Sunday, October 20, 2019
Hawai'i Free Press

Current Articles | Archives

Friday, May 20, 2016
Bankruptcy for Code Rebel: Yet Another Hawaii High Tech Tax Credit Implosion
By Andrew Walden @ 2:22 AM :: 6543 Views :: Tax Credits

Code Rebel files for Chapter 7 bankruptcy

From Briefing.com, May 18, 2016

On May 17, 2016, Aegis Identity Software, Inc., a Delaware corporation provided a letter to Code Rebel Corporation, that terminated the Agreement and Plan of Merger dated March 11, 2016, by and among Aegis, the Company and CR Acquisition Corporation, a Delaware corporation wholly owned by the Company.

  • On May 18, 2016, Code Rebel Corporation commenced a bankruptcy case by filing a voluntary petition for relief under the provisions of chapter 7 of title 11 of the United States Code, 11 U.S.C. §§ 101 et seq. in the United States Bankruptcy Court for the District of Delaware. As a result of the filing of the Chapter 7 Case, a Chapter 7 trustee will be appointed by the Bankruptcy Court and will assume control of the Company. The assets of the Company will be liquidated in accordance with the Code. The Company's board of directors, after spending considerable time and effort attempting to pursue and complete strategic alternatives to finance, restructure or sell the Company and not being successful, concluded that no viable options remained for continuing operations, and that the Chapter 7 case is the only alternative available
  • Each of the directors of the Company: Arben Kryeziu, Volodymyr Bykov, James Canton, Ph.D. and David Dwelle, are resigning from the Company's board of directors effective after the filing of the Chapter 7 Case and on the date hereof. Each of the officers of the Company, including Reid Dabney, Chief Financial Officer and Secretary, are resigning their officer positions and will cease to be employees of the Company effective after the filing of the Chapter 7 Case and on the date hereof.

  *   *   *   *   *

mbloomnetwork

by Andrew Walden

Citing “questions regarding the accuracy of statements” in the company’s financial reports, the Securities and Exchange Commission Friday suspended trading in the shares of Maui-based ‘Code Rebel’ (CDRB).  Most likely the questionable financial statements were exposed during Code Rebel’s March, 2016 effort to merge with Denver-based Aegis.  

This is the latest in a long list of Hawaii high-tech implosions – while all the time burning a billion dollars worth of Act 215/221 High Tech Tax Credits without any oversight.

Here are the details….

PBN May 6, 2016 reports:

Code Rebel was the first Hawaii-based technology company to IPO since Hoku Corp. went public in August 2005. (And we all know how that ended.)

Code Rebel’s sole product is its iRAPP terminal service software, which allows users of Windows PCs and Apple computers to simultaneously access programs on their PCs and Macs through a single device using a single monitor, mouse and keyboard.  (Lotta litigation over claims of stolen software.)

Previously analysts had raised concerns about the company’s weak fundamentals.

Code Rebel was founded by Arben Kryeziu, a general partner in Maui-based venture capital fund mbloom Ventures LLC, which was embroiled in controversy in 2014 after announcing its investment in two companies founded by the fund’s general partners. One of the companies the venture capital fund invested in was Flikdate, a mobile dating app, whose chief technology officer was also Kryeziu.

Wikipedia points out:

In 2005, the owner of Code Rebel, Arben Kane (he changed his name from Kryeziu), was associated with the controversial Cherry OS project. Critics alleged that CherryOS contained code grafted from PearPC, which would have been a violation of the GNU General Public License.[18] In March of 2011, Code Rebel's competitor Aqua Connect, Inc. filed suit against Code Rebel claiming misappropriation of trade secrets.[19] The Cherry OS controversy was used by Aqua Connect's lawyers in an attempt to discredit Code Rebel and Kane.[20]

A 2004 Slashdot reviewer isn’t fooled:

