I'm not an accountant or SEC lawyer, but for 15 years I've watched other small cap stocks try to attain up-listing, and most of the time it ends in disappointment. I speak from experience, painfully so. The SEC holds all the cards.
They have to redo their 10k's going back several years. It will take time. Maybe they will expedite it, but it will take some time regardless. The people saying this will uplist to Nasdaq next week are crazy. But vo2max is correct, it doesn't change the outlook for the company. It's just an indication that the rumour mill on this thing is pumping fast and hard.
Yes, I read his article and I think he is mistaken. He didn't even address the lapse in financial reporting. Whether he even knows about it, or he's just blowing it off, I can't say. But my point is that an uplisting isn't coming anytime soon. Yes, it may come down the road. But hyping the expectation on this message board and Seeking Akpha isn't doing anybody any favors.
So you're saying we can forget about a Nasdaq listing. Okay, thanks for confirming this. Just so everybody knows, all this talk around here about a Nasdaq uplisting is false rumour and hype to pump up the stock and steal your money. These message boards are way too dangerous for people who don't do their homework. The euphoria in this thing is out of control. When the stock pulls back 20%, you can bet that 2/3 of these people will be gone and posting on the next hot money stock. Too funny.
FYI, I bought a small starter position on Friday before digging deeper. I usually don't invest in companies where management declares their financial history is erroneous and worthless. Lol! But you're right, Intel did buy themselves a lottery ticket so I suppose it's worth some chump change on a lark.
Here is the actual quote from the company's 10Q, pg.21:
"Due to the ACTUAL and potential errors on financial statement balances and disclosures, management has concluded that these deficiencies in internal controls over the period-end financial close and reporting processes constituted a material weakness in internal control over financial reporting."
This is not good.
10 Q, pg.22
Deficiencies in Segregation of Duties
There is limited segregation of duties which could result in a material misstatement in our financial statements. Given our staff levels, certain duties within the accounting and finance department cannot be properly segregated. However, we believe that none of these segregation of duty deficiencies resulted in material misstatement in the financial statements as we rely on certain compensating controls, including periodic substantive review of the financial statements by the Chief Executive Officer and Chief Financial Officer.
Deficiencies in Monitoring of Subsidiaries
We have not designed adequate monitoring controls related to our European subsidiary or Japanese branch sales office, such that we can be assured that a material misstatement of financial results would be prevented or detected on a timely basis.
Weaknesses in Inventory Controls
We have identified weaknesses in our inventory controls as follows:
· Documented processes and controls are insufficient and are not working effectively for several key inventory processes including inventory adjustments and reserves for excess, defective and obsolete inventory.
· Inventory valuation processes and controls are not sufficiently documented and are not working effectively including costs to be expensed versus inventoried and maintenance of adequate supporting documentation for current unit costs and bill of materials.
Deficiencies in Internal Controls Procedures and Risk Assessment Program
10 Q, pg. 21
Deficiencies in Financial Reporting and Close Process
Our current financial close process does not ensure accurate financial reporting on a timely basis. We also did not maintain effective controls over the period-end financial close and reporting processes in relation to the consolidation of our subsidiary’s financial information. The specific deficiencies contributing to this material weakness related to (a) inadequate policies and procedures, (b) ineffective procedures and controls over journal entries, accruals and reserves, (c) inadequate controls and procedures related to the timely preparation and review of account reconciliations, (d) inadequate segregation of duties, (e) inadequate controls over cut-off procedures, (f) deficiencies in end-user computing controls of critical spreadsheets, and (g) an insufficient complement of personnel with appropriate levels of knowledge and experience. Due to the actual and potential errors on financial statement balances and disclosures, management has concluded that these deficiencies in internal controls over the period-end financial close and reporting processes constituted a material weakness in internal control over financial reporting. We intend to establish and document financial close processes and procedures including responsibilities and due dates. We also intend to commence utilizing a closing checklist to ensure all procedures are performed and appropriate reviews are completed on a timely basis for each quarter and year-end period. Additionally, we intend to implement controls over critical spreadsheets, including change control, input control, access and data security and appropriate review procedures. Further, we intend to seek additional resources with strong accounting and reporting experience when financial resources are available. We cannot give any assurance as to whether or when we will be able to implement those changes.
Deficiencies in Segregation of Duties (continued)
Nobody cares what Gomes does anymore. He is a has been and a laughing stock even among his own subscribers.
Carter Worth from CNBC fast money show is awful. I monitored his trades for a while and his track record is terrible. I would do the opposite of anything he says. His price target for FB is $65 and it's based on the chart, not fundamentals. We'll see if he's right.
Dude, what is your problem? You don't have to call everyove a troll just for posing a reality check. You come off worse for sounding like a pumper who is trying to censor discussion. Nobody should invest in stocks if they insist on wearing blinders.
