From the 10Q and corstat on Yahoo -
corstat is on top of everthing done by KNDI and seems to be the resident expert. I hope he does not mind that I post his Yahoo summary of the 10Q:
"KNDI reported their Q1 earnings last night and once again, Mr. Hu did not disappoint. Top line did exceed my upper level of my $6-$8 Million by coming in at $8,254,624. And as I suspected, due to non-cash charges for stock based compensation, a small loss of less than a penny a share was reported. But had this non-cash charge not happened, they would have earned .04 a share. And if you add back other non-cash charges such as D&A, the earnings would have come in close to a dime a share.
It is noteworthy that again, all of this business came for their traditional markets outside of China. Proving that we have a solid underpinning to the bright future that should now be starting in China.
What I find interesting was this comment which accounts for a majority of the GAAP earnings reduction:
“Selling and distribution expenses in the first quarter of 2010 increased to $852,326 compared to $86,184 in the prior year period, primarily as the result of a $780,902 option related expense for consultants hired by the Company to help develop the domestic Chinese market for its products.”
I find this of particular interest in that these consultants would rather take stock options in the Company then cash. Speaks very well, IMO, for what they see is in the future for KNDI’s stock.
Other than this statement:
"Additionally, it was announced that progress was being made on the development and construction of battery stations every five square kilometers in Jinhua -- another key element of the plan -- and that further announcements relating to this planned 300 square kilometer saturation would be forthcoming."
And this one:
"The outlook for our Company is brighter than ever," stated Mr. Hu, "with solid progress being made by our Alliance and, with the governmental approval we have obtained, our ability to also begin selling our COCO to domestic consumers. Plans in this regard are being formulated, with a particular focus on fleet sales to government agencies such as the Post Office, which we believe has had a satisfactory experience with the vehicles they were able to purchase from us several months ago."
Most of the other info is pretty much a recap of what exciting things the Company has already announced.
Just a reminder. Today is the last day of the ten day period for the PP recalculation of the conversion price. After today, all questions should be removed as to any negative influence the funding may or may not have had on the stock, and be replaced with the positive feature that the funds will now have the same goal as all shareholders and that is a much higher price. "