CherryBS continues "PearPC developers who have seen CherryOS have confirmed it is a fraud, while others remaining anonymous have posted the 'strings' output that CherryOS and PearPC share, showing many function names, warning/informational message strings that exist verbatim in PearPC. Additionally, now-pulled screenshots of CherryOS, mirrored in the long thread at pearpc.net, show CherryOS's boot process revealing variable names and missing or incorrectly emulated hardware in such a way as to be specific to PearPC. Arben Kryeziu, the developer of CherryOS, claims that no code has been taken from PearPC whatsoever, and that he will release a trial version this week. However, with the amount of deception on the part of the company, and considering this wouldn't be the first time he's violated the GPL, it's hard to believe they're telling the truth.

A SEC statement dated May 6, 2016 reads:

The Securities and Exchange Commission (“Commission”) announced the temporary suspension, pursuant to Section 12(k) of the Securities Exchange Act of 1934 (the "Exchange Act"), of trading in the securities of Code Rebel Corporation ("CDRB”), of Kahului, Hawaii at 9:30 a.m. on May 6, 2016, and terminating at 11:59 p.m. on May 19, 2016.

The Commission temporarily suspended trading in the securities of Code Rebel Corporation because of questions regarding the accuracy of statements in CDRB’s Forms 10-Q for the quarters ended June 30, 2015 and September 30, 2015, and the Form 10-K for the year ending December 31, 2015, concerning the company’s assets and financial condition. This order was entered pursuant to Section 12(k) of the Securities Exchange Act of 1934 (Exchange Act).

The text of the SEC Order explains

It appears to the Securities and Exchange Commission that there is a lack of accurate information concerning the securities of Code Rebel Corporation (“CDRB”) because of questions regarding the accuracy of statements in CDRB’s Forms 10-Q for the quarters ended June 30, 2015 and September 30, 2015, and the Form 10-K for the year ending December 31, 2015, concerning the company’s assets and financial condition. CDRB is a Delaware corporation with its principal executive offices in Kahului, Hawaii. Its stock is listed on NASDAQ under the symbol CDRB.

Your tax dollars at work.

---30---

SA: SEC freezes trading of isle company’s stock

Background:

Links

TEXT "follow HawaiiFreePress" to 40404

Register to Vote

2aHawaii

808 Silent Majority

808 State Update AM940

ABCDEFG Blog

ACA Signups Hawaii

ACCE

ALEC

Alliance Defending Freedom

Aloha Life Advocates

Aloha Pregnancy Care Center

American Council of Trustees and Alumni

American Mothers of Hawaii

AMVETS-Hawaii

AntiPlanner

Antonio Gramsci Reading List

A Place for Women in Waipio

Audit The Rail

Ballotpedia Hawaii

Better Hawaii 

Blaisdell Memorial Project

Broken Trust

CAFR Hawaii

Castaway Conservative

Children's Alliance Hawaii

Children's Rights Institute

Christian Homeschoolers of Hawaii

Citizens for Recall

Cliff Slater's Second Opinion

Coffee Break

Conservative Forum for Hawaii

CSIS Pacific Forum

DAR Hawaii

DeedySupport.com

DVids Hawaii

E Hana Kakou Kelii Akina

E Māua Ola i Moku o Keawe

Farmers For Choice Hawaii

FIRE

Fix Oahu!

Follow the Money Hawaii

Frank in Hawaii

Front Page Magazine

Frontline: The Fixers

Genetic Literacy Project

Get Off Your Butts!

