Auditing

U-Turn on ”New” Accounting Firm

Maker of energy drinks targeted to the NASCAR market acknowledges ''a poor choice of words...as there never was a previous accounting firm.''
Dave Cook and Stephen TaubMarch 22, 2007

Beverage maker DC Brands International, whose Dickens Energy Cider and Turn Left energy drink are marketed primarily in NASCAR country, has clarified earlier statements about its “new” accounting firm.

In a rambling press release, the company stated that “President Richard Pearce’s use of the word ‘new’ has confused some people in thinking that if the company is getting a ‘new’ accounting firm, there must have been something wrong with the old one.”

DC Brands acknowledged, however, that “in actuality, the accounting firm will be new to the company; being that it will be the 1st one this company will have had. It was a poor choice of words; as there never was a previous accounting firm.”

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According to Pearce, chief financial officer Jeremy Alcamo has been more than up to the task. “Until now, we have done all of our own bookkeeping, filing and reporting, he said, in the release. “We use a very sophisticated accounting system (Microsoft Dynamics) which Mr. Alcamo did a masterful job of implementing over the past 6-8 months. Jeremy is immensely talented and has my full and complete confidence in everyway.”

The release then elaborated on the company’s search for an accounting firm.

Earlier, Pearce asserted in an equally colorful release that the SEC’s “Operation Spamalot” should not have halted trading in DC Brands’ stock and forced it onto the Pink Sheets. He acknowledged, however, that ” the SEC is doing exactly what they should be doing, their job. Â… If they are looking for fake cures for cancer companies, those that have paid spammers or other forms of stock promoters to market their stocks, then I only ask that they bring their largest magnifying glass and shine it on us first; because we are 100% legitimate.”

Pearce elaborated that DC Brands had assembled a comprehensive due-diligence file “to prove the absolute validity of any and all releases that may have contributed to the incredible increase in our share price and volume.” Added Pearce, “I absolutely give my word to all of our shareholders that you can look forward to straight, honest and timely quarterly reporting of our news and full transparency of any necessary financial figures.”

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