E-Waste Systems Inc. (fka EWSI)

[jdubb75]

Found it...it's in the first paragraph of page 10 under "risks associated with our business"

They expect the China consolidation issue to be resolved in the second quarter of 2014. We have 2 1/2 months left in the second quarter. If this does gap down like a rock and some are able to pick up crazy cheap shares, can you imagine waking up to a filing stating the China consolidation is back in place. Talk about a rocketing pps...to go from being able to report $860k (or whatever) to potentially $12-15M overnight. That would be a crazy gap up!

In 2013, the company acquired 100% of Surf Investments and entered into a series of lease arrangements through XuFu which was previously consolidated as a Variable Interest Entity. While the lease agreements are still in force and generating revenues, the company is working with XuFu to ensure that sufficient operational and financial controls are in place to warrant consolidation and has de-consolidated for the purposes based upon the suspension of the management and related agreements creating the VIE. It is expected that this will be resolved in the second quarter of 2014.