Let’s cut to the chase: INKW (Greene Concepts Inc.), being an OTC-traded company, doesn’t always put out shiny investor reports like Apple or Microsoft would every quarter. Many of us (I included!) have randomly browsed OTC Markets’ official INKW disclosure page instead of the SEC’s EDGAR, just out of habit — and sometimes got a shock when there’s... nothing new.
I once spent half an hour refreshing all three sites — even texted a pal in the US to see if maybe INKW had issued a “secret” Facebook update company news. Turns out the last major financials are always going to be those Disclosure Statements on OTC Markets, like the one below:
Cracking open that disclosure, frankly, is like reading a high school accounting project (no offense!) compared to the big SEC stuff. But it’s still real, verified, and legally matters. Here’s what I found, after poring over the actual full PDF from OTC Markets (direct link):
As someone who likes risky microcaps (bad habit, I know), I noticed in investor chats (see: this InvestorsHub forum post) users repeatedly ask about “uptick in sales” and whether Q2 might surprise. Most, like me, are cautious bordering on weary.
Seeing how INKW’s numbers are just “management certified” got me thinking (and ranting) on a phone call with an old friend who works at a Japanese trading firm. Turns out, what counts as “verified trade” or “certified earnings” is radically different worldwide! Here’s a simplified comparison table I built after digging into WTO, WCO, and EU documentation, plus poking the US USTR portal (and a minor panic when I read pages of legalese):
Country | Standard Name | Legal Basis | Official Agency | Typical Use In Microcap |
---|---|---|---|---|
USA | SEC/OTC Disclosure, Reg A+ | Securities Exchange Act 1934, OTC Markets Rules | SEC, OTC Markets | Management certified, rarely audited |
EU | IFRS Reporting, ESMA Guidelines | EU Prospectus Regulation (EU) 2017/1129 | ESMA, local exchanges | Audited, must reconcile with IFRS |
Japan | J-SOX, FSA Disclosures | Financial Instruments and Exchange Act | FSA, Tokyo Stock Exchange | Audit plus strict internal controls |
China | CSRC Filing; “Blue-Chip Supervisory Statement” | Securities Law of PRC (2019) | CSRC, China Exchanges | Audit by designated CPA mandated |
That’s a lot of governance to say: US OTC disclosures (like INKW’s) aren't forced to be audited. Compare that to the EU, where most financials—especially for public companies—must line up with strict IFRS standards and get an outside audit stamp.
This wasn’t with INKW, but it makes you appreciate how tough “cross-border compliance” gets. Imagine:
Country A (let’s say, US) accepts OTC Pink reporting, so a microcap’s annual report with “CEO certification” is fine. Country B (say, Germany) demands IFRS reconciled, audited statements before local investors can legally buy in. A US stock like INKW wants to market to German retail. Suddenly, regulators from both sides clash: is Country A’s “certified” report enough, or must the firm upgrade to IFRS and full audit?
It’s such a headache that, according to the WTO’s 2019 Aid for Trade report (see p.153), these conflicting national standards can block cross-listings and chill foreign investment.
Industry expert Helen Burton, FCA advisor (fictional, but based on real interviews from AccountancyAge) put it bluntly in a webinar last year:
“Hundreds of microcap and OTC companies are at a crossroads: US rules let you self-certify, but if you try to raise European capital, the bar is much higher. It’s not just about numbers—it’s about trust. I’ve seen deals fall apart just because documentation wasn’t up to EU standards, even when real sales growth was robust.”
On a lazy Sunday, I sat down to “do my own due diligence”—which often means, yes, downloading yet another PDF that looks like a college group project. At first, I thought I’d made a mistake: surely this couldn’t be the official disclosure? But sure enough, that’s what OTC allows—signed by the CEO, not an outside auditor.
After muttering to myself (“This would never fly in Frankfurt or Shanghai...”), I jumped on a stock forum and found the same complaints. Turns out, for US OTC stocks, it’s not about misleading anyone — it’s about cost and regulatory flexibility. The idea is, for small companies, audits are expensive, and the tradeoff is less stringent oversight to lower barriers for early stage businesses. Fair, but as an investor, it’s honestly a “buyer beware” world.
Once, I almost missed a big write-down in a microcap because it was buried in a footnote — totally legal under OTC rules.
INKW last issued its formal earnings/annual disclosure on May 15, 2024 (covering up to February 29, 2024), per the official OTC Markets page. The numbers show mild revenue growth but ongoing losses and razor-thin cash. Be aware: these numbers, while “certified,” aren’t independently audited—common for OTC stocks in the US, and nearly impossible in more tightly-regulated markets like the EU or Japan.
If you want more security, wait for an eventual uplist and audited filings; if you’re comfortable with a higher gamble for possible returns, “management certified” may be enough for now—just recognize the limits.
Next step? Always check the OTC Markets disclosures first, set an alert for news, and—my personal tip—read investor forum discussions for buried red flags and bullish “hopes.” And never, ever, assume that because an earnings date passes without news, “no news is good news.” Sometimes, it’s just no news.