RE:Smells good!See the latest release: Reversal of a restructuration provision. Looks like they were setting the market up for a big wash in the Financial statements. Looks extremely bad on the Board and Audit Committee. hey may also have received an observation – question letter from Securities Regulators. Happens all the time.
To me this is border line behaviour. What is the catch? Watch out for the Proxy Form. Would not be surprised that a big portion of Mailhot’s bonus will be on reversing the losses. An awful team and management that has brought total value destruction over many years. Have also underinvested in their technology for years. The only value they created are the carry-forward tax losses. And if you read the past disclosure closely, i think they gave away the Intellectual property in guarantee to the bank! No analyst coverage, probably no banking relationships. Totally burnt on the street. No cash-flow being generated, impossible to lever up the balance sheet over the long term, The only way out is if one of their new partners to fork money upfront or an equity raise. Upcoming dilution to fund working capital? Bye-bye. Tons of better companies and stocks out there