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LOS ANGELES (CNS) - The Securities and Exchange Commission announced Friday that Calabasas-based Cheesecake Factory Inc. will pay a 5,000 penalty for making "false or misleading" disclosures about the impact of the COVID-19 pandemic on its business operations and financial condition.This is the first time the SEC has brought allegations against a public company for misleading investors about the financial effects of the pandemic.According to the SEC's order, the Cheesecake Factory restaurant group said in regulatory filings in March and April that its eateries were "operating sustainably," while failing to disclose that the company was losing roughly million in cash per week and had just 16 weeks of cash remaining.The order finds that although the company did not disclose the information in its filings, the group did share the particulars with potential private equity investors or lenders as it sought additional liquidity during the public health crisis.Without admitting the SEC's findings, the restaurant company agreed to pay the penalty and to cease-and-desist from further violations of the charged provisions. In determining to accept the settlement, the SEC said it considered the cooperation afforded by the company.A Cheesecake Factory representative pointed to a disclosure form filed Friday in which the company stated it was in full compliance with the cease- and-desist order and that the company "fully cooperated with the SEC in the settlement" without admitting or denying the regulators' allegations.The order also finds that although the March filing described actions the company had undertaken to preserve financial flexibility during the pandemic, it failed to disclose that Cheesecake Factory already had informed its landlords that it would not pay rent in April due to the impacts that COVID- 19 inflicted on its business."During the pandemic, many public companies have discharged their disclosure obligations in a commendable manner, working proactively to keep investors informed of the current and anticipated material impacts of COVID-19 on their operations and financial condition," SEC Chairman Jay Clayton said. "As our local and national response to the pandemic evolves, it is important that issuers continue their proactive, principles-based approach to disclosure, tailoring these disclosures to the firm and industry-specific effects of the pandemic on their business and operations. It is also important that issuers who make materially false or misleading statements regarding the pandemic's impact on their business and operations be held accountable."Cheesecake Factory had notified its landlords that it wouldn't pay rent on April 1 due to financial complications stemming from the coronavirus outbreak. A letter sent by Chief Executive David Overton to the restaurant group's landlords -- many of which are shopping mall operators -- was released publicly in March by Eater L.A.The company has 294 restaurants in North America, 39 in California and five in San Diego County.Its largest landlord is Indianapolis, Indiana-based real estate company Simon Property Group, which provides space for 41 Cheesecake Factory locations, according to the San Fernando Valley Business Journal."When public companies describe for investors the impact of COVID-19 on their business, they must speak accurately," said Stephanie Avakian, director of the SEC's Division of Enforcement. "The Enforcement Division, including the Coronavirus Steering Committee, will continue to scrutinize COVID- related disclosures to ensure that investors receive accurate, timely information, while also giving appropriate credit for prompt and substantial cooperation in investigations." 3725
LOS ANGELES (CNS) - A much-debated gas tax hike billed as raising billions of dollars a year for statewide transportation improvements will remain in place, with voters rejecting a ballot measure that would have repealed the increase.Proposition 6 would have repealed the hikes that took effect in November 2017, raising the tax by 12 cents per gallon for gasoline and 20 cents per gallon for diesel fuel. The increases included in Senate Bill 1, the Road Repair & Accountability Act of 2017, are projected to raise .2 billion a year, with the money earmarked for road and bridge repairs.Gas tax opponents gathered more than 640,000 petition signatures across the state in an initiative drive to put the repeal effort on the ballot. The drive was spearheaded by former San Diego City Councilman Carl DeMaio, and it was funded in part by Republican gubernatorial candidate John Cox.YOUR VOICE YOUR VOTE: See results of key races"The cost of living is already on the increase in California and families are struggling to survive. This is unacceptable," DeMaio said earlier this year of the gas tax hike. DeMaio and other Prop 6 backers contend that under the gas tax and vehicle registration fee hikes, the average family of four can expect to pay almost 