Ants, SEC Reach Accord Over Reporting Rules

Ants Software Inc., which didn’t file quarterly or annual financial statements for 10 years, disclosed in a regulatory filing Tuesday that it reached a tentative settlement with the Securities and Exchange Commission involving violations of federal reporting rules.

In its statement the company said the SEC was preparing to bring a civil suit charging the violations, but has agreed in advance to settle. The company said it wouldn’t admit or deny charges.

The Burlingame, Calif.-based company, which says it has developed software that speeds up data processing, also disclosed it has only enough cash to last through October. Ants, which has never reported revenue and said it expects no sales in 2001, had $1.7 million of cash on June 30.

Ants said its second-quarter loss widened to $1.2 million from $1.19 million in the year-earlier period. The loss per share was 8 cents.

In January, 2000, Donald Hutton, the company’s largest shareholder and former chairman, falsely identified himself as a certified public accountant in an SEC filing. That prompted the resignation of Jaak Olesk, the company’s outside auditor. Ants said the filing was a mistake.

Ants shares (ANTS) fell 5 cents to $3.35 on the OTC Bulletin Board on Tuesday.