Also the announcement about audit report is from company and not...

Also the announcement about audit report is from company and not ASX. Another fact it that this announcement came quickly after couple of please explain queries from ASX. Last few quarters they have been talking about going concern but at the last moment Fred loans some money to clear it. This time he didn't loan the money on time or may be planning not to loan any more money. Therefore the auditors would have said about putting this issue in audit report and not giving a clean report.

Going concern problem is faced by a lot of companies that are developing something, waiting for approvals, building a mine or are not break even at current sales level. They all do CR and similar things to raise funds on timely basis before auditors start scaring. Looking at last few months it doesn't look like Fred tried to raise money to fix things and in fact has been against CR for a long time. To me it looks like he knows how to fix the issue and can do it himself but not doing it just yet. Anyway nobody can sue him for overreporting or underreporting of what's happening at the moment while the company is in suspension. May be he is trying to put pressure on EM. If AKP goes in to liquidation and patents are sold there is a good chance that the new buyer will not go with EM and they might lose some of the investments they made for AKP chip production. Well that all my guesses about this strange situation.