Verde Bio Holdings, Inc. Updates on 10-K Late Filing

Rhea-AI Summary

Verde Bio Holdings, Inc. (OTC: VBHI) announced a delay in filing its Annual Report on Form 10-K for the fiscal year ended April 30, 2021, due to the complexities arising from recent acquisitions and compliance with SEC oil and gas accounting rules. The company has completed 16 acquisitions, with 10 occurring in the fourth quarter, expanding its revenue base but increasing the complexity of financial reporting. CEO Scott A. Cox emphasized the importance of maintaining compliance in accounting and filings, indicating that the 10-K will be filed as soon as possible.

Positive

• Completed 16 significant acquisitions, expanding revenue base.
• Ten of the acquisitions occurred in the fourth quarter, enhancing capabilities.

Negative

• Delayed filing of Form 10-K due to complexity in accounting and compliance.
• Increased complexity in financial reporting due to new SEC oil and gas accounting rules.

Frisco, Texas, Aug. 16, 2021 (GLOBE NEWSWIRE) -- via NewMediaWire -- Verde Bio Holdings, Inc. (OTC: VBHI) filed a Form 12b-25 Notification of Late Filing with the U.S. Securities and Exchange Commission regarding its Annual Report on Form 10-K for the fiscal year ended April 30, 2021.  In the Company’s desire to maintain transparency, the Company is announcing that it will not be able to file the 10-K by the due date afforded under the Extension filed July 29, 2021.

In connection with the audit, Verde Bio Holdings, Inc. retained an accounting group which specializes in oil and gas accounting to complete the estimation calculations and tests and the related disclosures now needed as a result of the Company’s fourth quarter acquisitions. 

“While the Company is disappointed in the timing, we need to make sure we are compliant in our accounting and filings,” said Scott A. Cox, Verde CEO.

"To date, the Company has completed sixteen significant acquisitions; ten of those in the fourth quarter," said Mr. Cox. "These transformative additions have greatly expanded our capabilities and revenue base but have also added to the complexity of our financial accounting and reporting, as we are now subject to full SEC oil and gas accounting rules. These rules include reserve reporting, estimation of revenues in suspense, impairment Ceiling Tests and full SMOG Disclosures. Our accounting and audit groups are working to complete all remaining matters and expect to file our Form 10-K as soon as practically possible."

About Verde Bio Holdings, Inc. Verde Bio Holdings, Inc. (OTC: VBHI), is a growing U.S. Energy Company based in Frisco, Texas, engaged in the acquisition and management of Mineral and Royalty interests in lower risk, onshore oil and gas properties within the major oil and gas plays in the U.S. The Company’s dual-focused growth strategy relies primarily on leveraging management’s expertise to grow through the strategic acquisition of revenue producing royalty interest and strategic and opportunistic non-operated working interests.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:

Statements in this press release that are not strictly historical are “forward-looking” statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. These statements involve a high degree of risk and uncertainty, are predictions only and actual events or results may differ materially from those projected in such forward-looking statements. Factors that could cause or contribute to differences include the uncertainty regarding viability and market acceptance of the Company’s products and services, the ability to complete software development plans in a timely manner, changes in relationships with third parties, product mix sold by the Company and other factors described in the Company’s most recent periodic filings with the Securities and Exchange Commission, including its 2019 Annual Report on Form 10-K and quarterly reports on Form 10-Q.

Contact:

Paul Knopick E & E Communications

pknopick@eandecommunications.com

940.262.3584

FAQ

What is the reason for Verde Bio Holdings' delay in filing its 10-K?

Verde Bio Holdings delayed its 10-K filing due to complexities related to recent acquisitions and compliance with SEC oil and gas accounting rules.

How many acquisitions has Verde Bio Holdings completed?

Verde Bio Holdings has completed 16 acquisitions, with 10 occurring in the fourth quarter.

What is the stock symbol for Verde Bio Holdings?

The stock symbol for Verde Bio Holdings is VBHI.

What are the implications of the delay in 10-K filing for VBHI investors?

The delay in 10-K filing may indicate potential risks in financial reporting and compliance, which could impact investor confidence.