Any idea what this is? I received this in my email today from a poster on yahoo finance. Interesting topic though about the recent onslaught of law suits against KNDI. I wonder if any of this is true. Thoughts?
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Few days ago, I posted in response to the 8K Notice of KNDI having to Restate and file 10K/A on 2014 and 2015 numbers, that it was "Much Ado About Little". After sleuthing around with My KNDI Contacts, I now realize it was "Much Ado About Nothing".
The Company and its Auditor and Counsel once realizing that it had been given some erroneous date in 2015 from the JV which it innocently carried over to KNDI's 2015 Filing, felt it would be wise for the Company to Re-State its 2015 10K. The only reason 2014 was also mentioned to be re-filed was because of some comparison numbers would have been involved. While there was also some "cosmetic" changes that were also involved, they alone would not have required a Restatement. The Company felt obligated on the 73rd day, two days before the last day that they better warn the shareholders. So they Filed the 8k, only to find out the next day that the SEC decided that NO Restatements would be required after all. Apparently this based on two facts. One. the Error was really not KNDI's fault and had no effect on KNDI's prior reported numbers, and two, not significant to a point that it couldn't be corrected in the final 2016 10K.
Of course it was the filing of the 8K that caused the stock to crater and have a couple of dozen ignorant Law Firms put out their Advertising PRs.
So Yesterday, after wondering why no 10KA filed yet, I finally contacted Kewa. She explained the above to me so I told her the Company needed to file an 8K/A Amending the prior 8K with this extremely important point. Important to the many, including the Law Firms, who would be waiting for the "never-to-come" 10KA which in some cases could take up to a year to file. She told me she would check with Company Securities Counsel. Five minutes later she called me back and said that they could not do this since it was already "DONE" in the 2016 10K. Something I certainly missed, and she admitted she missed it Too. I would also surmise that a number of Law firms missed it as well in that at least a half dozen more joined AFTER the 10K was filed.
",,,This Annual Report includes restated results for the fiscal years ended December 31, 2015 and 2014. Separate audited financial statements for the fiscal years ended December 31, 2016, 2015 and 2014 of the JV Company, as defined in this Annual Report are included under Item 15 herein. We are not going to file an amendment to the annual report for the fiscal year ended December 31, 2015 on Form 10-K/A to duplicate the content of the Restatements contained in this Annual Report. This approach was accepted by the staff of the SEC Division of Corporate Finance. Quarterly reports for the year ended December 31, 2017 will include restated results for the corresponding interim periods of the year ended December 31, 2016..". (page 2, just above Part One)
The problem with this is that the ominous free standing 8K will forever be showing on SEC Edgar Filings as future investors do their Due Diligence on the Company. Without a Free Standing 8KA to Clarify, the odds that a serious Investor will find the above text in the 10K is slim to none. And even if they did, might not totally correlate it with the prior 8K since even this doesn't clearly show resolution with the 2014 mentioned in the 8k.
Bottom line is were it not for the "8K" filing, which has caused the stock dropping from 4.35 to 3.60, the 10K wold have been filed on time with little if any confusion, there would have been no Law Firms involved and after a pretty good CC, the stock would likely be a dollar higher now.
I have contacted a Company Director with the above problem and he sees the problem and will attempt to have it fixed. Problem is the SEC frowns upon Companies who file "Redundant Corrections" which it would be since they already told the Company and it was buried in the 10K.
In Wall Street Parlance; "You Can't Make This Sxxt Up"
