Replies to post #124922 on DD Support Board and Research Team

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I responded to this earlier today, to find it never posted (nor deleted, just server error).

I noticed the P/L nor the cash flow does not match. Also, there is no revenue line. Trying to find the lawsuit settlement pursuant to the Notes. Further, the related party transactions are troubling. I did ask a colleague about the 12% loans from the CEO in days of free money, however, it got mixed opinion on that as the company is not credit worthy of 4% credit. So it could be argued a higher rate. However, the CEO's boat moving product around as a related party payable on a company with no revenue jumps out as an issue. Curious what function the CEO's boat company does for the company and if they have any other clients. Also, if the boat company is charging market rates and who is benefiting. Often and auditor will want to audit the related party entity to determine the concentration of the relation by and between the two.

I had a client that was in the marine industry and trucking industry, clearly transportation. The client was selling the marine company but not the trucking company. Our team was forced to furnish the auditor financials on both companies separately for audit to determine the impact of the company for sale by the trucking company which was owned by the same person. Also, the buyer wanted to ensure the valuation was accurate, should the buyer use a different vendor.

Something is strange here, but I will have to look into it further, tomorrow morning.