AVT Inc. (fka AVTCQ)

[TNGN]

the intangible assets figures can be found in the most recent 10-K and can be compared with the interim financial report disclosed in Sep 2014.

End 2011 10K:

http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=8544701

property and equipment: 4,519,711
Intangible: $9,352,467
Good Will: $1,048,865
Other Asset: $1,580,922

Accumulated Deficit: $5,205,935

Interim Financial report (June 30, 2014):

http://www.otcmarkets.com/financialReportViewer?symbol=AVTC&id=126902

property and equipment: 3,209,123
Intangible: $4,885,168
Good Will: $0
Other Asset: $0

Accumulated Deficit: $24,159,726


You can see intangible/goodwill was slashed by more than half with no explanation. This is probably because the new auditors reevaluated various transactions and forced the write down. At the same time the accumulated deficit mysteriously increased by $19 million.


All of this while a rosy picture have been painted by AVT management:

2014 revenue projected to $25-35 million.

http://www.otcmarkets.com/stock/AVTC/news/AVT-Forecasts-2014-as-Record-Breaking-Year?id=74047&b=y


The disclosed revenue through the interim financial report is $3,543,453 for the first 6 months of 2014. This is a annualized revenue of $7,086,906 which is 80% below their expectations.

Very disturbing.


The potential transactions with SWI Trading can be confirmed in various 10K too.


It looks like AVT purchased vending routes and AC Mexican Grill from SWI Trading.

Also the initial reverse merger valuation should also have been out of the money. SWI Trading is involved in this process too, but there are not enough information to understand exactly how the merger happened and at what valuation.

I really hope everything is ok with this company.