Axesstel, Inc. Ticker: AXST is a Southern California company that sells mobile telecommunication devices and security systems to customers in Europe, the Middle East, and Africa. As a public company Axesstel is required to file quarterly and annual reports with the SEC that present financial results in conformity with GAAP. On February 28, 2013, Axesstel

Files with the SEC its Annual Report on Form-10-K for the period ending December 31, 2012. You are an independent CPA who also provides investment advice. You are going to write a one-page memo in which you answer a client’s question about the 10K and recommend whether to pursue an investment in the company.

Required: What you advise your client is up to you but be sure to justify your position.