I need some advice immediately. Can anyone help?

Have any of you received any emails yet? I wish BOB would check his inbox already! :)

I'm sorry, but I have to ask... Is it the TA's fault that this information is not available?

I already mentioned this on the other board, but why anyone would want to see UAF's at this time of year when AF's s/b right around the corner is beyond me.

Also, stay patient on these. Us auditors are working our cute little buns off trying to get these reports out. :) But... there's only so much we can do. Companies like this with a new controller in place, first year audits, perhaps even multiple years... IMHO it'll be weeks.

What's WAG? Excuse the ignorance here... could be that it's still early for me... heck, I'm still in my PJ's over here and I already feel like I'm at a tennis match.

Dilution.
Buy Back.
Dilution.
Buy Back.
Dilution.
Buy Back.

I'm going to need a masseuse for my sore neck after this! LOL

Robo...

You are correct. Both sides are starting to sound like a broken record. Give me something to chew on BOB! I'm bored... :)

Thanks Penny! You need to have one around here... sometimes there's just way too much testosterone flying around... LOL!

Remember people: keep smiling... It's all fun and games until someone loses their shirt! :)

Good night ICEY... stay positive and have good dreams! You just never know what may happen. :)

ICEY...

Why someone would look forward to UAF's at this time of year is beyond me... considering AF's s/b just around the corner... assuming, of course, that they are coming. I'm not as unconvinced as you are about that, yet still maintain my professional skeptism.

And I never said they were worthless ICEY... you can still gleen some information from them. Now, whether one believes everything they read is another matter entirely. IMO, I would not recommend anyone put their hard earned money into ANY company without doing proper DD, which includes obtaining third party evidence wherever possible. I know, I'm a dreamer... but that's what to love about me :).

Furthermore, these UAF's may not be properly GAAPed (did I just make up a new word?), but we can still learn from them. It also does not necessarily mean that the big guy is up to no good either. But it doesn't show he isn't either. Some of these inconsistencies are common, some questionable yet still plausible mistakes.

Again, IMO go with your gut and your other DD until more info comes along. The UAF's on their own just don't provide enough clarity to have me jump in with both feet. You all are the risk takers, and I admire you for that.

Hi ICEY...

My take on the UAF's is that there are definitely inconsistencies and questions that arise in regards to the propriety of certain expenses and accounting treatments of revenues and accruals. My previous posts will show most of the questions that I have from an auditing standpoint.

The audited financials, if and when released, will IMHO look much different. Whether that is positive or negative is difficult to tell. The company's new controller certainly has her work cut out for her.

As to the timing of the AF's mentioned previously, I am currently trying to juggle 7 audits at once because you investors keep whining for your AF's. So calm down a little and give us auditors a break! LOL... just kidding. :) Really though, they probably won't be out for weeks IMO.

WoW... you make such a strong argument robo... LOL!

I see you are a man of few words... kind of like good ole Bob. :)

LOL! Paying money to a service just to ignore people?? ... too funny

Well, I don't know Penny... those first two guys are kinda cute don't you think? LOL!!

Boy the board is quite today... I wonder what everyone is doing... LOL!

Penny... do you by any chance have the link so I can go see for myself? I think BOB had it posted once, but can't find it... and now that I'm no longer a premium subscriber, I cannot PM. Thanks for your help!

BKYI

While the Fire-RMS deal does appear to contain more wireless technology than anything else, this company does provide biometric technology. I will be keeping an eye on Bio-Key, and its recent developments.

"The company's high-performance, scalable, cost-effective and easy-to-deploy biometric finger identification technology accurately identifies and authenticates users of wireless and enterprise data to improve security, convenience and privacy and to reduce identity theft."

http://www.bio-key.com


Interesting recent developments:

- BIO-key Strengthens Balance Sheet; Share Count Reduced Potentially By 9 Million Shares

- BIO-key(R) Announces Additional Contracts for Recently Launched FireRMS Mobile(TM)

- Bio-key International offers to buy Comnetix in deal worth US$18.2 million

These all seem like positives to me. So why are they red today? They just released their 8K... I'm going to go have a look. Please let me know if you've performed any DD on this company.

Here's their chart:

Ahh good ole Jack heading his ugly rear again... LOL

pfrenz...

who are you talking about?

LMAO brentjanice!

gooooooo dallas!

I tend to agree with you heenster that it seems like a longshot for CKYS to buy SQUM... but what about the other way around? Although not sure what CKYS has to offer SQUM... just a thought.

Yes! This was the article I was talking about before. Someone on here mentioned that it was Oct. 2006, but this does say Oct. 2005.

Woah... easy now.

Alright! Not even ordering off the dollar menu... sweet!

So sorry for your loss Red.

Take care,

~ C

Thanks seabiscuit... nice alias :)

Can you direct me to that filing? I guess I could go get it myself, but if you know the link offhand, I'd appreciate it. Thanks!

I think you may be overestimating the cash on hand IMHO... 12M NI does not translate to cash on hand at all... also, I think most here have agreed that since that 6mo. is unaudited, that NI won't hold true. If those numbers in the 6mo. are correct in regards to payables and cash, there won't be any buying outright of anything... again, this is just my opinion. :)

Nostoksrallgoodorbad -

Thanks so much! I appreciate it...

Okay, why AU up to 3B? Any word from the company on this? Ah, buying SQUM... interesting. Wonder how they did today, will go see. Thanks again!

