Monday, April 8, 2019
SRAX Runs Into Financial Reporting Issues
Los Angeles-based Social Reality (SRAX), which developing digital marketing and consumer data management software--and more recently, has tried to launch its own cryptocurrency related effort called BIGtoken--said it is restating its results all the way back to March of 2017. According to the company, both its quarterly results and yearly financial statements should "no longer be relied upon", including press releases involving those financial statements. SRAX--which is listed on the NASDAQ--said its management has also determined a "material weakness related to the accounting for financing transactions". SRAX originally was developing Internet advertising technology, but last year jumped on the Blockchain trend and tried to create its own cyrptocurrency related products. SRAX--which previously was known as Social Reality--only moved to the NASDAQ from being traded over the counter in 2016, shortly before the period covered in today's restatement issue. (In a statement, the firm says it has "never created their own crytocurrency").