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This whole CKYS fraud makes me wanna puke.
I'm just holding on to it in case one day I might meet JP face to face. Then I'll hurl it all over him, and hand him my used toilet rag to clean himself with.
CBK
Catalyst EV Technology looks like spyware/adware to me.
Request stock certificate
What would happen if all of us stock owners would request a certificate? What would that do to the naked short holders?
CB
With stated annual payroll at 187k, I would guess between 4 and 6 employees. But no way could there be 10-20, unless they are all living in poverty.
CB
Questions for JP, TH, and JK (CKYS Directors)
I wish I had gotten this list together before dcbass and the other guy went for their visits.
1) You show $62,000 in professional fees for web development. Most companies could build a world class web site for less than $10,000 what's up with that?
2) You show no accounting fees on your P&L. Why does your web developer make more than your accountant?
3) You obviously don't manufacture any of your products, so who does? It's okay, we just want to know who.
4) When, specifically what date, are your audited financial statements going to be released? Can you get a firm date from your accounting firm?
5) When will you hire a bookkeeper with enough experience to keep your books in good enough shape that it won't take more than 3 weeks to audit?
6) You say you have patents or patent applications. Under whose name? What entity? Do you have a patent number or application number?
7) It appears you don't sell directly to the DHS. Who do you sell through? What third party?
8) How much of the 25 mil PO have you received in payments and how much is still held in A/R? Can I see a copy of the PO?
9) Where's the $25,000 time share? If you own a shared office condo, what are you paying rent for?
10) The $15,000 auto expense, shouldn't that be depreciated? Or is that a lease that expired in June, since we saw no increase from June to December?
11) Seeing as you have retained earnings over $12 million, how much income tax was paid for 2005? 2004? ???
12) You show inventory asset of $39,424. I assume that's a warehouse full of USB drives or KeepSafes. Where are they? Can I see them?
13) Payroll expenses are usually subbed to include Gross, FICA, Fed Tax, State Tax, FUTA, SUI, etc. Can we have any of that info? How many employees on the payroll?
14) Assets are usually depreciated, where is the depreciation expense? Did your accountant depreciate anything? Is there a depreciation schedule?
I could go on, but if I could get a satisfactory answer to even half of these questions, I might consider staying in for the long haul. Otherwise, I will dump come 8:00am 2/20.
CB
Headed to a Mardi Gras parade. Talk to y'all in the morning.
CB
We're holding our breath here. Does DC want a bunch of suffocation deaths on his hands?
CB
Possible scenario
The 25 million PO was booked as sales in January, but was to be delivered over the course of twelve months with payments spread over 12 months. Strange, I know. But I have heard that when you deal with the government, it can sometimes take 120 days to be paid.
So if they delivered the first goods in March, they may not see the first check until July. And goods delivered in October may not be paid until the following February.
CB
Where is DCBASS? This is a waste of space. I'm starting to wonder if he even went to Utah.
CB
Nope, SEC not concerned with cell phones. But I am. To rack up 15,000 in cell phone charges, you got to spend a lot of time on the phone with the Chinese. That's over $1200 a month. That's a lot of phone calls, even talking a lot with the Chinese.
Accept that they did have PRs out stating that there were additional orders to the original 25 mil. If the PO's are still coming in, then the A/R will be a sliding window.
CB
I may clean up that review and post again tomorrow for all who have gone to sleep.
CB
!!! Financial Review !!!
I decided to do my own audit of the released UAFs. For my own disclosure, I am into CKYS for about $2000. And yes, I foolishly put my money down before scrutinizing these documents.
After looking closely at the UAFs, I see what is at the very least sloppy
bookkeeping. I'll list below some of the things that stand out as odd.
To start, I will say that it looks like a complete amateur was handling bookkeeping for the first half of 2006. It looks like they tried to tidy things up a bit for the year-end P&L, but it's still a little sloppy and terribly inconsistent. I would say that N Thomas Heaton ~ CFO needs to go back to financial school.
Others have mentioned that it's odd that you would have 25 mil in sales and 19 mil in A/R but on an accrual statement, which this is, if you sell a box for $1000 and you get paid a $100 deposit, you book a $1000 sale and $900 accounts receivable.
For brevity, I will refer to the first half financials as H1 and the year-end financials as Y2K6
First the P&L:
Income -
- Discount is non-negative on the June '06 P&L, that doesn't make sense
- Sales up by 8.3 million, nothing wrong with that
- COGS up by 5.5 million, nothing wrong there either
Expense -
- Aquarium service and supplies, what's that? It is removed from Y2K6
- License and Permits for H1 = 1000 gone down to 582 for Y2K6
- 494,000 for consulting fees? I'm in the wrong business. This could be ADC.
- Web development: 62,292.00 ?! Our money is not being spent wisely!
- Reimbursed Expense: 70,662.59 - What is that? an expense that is reimbursed should show in income, but should not be included in sales.
- we have security of 97.97 and an alarm system at 287.99 on the H1, which have disappeared from the Y2K6
- No utilities in H1, but 1156.40 in Y2K6, My electric bill at home is over $200 per month so there's something up with that.
- And this is a doosy: 15,019.35 for cell phone charges? For H1 it was only 100.00, so we got us an expensive cell phone here.
The Balance Sheet:
- the 25,520 time share on H1 was re-labeled as real estate on Y2K6 are the headquarters in a shared office building?
- Accrued salary is re-labeled as deferred compensation, this would explain the relatively low payroll figure on the P&L
- Y2K6 retained earnings: 12,737,353 ???? What's up with that? That would imply 12 million in income over the past five years.
The aforementioned oddities are only my observances. Take from it what you will.
CB
Can we get a patent number? I've searched and could find no patent registered to Cyberkey or Jim Plant. If it's registered to an agent, who is it. We need a patent number.
CB
75,000 Too Much
Naked Shorting can only be done by brokers or market makers. A naked short cannot transact by Joe Blow at a computer trading through etrade, so it can't be done by some terrorist trading from another country.
The simple act of shorting a stock has nothing to do with naked shorting. And naked shorting is illegal in the pinks.
CB
This PR: http://www.cyberkeycorp.com/press_20060804.html clearly states, "CyberKey Solution's initial $25,000,000 purchase order from the Department of Homeland Security was for 150,000 CyberKey units, of which 63,000 have already been shipped."
It's either true, or it's an outright lie.
CB
A purchase order becomes a binding contract upon shipment of the goods.
CB