Rational ResponseA similar view to some of the previous posts. GLTA
Payfare is currently under a CTO as (quoted from their press release):
"The delay in the Annual Filings is due solely to the delay in receiving the System and Organization Controls (" SOC 1") auditor's report from its material vendor (the " Vendor ") which is required in order for the Company's independent auditors to complete their required audit procedures to issue their opinion"
How much of a concern or potential red flag do you view this to be?
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It is possibly not as bad as investors think, as this news has been misinterpreted each time an update is provided and the stock sells off. These filings are also related to the full year results for which unaudited results have already been released and were strong. Barring something significant in the audited results, there should not be a significant impact on the stock when the vendor provides confirmation. PAY expects to announce and file its Q2 2024 financial results in early August and these issues with its vendor should be figured out. Management has had a clear stance that this is a vendor issue and we think the CTO made sense here. (5iResearch)