well, you never know jc. i will say that this guy has no experience in writing letters to shareholders but that does'nt mean much, probably the same reason the financials are f'd up. if the product/contract/business is still good then it will recover; however, it's pretty rare you get a halt on the pinks without something being seriously wrong.

from the outside looking in i'd say two possibilities here.

1. amateur hour mngt (recoverable)

2. "over creative" accounting to sell a penny stock (you'll know when the financials are redone, if they get re-done)

good luck!