I don't mean to come off as a basher but I have a few questions for anyone that may have already contacted the company or is smarter then I am.
1. Whatz up with the negative value of the Encore Checking asset versus a positive value in the Encore Bank - 3247 account asset? IMO they need to clean up their bank account before publishing a financial statement. This just looks really bad, like the company can't keep their check book balanced.
2. Why can't they seem to get Account Receivables under control? I'm seeing 95% of revenues is now being carried as receivable which indicates that they must have a longers collection period then 90 days. Isn't like 60 days the standard? I see a Bad Debt expense that accounts for less then 1% of account receivables. They need to account for that somewhere in their financials so that we don't get surprised by a Non-Recurring Charge.
3. Should Advances to Affiliates be listed as a current asset? I view this more as an investment in K9 and should be listed as a longer term asset. No income from interest paid which indicates this not a loan.
4. What does employee advance mean? Not many companies out there loan money to employees and publicize it to the world.
5. I don't think the Goodwill is accounted properly. They paid a total of $467,360 for Workplace Screening Services, Inc. and they are accounting all but $10,426.78 as goodwill. Is that all this company was worth?
I'll have a couple more tomorrow as I get to the next page. I'm not trying to tear this company apart, but I would like to get a few answers before investing. Eventually I will get around to contacting the company if we are unable to come up with a consensus to any of these. Thanks.
