it...at least a 4 week delay...no biggie...UNLESS there is something else in the yearly that you don't want to disclose until a certain date OR you are holding off on disclosing that as long as you can...wonder what that could be? Break out in small groups and discuss...
Sentiment: Strong Buy
Just takes a few minutes to read the 8k...
The subject annual report, semi-annual report, transition report on Form 10-K, 20-F, 11-K or Form N-SAR, or portion thereof will be filed on or before the 15th calendar day following the prescribed due date
The original due date was March 18