I think this deduction includes the cash transfer mess. The SEC did say that the company was unable to provide independent verification that 63% of the cash involved in the questioned transfers was returned to FUQI bank accounts (we are talking about $83M in cash not verified to be returned).
Probably this is why they ultimately had their stock revoked as the cash is missing!
Marcum is still working on 2009 as it's continuing were SEC lost patience.
Have to watch for the audited financial statements 2009-2013! I talk to #$%$. senior auditor that works in a large CPA firm and mention 5 years and still going on the same audit. He said the books must be really scrabbed to take that long. I ask what that means? He said the source documents - working papers and documents are either missing or have to be sorted out and recreated to finalized the audit. It happens when their is a fire. bad bookeeping or destruction of the documents.
I hoping for at least the 2009 audited financial by end of 2013! If that happens; we can then project out to 2013 the figures in each major category.
Love to know their A/R, inventory and liabilities and on the income statement - expenses.
while other jewelry companies are making money but this company is losing money, the cash has been reduced so much. There is no explanation about the reduction of cash. Something is rotten here. I don't have much expectation for this management. US investors have no way to control or influence the company.
I agree that it doesn't look good. However, keep in mind that the company was always cash flow negative when they were reporting financials. This was a big concern at the time as it meant that they need to use cash to grow. It makes sense in that if you double the retail store count, the company would need double the inventory to support the sales from the added stores. We just do not know the value of the inventory they have on the books.