Continuing to outpace Gizmondo (TGTL.PK) in its race into the ground, Infinium Labs (IFLB.OB, home of the aptly-named Phantom console) today announced that they were withdrawing their 2004 audited financial statements due to basic accounting errors, and that they believed the SEC was probably going to charge their former CEO Tim Roberts for possible involvement in "Fax Blasts" which illegally promoted penny stock companies such as Infinium Labs. We'll probably see what the exact Aug 15 separation agreement was for Roberts since the public statements allude to an agreement for the company to indemnify Roberts for certain matters, in addition to his 10M share grant in lieu of $250K severance.
I have commented on Infinium Labs before, so it sometimes begins to feel like cruel and unusual punishment to keep doing so, but the company keeps providing more grist for the mill. At least the stock market has recognized the issues, giving Infinium a $5M market cap, which is probably still too high for a company with $100K in the bank, $9M of short term liabilities, and little chance of ever being successful. Back to the mantra - do not fund as VC, invest in as public investor, or work at as employee, startup companies in the game console category.