As per the press release, you would think that the last bunch of transactions had just crippled the accounting firm.
As previously announced in its Form 8-K filings with the SEC, the Company has been delayed in filing financial reports pending completion of its 2008 audit. The Company's change in independent registered public accountants and the complexity of the technical accounting treatment required with respect to the embedded derivatives resulting from the sophisticated financial instruments used in several of the Company's financing transactions were factors in the delay, which has resulted in the suspension of trading from the OTC Bulletin Board. Completion of the audit and filing of financials with the SEC is expected during July, at which point the Company plans to apply for reinstatement of trading of its common stock on the OTC Bulletin Board.
But a document mailed to me today states that Global Capacity, Inc. is experiencing "an unplanned cash constriction". Nice phrase. What does that mean? No commission payments since January.
Global Capacity Inc purchased 4 companies in 33 months. The acquisition of Vanco Direct in 2008 was the pincher due to $6M in accounbts payables. Revenue doesn't mean diddley. Cash flow is king, folks. I hope GCG's plan works because I like getting paid my commissions on circuits sold.