What are the potential risks or contingencies associated with the audit progress and the timeline for completing the transition to a reporting company?

Potential risks / contingencies

1. Audit‑related timing risk – The “progressing audit” is still a prerequisite for the fully‑reporting status and the OTCQX uplisting. If the auditor uncovers material weaknesses in internal controls, pending litigation, or accounting adjustments, the audit could be extended well beyond the June‑30, 2025 filing date. A delay would push back the expected uplisting deadline, keep the company in the “non‑reporting” tier and suppress the premium that typically accompanies an OTCQX move. Market participants often price‑in a “contingent‑value” for such regulatory milestones; any setback can trigger a rapid sell‑off, especially in thinly‑traded OTC stocks.

2. Regulatory‑approval risk – Even after the audit is complete, the SEC and OTC Markets Group must approve the transition. The review can be stalled by incomplete disclosures, pending SEC comment letters, or a need for additional filings (e.g., Form 20‑FR). If the company must file supplemental reports or restate portions of the June‑30 financials, the added compliance cost and uncertainty will weigh on earnings expectations and could force a downward price correction.

3. Liquidity and valuation risk – Until the uplisting is finalized, CGLD remains on a lower‑tier market with limited institutional participation and wider bid‑ask spreads. A prolonged transition keeps the stock exposed to higher volatility and makes it harder for large‑cap investors to take sizable positions without moving the market. If the timeline stretches into the next quarter, the anticipated “uplist‑premium” may never materialize, capping upside potential.

Trading implications

• Short‑to‑mid‑term bias: If you are risk‑averse, consider a short‑position or a tight stop‑loss around the current level, given the upside is contingent on a clean audit and timely uplisting. The most immediate catalyst is the auditor’s final sign‑off; any negative comment letter or extension announcement is likely to trigger a 5‑10 % drop in the next 1‑2 weeks.

• Long‑bias with conditional exposure: If you are comfortable with event‑driven plays, a “buy‑on‑breakout” after the audit is cleared and the OTCQX filing is accepted could capture the uplist‑premium (historically 12‑20 % for comparable small‑caps). Structure the exposure with a defined‑risk option—e.g., a call spread with a strike just above the current price and a short leg at a higher strike—to profit from the upside while limiting downside if the transition stalls.

In short, the key driver is the audit’s timeline. Monitor SEC/OTC filings and any auditor‑release news over the next 10 business days; the market will reward a clean, on‑time transition and punish any extension or material weakness. Adjust position size accordingly to the probability you assign to each outcome.