What they don’t want you to see: SEC filing by pitched penny stock

We seriously doubt that the company being flogged by the newsletter mentioned in the last post even knows about the pitch. IFO thinks the company’s management has its hands full with internal problems since it’s founding Feb. 8, 2008. BTW, this is one of the famous Friday night SEC filing drop.

Here’s their latest, redacted:

Form 8-K/A for XXXX MEDICAL INC — 10-Jun-2011
Item 4.01 (a) Dismissal of Previous Independent Registered Public Accounting Firm

On May 27, 2011, XXXX Medical Incorporated (the “Company”), with the approval of its Board of Directors (the “Board”), dismissed XXXXXX, PLLC (“XXXX”) as the independent registered public accounting firm engaged to audit the Company’s financial statements.

The reports issued by XXXX relating to its audits of the balance sheets of the Company as of July 31, 2010 and 2009, and related statements of operations, stockholders’ equity (deficit) and cash flows for each of the fiscal years then ended and for the period from inception (February 8, 2008) through July 31, 2010, contained an explanatory paragraph noting that the Company’s expected losses, negative working capital, and need to raise capital raised substantial doubt about its ability to continue as a going concern.

Other than as disclosed above, such reports did not contain an adverse opinion or a disclaimer of an opinion and were not qualified as to uncertainty, audit scope or accounting principles.

During the Company’s two most recent fiscal years and the subsequent interim period preceding the dismissal of XXXX, there were no disagreements with XXXX on any matter of accounting principles or practices, financial statement disclosure or auditing scope or procedure.
However, as disclosed in the Company’s Annual Reports, the Company’s management determined that internal control over financial reporting was not effective as of the end of such periods due to material weaknesses related to:
� inadequate segregation of duties;
� lack of a functioning audit committee due to lack of a majority of independent members and lack of a majority of outside directors on the board of directors, resulting in ineffective oversight in [said] internal controls and procedures; and
� ineffective controls over financial disclosures and reporting processes.

Other than [that], there were no reportable events during the two most recent fiscal years or during the subsequent interim period through May 27, 2011. The Board of Directors discussed the subject matter of each reportable event with XXXX. [???]

The stock, now trading at $1.23, is down almost 11% today.


About InvestingforOne

I've been investing in various assets by myself using a discount broker for many years. Over that time, I've developed some theories that others might find useful. Plus, there is more to investing than money. Time, talent, work, friends, family all go into developing a good and satisfactory strategy.
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