0 more this year alone. A ballot argument co-authored by Cox in favor of Proposition 6 dismisses contentions that the gas tax funding is critical to fixing the state's roads and improving transportation in the state. "Don't be fooled by opponents who claim there is no money to fix roads if Prop 6 passes," the ballot argument states. "If the transportation- related taxes and fees we already paid before this new tax increases took effect were spent on transportation, the state would have .6 billion annually for transportation needs, without raising taxes."Opponents of the measure blasted the proposition, insisting that repealing the gas tax would eliminate funding for transportation projects statewide. In Los Angeles, a recent City Administrative Office report estimated that eliminating SB1 funding would cost the city .5 million in funding this fiscal year alone, while the county could lose more than billion.Gov. Jerry Brown, who championed the gas tax, has been vocal in his opposition to Proposition 6."The test of American strength is whether we defeat this stupid repeal measure which is nothing more than a Republican stunt to get a few of their losers returned to Congress," Brown said during a recent event at Los Angeles Union Station. "And we're not going to let that happen." 2585

LOS ANGELES (AP) — Video released Tuesday shows the dramatic moment firefighters rescued three people and two dogs as thick smoke and flames approached in Southern California.The Los Angeles Fire Department video shows one of its helicopter crew rescuing the group from a mountain peak as a humongous wildfire bore down, coming as close as a football field.The Nov. 9 video was taken as pilots David Nordquist and Joel Smith battled the Woolsey Fire that was raging through the Santa Monica Mountains toward Malibu.The crew was making a water drop when it was asked to rescue the group. The pilots headed that way despite dwindling fuel.With smoke darkening the sky, they hunted for a landing spot among antenna towers, service buildings, cars and vegetation.They finally found a tight and tricky spot on top of a ridge and Smith got out to help the people and their pets, including an English mastiff who was afraid of the helicopter and had to be coaxed by its owner to get on board.Once everyone is safe inside, the pilots take off, with Smith remarking: "Ugh, that was close.""That's enough excitement for me today," he said as they pulled away from the massive smoke plumes.Nordquist responds: "You and me both, brother."Los Angeles fire spokesman Brian Humphrey said none of the people or animals was hurt. The video of their rescue has gotten so much attention, members of the public have been calling the department to make sure everyone was OK and to commend the pilots, he said.The department's Facebook post of the video had more than 1,000 shares.One user wrote that she "kept having to wipe tears watching this!""Brave, brave, brave," she said. 1685
LONDON (AP) — Ireland’s Supreme Court has ruled that bread sold by the fast food chain Subway contains so much sugar that it cannot be legally defined as bread. The ruling came in a tax dispute brought by Bookfinders Ltd., an Irish Subway franchisee. The company argued that some of its takeaway products including including teas, coffees, and heated sandwiches, were not liable for value-added tax. A panel of judges rejected the appeal Tuesday, ruling that the bread sold by Subway contains too much sugar to be categorized as a “staple food,” which is not taxed. They said that the bread in Subway's heated sandwiches has a sugar content of 10% of the weight of the flour included in the dough, exceeding the 2% specified in the law.The law makes a distinction between “bread as a staple food” and other baked goods “which are, or approach, confectionery or fancy baked goods,” the judgement said.Bookfinders was appealing a 2006 decision by authorities who refused to refund value-added tax payments. Lower courts had dismissed the case before it reached the Supreme Court. 1085
LOS ANGELES (AP) — Rafer Johnson, who won the decathlon at the 1960 Rome Olympics and helped subdue Robert F. Kennedy's assassin in 1968, has died. He was 86. Family friend Michael Roth says Johnson died Wednesday at his home in Los Angeles. No cause was announced. Johnson was among the world's greatest athletes from 1955 through his Olympic triumph in 1960. The Associated Press reported Johnson won a national decathlon championship in 1956 and a silver medal at the Melbourne Olympics that same year.He lit the torch at the 1984 Los Angeles Games. In June 1968, Johnson was with Kennedy at a hotel in Los Angeles when the senator was shot by Sirhan Sirhan. Johnson, along with former NFL star Rosey Grier and journalist George Plimpton, helped in subduing the shooter. Kennedy died the next day.According to the Associated Press, Johnson called the assassination “one of the most devastating moments in my life.” 925
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