AI
Friday, February 09, 2007 9:42:49 PM
!!! 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
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
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