~ C

Really? Why?

OK, it's been one hell of a day... I just had to throw out a client's entire inventory count... god I feel aweful...

And so now, after staying at the client for 5 hours longer than normal, I have ~342 posts on this board that I have not yet read. I have been curious to find out what happened today with CKYS. Anyone care to save me a heck of a lot of time and give me a brief recap/tell me of any developments?

I know I know, do your own DD... can someone give a girl a break? :)

Take care,

Cynthia

LOL easy!!

"... not listen to me cause I change my mind frequently and sometimes for no apparent reason."

love it!

I would not suggest that any of my clients close their books without first reconciling their cash. However, in this day and age, this can be done on a daily basis as daily online statements can be obtained.

That being said, you had mentioned working for a 2B division who closed in the first week. I just wanted to say that this is possible, and especially more probable with the bigger firms who can extend the resources to get it done. In cases like these, I would expect to see several audit adjustments in the areas of cut off and AP. Is this what you experienced?

My guess is that if anything is closed and audited over at CKYS, then it will be released. I don't know how they are doing it over there, but from my perspective it would be much easier to audit 2004 first before 2005 and 2006... because of the rollforward. I can also understand why it would take longer to get to the 2004 audit... especially for a young firm who seems to have a lot going on right now.

Going -- You need to go back and read some of my and others' previous posts. But generally, IMO revenues will go down and so will COGS, liabilities will go up, and there may be some reclass items. NI IMO will go down. But this does not mean that EPS will look bad... to that end, I don't know and have not completely done the whole DD on it, as others have for us already, and I can see the trend in the FS.

Audited numbers for 2006 are done? How can this be possible when it's only Jan. 3??? I bet they haven't even closed their books yet.

Take care,

~ C

WTG Heenster! What else is in that crystal ball of yours?

Here here jeanette!

Just think of cash versus accrual books as either having timing differences or not. (And this is generally speaking, by the way).

So, if you look at a BS and it has AR items or AP items, you've got accrual basis books, okay? (Again this is generally speaking, and just because the books are on accrual basis does not necessarily mean they are GAAP).

Also, as to the ee workforce... yes I have seen companies try to do this before to avoid those taxes. However, most in assurance work would probably advise their clients against this treatment as it probably wouldn't pass an IRS audit. There are specific criteria to follow in determining whether someone is a contract worker... for example: does the person make their own hours, do they purchase their own supplies, etc.

And Danno did do a great job of explaining cash basis.

As to the 25MM, IMO this should be recorded as deferred revenue... which is also accrual basis.

Thanks for the post! ~ C

I wouldn't record this revenue until January 1st. The reason is that IMO the revenue isn't realizable until ownership passes.

What if there was a fire in the building on the night of New Year's Eve? That income you booked on 12/31 is no longer realizable is it?

This is how I would do it.

Take care,

~ C

As I stated earlier, I am not a QuickBooks expert, and it would depend on how you are using the program (I had a client once do everything through journal entries... scary, eh?). That being said, I believe that if QuickBooks is being used in its proper manner, income is recorded at the time of invoicing... but when in the control process is the invoice being generated? (I had another client who would create the invoice right away... it was a nightmare!).

If the company is on a cash basis, they would book the income and create the invoice at the time payment is received. This is not GAAP.

And again, the expense occurs at the time of occurrence not when the actual payment is made OR when the bill is received... it is at the time of occurrence. The document that is usually used to create this expense is a BOL, or other receiving document. This creates an unvouchered AP. Cash basis would be when upon payment of course.

No, you're correct, there does appear to be GAAP differences, I don't think anyone on this board disputes that fact. We do need to keep in mind that those are unaudited financials, and being the smart and savvy investors that we are, we do our DD and come up with our best guess of what the AF's may look like, and come to a decision from there.

Thanks,

~ C

Right, both Rev and COGS would be overstated if misapplied, and so for our purposes here, you're going to have to back into the number you want in order to make an informed decision regarding NI and EPS before the AF's come out. I believe others here have already done that. But if you want me to spend the time doing it, I will.

It is all still speculating though, because I still need confirmation of the contract (although I'm leaning toward it being there than not personally), and would also have to take my information from heresay regarding what has shipped to this point.

Danno, thanks for the discussion... I like it very much.

You're right, an experienced accountant probably would not have booked the entire contract IMO. However, I just don't think they had that kind of experience at that time. The video I just watched (post #36846) I believe showed that their controller didn't come on board until Sept. 06. I also heard other employees saying stuff like "Oh I do a lot of things around here..." (employee base tripled to 35 in Sept)... my guess is, and this is strictly my guess, that they received a contract and got it on the books however they could. Also, I think JP signed the certification because he had to.

Having books "certified" by a CPA (not sure what this means) can become quite costly. Trust me, none of my clients are doing this. They may call for advice from time to time, but I'm not certifying anything on a monthly basis... and wouldn't... couldn't in fact as the auditor. If you're talking about a compilation, then yes, some companies will outsource this function to provide the company with monthly/qtrly financials.

I don't know many contract labor vendors either that would defer that much. That's one reason why I agreed with a previous post that suggested that these may just be misclassified exec / exempt. I see contract labor being called salaries A LOT... this is a common error.

And I agree, the contract was probably booked incorrectly.

LOL... and that's why I'm here curtbs... to learn from all of you.