God, Freedom, America

Grassroot Institute

Habele.org

Hawaii Aganst Assisted Suicide

Hawaii Aquarium Fish Report

Hawaii Aviation Preservation Society

Hawaii Catholic TV

Hawaii Christian Coalition

Hawaii Cigar Association

Hawaii Coalition Against Legalized Gambling

Hawaii ConCon Info

Hawaii Credit Union Watch

Hawaii Crime Victims' Rights

Hawaii Crop Improvement Association

Hawaii Debt Clock

Hawaii Defending Marriage

Hawaii Defense Foundation

Hawaii Families for Educational Choice

Hawaii Family Advocates

Hawaii Family Forum

Hawaii Farmers and Ranchers United

Hawaii Farmer's Daughter

Hawaii Federalist Society

Hawaii Federation of Republican Women

Hawaii Firearm Community

Hawaii Fishermen's Alliance

Hawaii Future Project

Hawaii Gathering of Eagles

Hawaii History Blog

Hawaii Homeschool Association

Hawaii Jihadi Trial

Hawaii March for Life

Hawaii Meth Project

Hawaii's Partnership for Appropriate & Compassionate Care

Hawaii Public Charter School Network

Hawaii Rifle Association

Hawaii Right to Life -- Big Island

Hawaii Right to Life -- Oahu

Hawaii Shield Law Coalition

Hawaii Shippers Council

Hawaii Smokers Alliance

Hawaii State Data Lab

Hawaii Together

Heritage Foundation

HI Coalition Against Legalized Gambling

HIEC.Coop 

HiFiCo

Hiram Fong Papers

Homeschool Legal Defense Hawaii

Honolulu Homeless Crisis

Honolulu Navy League

Honolulu Traffic

Horns of Jericho Blog

House Minority Blog

House Republican Caucus YouTube

HPACC

Hump Day Report

I Vote Hawaii

If Hawaii News

Imua TMT

Inouye-Kwock, NYT 1992

Inside the Nature Conservancy

Inverse Condemnation

Investigative Project on Terrorism

Iowa Meets Maui

Jackson v Abercrombie

Jihad Watch

Judgepedia Hawaii

July 4 in Hawaii

Kahle v New Hope

Kakaako Cares

Kau TEA Party

Kauai Co GOP

Keep Hawaii's Heroes

KeyWiki

Land and Power in Hawaii

Legislative Committee Analysis Tool

Lessons in Firearm Education

Lingle Years

Malulani Foundation

Managed Care Matters -- Hawaii

Malama Pregnancy Center of Maui

Mauna Kea Recreational Users Group

MentalIllnessPolicy.org

Middle East Forum--The Legal Project

Mililani Conservatives for Change

Military Home Educators' Network Oahu

Missile Defense Advocacy

MIS Veterans Hawaii

Muslim Brotherhood in America

NAMI Hawaii

NARTH

Natatorium.org

National Christian Foundation Hawaii

National Parents Org Hawaii

National Wind Watch

New Zeal

NFIB Hawaii News

No GMO Means No Aloha

Northwest Economic Policy Seminar

Not Dead Yet, Hawaii

Now What I Really Think

NRA-ILA Hawaii

Oahu Alternative Transport

ObamaCare Abortion Hawaii

Obookiah

OHA Lies

Opt Out Today

OurFutureHawaii.com

Pacific Aviation Museum

Patients Rights Council Hawaii

PEACE Hawaii

People vs Machine

Pritchett Cartoons 

Pro-GMO Hawaii

P.U.E.O.

RailRipoff.com

Rental by Owner Awareness Assn

Republican Party -- Hawaii State

Research Institute for Hawaii USA

Rick Hamada Show

RJ Rummel

Robotics Organizing Committee

Salvage The Rail

Save the Plastic Bag

School Choice in Hawaii

SenatorFong.com

SIFE Remington

SIFE W. Oahu 

Sink the Jones Act

Smart About Marijuana--Hawaii

St Marianne Cope

State Budget Solutions Hawaii

State Policy Network

Statehood for Guam

Tax Foundation of Hawaii

The Harriet Tubman Agenda

The Long War Journal

The Real Hanabusa

Time Out Honolulu

Truth About Trade & Technology - Hawaii

UCC Truths

Union Members Know Your Rights

US Tax Foundation Hawaii Info

Valor in the Pacific

VAREP Honolulu

Waagey.org

West Maui Taxpayers Association

What Natalie Thinks

Whole Life Hawaii

Yes2TMT