Received an email from bulldog yesterday:
Sorry about not getting back earlier. I have been working on some other matters for the last couple of days and have been remiss about keeping you current. Doug responded to my questions as follows:
1. The stock of Internet Guide has been sold and/or traded and was liquidated for a profit.
2. To his knowledge, all Virginia judgments and tax liens have been settled or paid and none are outstanding. The Ohio judgment has been appealed and a supercedeas bond (for stay of enforcement of a judgement pending appeal) was posted in an amount equal to the judgment, plus interest for a year plus attorneys fees and costs. If Hqnt loses its appeal, it will pay the judgment from the funds deposited for the bond. If Hqnt wins, the funds will be returned to Hqnt nad the case will be tried.
3. Hqnt has begun looking for a chief financial officer. I have told Doug that my employer and our associates will not tolerate engaging a CFO who is there only for show- he must be capable and have responsibility for accounting and financial matters, although he will be subordinate to Doug.
4. Doug has requested a legal opinion from company counsel to resolve accounting treatment of certain issues relating to acquisitions, receivables and prepaid items. The opinion will resolve the issues. Without stating in so many words, in my view it is now a timing issue.
5. The Intelliservices acquisition is not a matter about which the accountants seem to be concerned. The contracts themselves stated that they constituted delivery of the warrants. Dr Rao had no interest in Intelliservices, as he admits in his pleadings, and his claim for recovery of his "$300,000 investment" has no basis in fact- he now just wants a share.
6. Doug does not think the stock listing on the bulletin board is in jeopardy, and does not think it will go to the pink sheets.
