Case Study # 4: SEC Reporting / Filing Project
The Client: A publicly traded company in the telecom and networking industries. The company was approximately 18 months delinquent in its SEC filings, including 2 separate Form 10-K filings and 6 quarterly 10-Q statements, plus various 8-K filings. The company was seeking to raise additional capital and it was being hindered in its efforts by the lack of current filings with the SEC.
The Task: Oversee the drafting of the company’s filings with the Securities Exchange Commission (SEC) and interact with the audit firm in preparation of the SEC filings.
Issues: The company has over 18 months delinquent in its filing with the SEC. Furthermore the company was still attempting to answer SEC comments on its most delinquent 10-K filing. Additionally due to financial distress the company was without an attorney to assist in its filings.
Secondary Issues: Due to the company’s delinquency in its filings with the SEC, the company had been delisted from the OTC Bulletin Board and was trading on the Pink Sheets as a result of its delisting. The company was seeking to file a 15c2-11 disclosure statement following the completion of bringing its filings with the SEC current and regain its OTC BB listing.
Plan of Action:
Coral Capital Partners immediately began working the client’s finance department and auditors to address the SEC comments regarding its 10-K filing and upon reaching the “no further comment” stage on the 10-K began working to file the remaining delinquent reports. Approximately mid-project the Client’s CFO was terminated; requiring Coral and a small internal finance department at the Client to complete the project.
The Client was able to file 10-K(s) for two (2) separate fiscal year ends, six (6) quarter 10-Qs, and an 8-K filing within a 5 month period of time. Within 90 days of becoming current in its filings, the Client had successfully filed its 15c2-11 disclosure statement and upgraded its listing from the Pink Sheets to the OTC BB.
Approximately 30 days following the upgrading of its listing to the OTC BB the Client succeeded in raising addition capital.