Thanks Cane, I'm looking forward to the investor presentation on Monday. I bought some today at $5.20. I think the stock will come down more to consolidate the recent gains, but I wanted to get feet wet. I like the Intel deal, I think it was a good score by management.
Interesting article. The increasing competition is one concern to think about. Having Intel by your side helps in that department. The other concern is how long it takes for consumer market acceptance to reach a tipping point. Right now it's not there yet. It could take several years. And in the meantime, VUZI is cash-flow negative and burning Intel's fresh capital. There could be a damper on this stock until the numbers turn around.
Google began distributing the $1,500 device to computer programmers and about 10,000 randomly selected people in 2013 with the hope that the test group would come up with new ideas for using Glass and drum up enthusiasm for a hands-free way to remain connected to the Internet.
Although it generated plenty of intrigue and publicity, Glass struggled to win widespread acceptance. Part of the aversion stemmed from a design that made it look like a weird contraption rather than a hip accessory. Glass also turned off many people for its potential to intrude on people's privacy by secretly taking pictures or video.
"It is a perfect stalker's tool," said John Simpson, privacy project director of Consumer Watchdog, a group has been among Google's most strident critics. "It's difficult to see how they solve that."
About half of all consumers had privacy concerns about Glass, according to data compiled by Forrester Research.
The price also limited the demand for Glass when Google began selling the device to all comers last May.
"Google needs to construct a consumer image for the product, and deal with privacy concerns if they want it to be mass market," said Forrester analyst J.P. Gownder.
Google hasn't disclosed how many units of the Glass' Explorer version were sold. The company says about 100 businesses, including Hewlett-Packard, Boeing and Taco Bell, are testing Glass as a tool for work.
SAN FRANCISCO (AP) -- Google will stop selling its Internet-connected eyewear to consumers until the company can develop a more polished and affordable version that's less likely to be viewed as a freakish device.
The sales moratorium on the nearly 2-year-old "Explorer" edition of Google Glass goes into effect Jan. 19. The decision announced Thursday coincides with Glass' spin-off from the secretive Google X lab where it was invented.
Glass will now operate in a division steered by veteran marketing executive Ivy Ross, whose past experience includes stints at fashion-conscious companies such as Gap Inc. and Calvin Klein. Ross will report to Tony Fadell, who played an instrumental role in the design of Apple's iPod and now runs the smart-appliance maker Nest Labs that Google Inc. bought for $3.2 billion last year.
Google will still sell a version of Glass to companies that have found uses for the device in their offices, stores and factories. The Mountain View, California, company still plans to come back with a new consumer model of Glass, but hasn't set a timetable for the next release.
By the time Glass returns to the consumer market, it will face more competition from other wearable computing devices, including a line of smart watches that Apple Inc. plans to begin selling this spring.
In a Thursday blog post, Google likened the Explorer edition of Glass to an infant learning how to walk.
"Well, we still have some work to do, but now we're ready to put on our big kid shoes and learn how to run," Google said.
Glass looks like a pair of spectacles except the Explorer edition didn't contain any actual glass in the frame. Instead, the device has a thumbnail-sized screen attached above the right eye so a user can check email, see Twitter posts or get directions without having to grope for a phone.
In addition, the Issuer and the Reporting Person agreed to use their commercially reasonable efforts within the 45-day period following the Closing Date, to negotiate in good faith a collaborative development agreement pursuant to which they would collaborate with respect to certain key technologies of the Issuer, and the Issuer would grant certain rights to the Reporting Person to be a lead partner in commercializing such technologies in certain markets to be agreed upon.
That is some serious sustained intraday sell pressure. No need to buy until you see a close higher than the open.
That he will lobby Obama to change US privacy laws for social media companies? TWTR also under pressure today.
Use your brain. This company paid over $70 million for one game that can barely hold the top 20, and will never see the top 10 in its lifetime. That's a big reason why this stock tanked from $7 to $3.50 after the news was announced. They pretty much announced to the world that they have no skill at creating games organically from the ground up. And the market voted with their feet. The company is in survival mode. It is dilutuon or die. Acquire outside games and hope and pray they stay popular long enough to recoup some of the cost before the game fades into oblivion. That is their business model. Gomes likes it. But the market doesn't. Too bad Gomes is not the market. Haha!
Yeah, Gomes is still pumping this POS, though he's been rather quiet lately. He's been taking a beating over at the private PTT message board for his underperformance in 2014. He's been laying low and hoping it blows over. If he was smart, he would cut this garbage stock loose and book a 10% profit and don't look back. This is the only "winner" he's picked in a year, and that's really saying something. All his other picks either went bankrupt or are in the red. DLIA, MATR, JAKK, and AERO. All of them - black holes, where money goes to die. And people actually PAY him for picking losers. What a racket.