I asked a friend/investor to take a look at MVNT. What he did was reading the few press releases and then sift through te financials to see what he could find back. He came back with a dozen issues. Let me give you one example:
"Houston, TX, Jan. 07, 2020 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE -- Movement Industries Corporation (OTC PINK: MVNT) (the “Company”) announced today that it invested over $350,000 in new Computer Numerical Control (“CNC”) machines and used fabrication machines during the last week of 2019. The CNC machines were purchased through Velocity Manufacturing to increase........."
So the company MVNT invested 350K. You would expect to find an inventory of 350K on the consolidated balance sheet per 12/31/2019. It's not there. Maybe they just invested (and it's on Velocity's balance sheet). That's a possibility. But then you should find 350K on MVNT's revenue sheet. It's not there. Maybe they leased it? It's not there.
I specifically asked him to take a look at the relation with Velocity. The more PR's and company tweets you read, the bigger the question mark becomes whether Velocity is included in the consolidated MVNT fins or not:
"January 14, 2020 Good afternoon $MVNT shareholders, as we continue to work with attorneys and accountants to get filings current, our production has not stopped. In fact Velocity is on pace for its best quarter ever."
"07/31/2019 EDT Visual Healthcare Corp. (OTCPK:VSHC) acquired Velocity Manufacturing Corporation on July 31, 2019. Velocity reported revenue of $3 million in 2018. Visual Healthcare Corp. (OTCPK:VSHC) completed the acquisition of Velocity Manufacturing Corporation on July 31, 2019."
"Houston, TX, Dec. 19, 2019 (GLOBE NEWSWIRE) The Company completed its initial acquisitions of Hi-Alloy Valve and Velocity Manufacturing."
In same PR:
"One of the biggest efforts involved in laying the Company’s foundation has been the establishment of internal processes and procedures for corporate governance and the financial disclosure requirements to become a public company. Over the last few months, the Company has upgraded its Enterprise Resource Planning (ERP) system and the Company is currently moving all the operational data for its initial acquisitions into the new system. Since most of the acquisitions are established companies with long histories, this conversion process is taking longer than the Company had initially thought. The effort has also affected the Company’s ability to report its financial statements on time. For example, Velocity Manufacturing has hundreds of work orders from just the past few years that must be converted to the new ERP system and each of them needs to be reviewed for GAAP compliance.
If Velocity is not part of MVNT, then why do work orders have to be converted? I mean, MVNT probably has clients that don't have/use a ERP system.
The more I read, the more questions I have. Could be that "some adjustments" to the fins per 03/31/2022 resulted in major adjustments. Could be for the worse, but for the better as well. Openness about the relationship with Velocity would certainly help.
JMO (just wondering, no need to respond)
AI
