Kandi Technolgies Corp (KNDI)

[scion]

We face risks related to the ongoing SEC investigation

In November 2013, the SEC Denver office informed the Company that it was conducting an investigation of the Company and made a request for the production of documents and information. The Company is cooperating fully with the SEC in this matter. The Company is unable to predict what action, if any, might be taken in the future by the SEC as a result of the matters that are the subject of the investigation or what impact, if any, the cost of responding to the investigation might have on the Company's financial condition or results of operations. A protracted investigation could impose substantial costs and distractions, regardless of its outcome. There can be no assurance that any final resolution of this investigation will not have a material and adverse effect on the Company's financial condition and results of operations.

FORM 10-K
page16
http://www.sec.gov/Archives/edgar/data/1316517/000106299314001368/form10k.htm

SEC probe of Kandi Technologies has risen to a formal investigation

Posted on March 28, 2014 by Chris Carey

The Securities and Exchange Commission is conducting a formal investigation of Kandi Technologies Corp. (Nasdaq: KNDI), a Chinese company that has been the subject of several Sharesleuth stories.

Kandi did not mention the investigation in the press release it issued last week to announce its fourth-quarter and full-year earnings. Instead, it disclosed the probe in its annual SEC filing, in the middle of a long list of potential risk factors.
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http://sharesleuth.com/short-takes/reverse-mergers/2014/03/sec-probe-of-kandi-technologies-has-risen-to-a-formal-investigation