AB International Group Corp (ABQQ)

[doesitreallymatter]

I would have posted yesterday, but I've been laughing almost uncontrollably since I skimmed their 10-Q that they filed.

First of all, let's congratulate ABQQ. They made it. Over 1 BILLION shares outstanding as of yesterday. Great job.

Let's start with the balance sheet. Cash went up. Good for them. Due to stockholders went up over $500K. Just goes to show Deng Dong is even dumber than we thought he was by putting money into a loser company. They probably put the money in out of pure embarrassment for the plummeting stock price over the last 2 years.

Ah, the income statement. I laughed so hard I almost peed myself. Magnificent. Losing $1.3MM on $535K revenue. That shows real talent. They pretty much did the same Q2 as they did Q1. Which means they didn't learn anything from the first 3 months.

The statement of stockholders equity is a mess. The presentation is horrible. Seriously, a brand new staff out of school could do a better job. But, there are three eye catchers for me. One, the issuance of preferred shares. Didn't they say no more issuance of those? The big one though is that the 171K shares of preferred converted into almost 300MM shares of common. Second, the sale of 200MM shares of common. I'll give them credit, they got $0.0007 per share, which is 2-3 times what the current stock price is. Lastly, the dividend. That is a real kick in the teeth for investors.

Moving onto the statement of cash flows. "Executive salaries and consulting fees paid in stock." So, if they had paid what they should have paid in cash, they'd have almost no money left. Got it.

Of course, the notes give some good insight. FN13 says it all. ABQQ continues to go down the road of chasing IP revenue by buying rights for a segment of the business that lost $2.3MM in six months. Pure awesome.

That's your investment investors. And, the stock price is still way too high.