While none of us like it, it actually was done to save money -- not the few thousand for SEC stuff, but to actually complete the audit and that does cost significant $$. As an alumnus of Haskins & Sells San Francisco (a firm that is now part of Deloitte & Touche), I can state unequivocally that auditors are expensive, far more than $40k.

I don't base my assertion on things that I hallucinated, I simply asked Richard Marshall and he promptly responded (as usual when it is a factual question). Here is his reply from a few minutes ago regarding the status of the audit:

Hello Mr. xxxxxxx, The Company had engaged PwC in December 2012 to begin
the 2012 audit - they had begun initial work Dec/Jan and both Company and
PwC agreed they they'd pen down till April to complete the balance - we have
become a lower level client and less fees for them and so their time was
better served Feb Mar with other accounts at higher fees. The agreement was
that the'd have sufficient time to complete the work so that the Company
would be in position to file by the Apr 30, 2013 timeline. In March the DIP
Lender reduced the available credit/capital to the Company and only expenses
accounts relating directly to CCAA and ICSID could be paid.

Work will need to be completed to finish the initial work by PwC. I'm
advised that after the next CCAA Hearing and budget approval and draw down
discussions the Company will raise the desire to fund and complete the 2012
audit.

Richard