Jack Zahran
Forum Replies Created
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They refer to them as cash expenditures directly related to the accounting work. Not cool.
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“think Jack is close to the truth and I’m not even implying that sinister a motive. I do think what they’re doing is calculated.”
I found something quite shocking in the latest filing. They plan to spend 35 Million of their 45 million in cash to continue trying to restate their accounts due to wrongly classifying upgrades. They say that it’s because of the number of upgrades involved.
What are they using, paper ledgers? Whether it’s 10 upgrades or 10 Million (I think they claim 5 Million), the software would crunch right through the numbers. No way any capable accounting department would take that long and have to pay so much. The more I read of their SEC filings the more it smells of a snow job.
This is very disturbing. Their latest SEC filing also introduces some highly complex preferred stock that will be granted only to shareholders who are of record in the next couple of days and based on their percent ownership. That is, it is a very qualified grant to certain target investors. So while the pretext for non filing is going on , they are filing changes in their capital structure to preference certain shareholders. And, at the same time spending down what little cash they have left to “consultants.”
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“The documents pretty clearly state that the cause is the calculation of income from updates. This requires a recalculation of several years worth of balance sheets. Not a small matter.”
So why didn’t they at least keep up with their 10Qs? It belies a more serious problem, it raises the suspicion that “recalculation” was a cover to hide something worse. It doesn’t take a year to put update income into a spreadsheet and apply a different schedule to them.
Did the publish the Auditors report on the problem?
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They didn’t file their 10Qs and they already admit to having to restate years worth of AUDITED financial statements, we’re talking the 10Ks. That means that an Auditor is involved as well. The executives have to sign off on these statements and take personal responsibility. It’s not a minor quickbooks mistake. It’s a really serious problem for them, their shareholders and their stakeholders. Their stakeholders are all owners of Avid software, services and hardware.
During this period of uncertainty, there is a danger of a flight of talent to their competitors. Without debt, there is no chance to force a bankruptcy in order to get a trustee in there to protect the assets. This is too well orchestrated for my comfort. Definitely the hands of well paid lawyers can be seen in their current strategy. And, those lawyers are working for the executive bench; shareholders and stakeholders be damned.
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Since they have not done any financial reporting, their stocks will become a pink sheet company, so the symbol would be postfixed with “.pk” They even drop below the OTC BB, which is a Nasdaq trading firm as well. However, the majority owner of the stock owns the company.
Since they did not declare bankruptcy and they are debt free and still liquid, no creditor exists that can force them into Bankruptcy. Their agreement with Nasdaq was that they would continue timely filings of their 10Qs, quarterly filings. However they failed to do even this simple act. Remember, 10Qs are not audited, so they are not expected to be perfect. The 10K however is, but they were given freedom to stay listed by filing 10Qs until they repaired their accounts.
I’m still doing my due diligence, but some initial theories are:
1. the senior Exec team is involved in a financial scandal, with potential criminal implications.
2. they are hoping to delist to help cover disclosures that can be used against them
3. they are hoping to go private by driving down the price of the stock. The pink sheets are penny stock investors, their current price is too high for them. So the stock would become largely illiquid and prone to huge swings, particularly downward. They can then get additional outside funding and issue a ton of stock to “friendly” investors, who would then use their majority to take the company private. And they can keep putting the profits in their own pockets without anyone watching.It’s not pretty no matter how you look at it.
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What are the pain points to implementing this workflow in FCPX? (From what I can tell, Key frames will show on the timeline with the Animation Editor open and there is a built in Time code generator.)
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The nMP has three (3) separate thunderbolt buses. Did you attach each of the high bandwidth devices to separate buses?
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You need Compressor 4 if you’re using Mavericks (you may need to delete the plist files and restart compressor twice if you used it before the upgrades.) Set the number of cores you use to half the memory, i.e., 8 GB RAM, let it use 4 cores. Set Qmaster on both iMacs. An interesting thing to do would be to set up a Thunderbolt over IP network between both iMacs to leverage the 10Gb/s removing the network as a bottleneck. Set up the work folder on the fastest drive.
