Investing.com -- Code Rebel Corp (NASDAQ:CDRB), a Hawaii-based enterprise software development IT services firm, vehemently denied charges that the company failed to complete two regulatory filings accurately last year, hours after the U.S. Securities and Exchange Commission suspended trading of its securities on Friday morning.
Earlier on Friday, Code Rebel acknowledged that the company received a Suspension of Trading notice from the SEC regarding the veracity of 10-Q forms it filed for the two quarters ending in June and September, 2015. Code Rebel also admitted receiving a notice regarding a 10-K form it filed with the Commission pertaining to the company's assets and financial condition. The order effectively suspends the company from trading its stock through May 19.
"Up to this point, Code Rebel has not received any communication from the Commission regarding the accuracy of its financial statements. Code Rebel's annual financial statements were audited and its other financial statements were reviewed by a PCAOB-registered accounting firm," Code Rebel said in a statement. "Code Rebel continues to believe that its SEC reports, including its financial statements included in the 10-K and 10-Qs questioned by the SEC, are accurate in all material respects and comply with the disclosure requirements of the SEC.
For the third quarter of 2015, one of the periods in question, Code Rebel finished with revenues of $0.25 million, up from $0.05 million during the same quarter a year earlier. At the same time, the company's earnings ticked up from $0.01 million to $0.02 million during the three-month period. Code Rebel licenses proprietary software solutions to enable simplified secure access and communications between PC and Mac environments on both computer and digital platforms, according to its website.
"CDRB is a Delaware corporation with its principal executive offices in Kahului, Hawaii. Its stock is listed on NASDAQ under the symbol CDRB. The Commission is of the opinion that the public interest and the protection of investors require a suspension of trading in the securities of the above-listed company," Commission secretary Brent Fields said in a filing.
When trading in Code Rebel was suspended on Friday, shares in the software development traded at 2.16, down more than 90% from their 52-week high of 44.14.