My old and new company are very small companies, owned by the same people. I think they may not really have that kind of document USCIS is looking for, that is why my case is denied.
But the merge itself is legal in our state ( NJ ). The new company has been paying me and other engineers ever since the merge, and filed tax return.
Also, my H1B is transfered to the new company, this is already a fact that the new company is assuming the immigration responsibilities from the old company.
My case is denied in NSC, heard it is pretty tough there. Much better in TSC.
I guess I will have to fight all the way to the federal court.