With a wealth of publicly available data today, one of the challenges we face is being able to analyze that data in an efficient manner. Customized notifications of significant corporate events and ease of access to company public filings are some of the ways that challenge can be met, as the following example will show.
The First Serious Deficiencies Letter Issued by the SEC
Monster Products was founded in 1979 and is best known for its audio-video cables and headphones. The company has been privately held since its inception. In April of this year, it completed a reverse acquisition with blank-check company Atlantic Acquisition. The agreement was initially announced in February.
In a comment letter dated June 15, 2018, the SEC notified Monster Products of serious deficiencies in Monster’s Form S-1 filed on May 25. This was soon followed by Monster’s dismissal of its auditor - MaloneBailey LLP - and the resignation of its interim Chief Financial Officer. Both of the subsequent events were reported in an 8-K filed on June 20.
The rejected S-1 outlined a plan to sell a cryptocurrency (Monster Money Network Tokens) which would have been convertible to common stock (4 tokens to 1 share) if the tokens had not become publicly tradable or had stopped trading publicly by June 3, 2020. The SEC serious deficiency letter followed by auditor dismal and CFO resignation paint an interesting picture of the company and warrants further investigation.
Tracking Significant Corporate Events
idaciti simplifies the task of tracking significant corporate events - such as a change in auditors or officers - by providing email notifications of public filings for these events. You can select to get notifications for a set of companies you follow, or across all companies. Rather than having to periodically check each company’s filings one company at a time, idaciti combines notifications for you so that you can keep abreast easily of the latest developments. Or, if you prefer, you can receive near real-time email notifications as the significant corporate event is filed with the SEC.
Corporate Events Timeline Provides Context
After being notified of an event, idaciti’s Corporate Events Timeline allows for contextualization. The intuitive interface enables viewing the significant event details from within the platform, and a link to the SEC EDGAR source is also provided. This allows you to see the history and sequence of events which might give you better insights into the trajectory or decline of the company.
Modernize Disclosure Research: Connecting the Dots
For the more detailed investigation, idaciti Notes Cards allow you to search across filings for the company with options to specify a time period and to narrow down the types of disclosures being searched.
The highlight function of a Notes Card quickly guides you to the parts of the document containing the keywords while also allowing the highlights to be saved as a PDF.
Searches of the footnotes to Monster’s 10-Q and 8-K filings revealed a distressed financial situation for the company which includes “negative working capital as of December 31, 2017, and 2016 of $75.9 million and $10.5 million, respectively” and uncertainty concerning the company’s ability to achieve profitability.
This information was not available in the Q1 financial statements because the combination of Atlantic Acquisition and Monster Products was only completed in Q2.
Notifications of significant events, combined with the abilities to rapidly research companies’ data and document those findings for collaboration and future reference saves time and creates more informed, timely decisions.