SK3 Group Inc. (SKTO)

[I-Glow]

let's take a closer look at the following:

100 million by 2015? unbelievalbe number!

Now, I agree it is a unbelievable number.

Because it appears that you didn't look very closely at the financials - if you did you would have seen the problems with the $52 million in AR/Revenue.

First, you would have seen the $25 million impairment to the AR - or SKTO has already written off $25 million as bad debt.

In the Q3 notes SKTO had a formula of impairing the AR - in the annual report it is missing.

But we know from the Q3 that the "revenue" was reported at $36 million and they wrote off $12 million as non-collectable.

So, 1/3 of the AR was bad debt in Q3.

In Q4 or the annual report we have $25 million written off - or 1/2 of the AR is now considered non-collectable.

And further inspection of the financials reveals that $27 million of the $52 million is Receivables.

The AR collected as stated by SKTO for the entire year is only $275,000 or less than 0.5%.

And that is a disaster.

IG