KANDI TECHNOLOGIES GROUP INC (SYMBOL: KNDI)
This brief Instablog questions the recent 10-Q filed ( 16:08:03 2016-05-10) by KNDI for the Fiscal Period Ending March 31, 2016 (2016Q1).
Should Investors expect a second restatement? (I think so)
Do I trust KNDI financial statements? (what do u think? … lol)
2016-05-10 at 07:13:44 KNDI issued a PR disclosing the" Kandi Technologies Reports First Quarter 2016 Financial Results" (Filing here).
After a look at the Financial Statement I quickly realized Numbers did not add up: $34,781,767 was missing from the Cash Flow Statement (CASH FLOWS FROM OPERATING ACTIVITIES Section):
Shortly after I tweeted these findings, the Company came out with an 8-K/A (2016-05-10 14:29:20) and issued a"Correction: Kandi Technologies Reports First Quarter 2016 Financial Results" (Filing here), where it admitted that:"In the press release issued at 7:00 am ET, "Amount due from JV Company, net", "Land use rights, net", "Construction in progress" were missing from Balance Sheets and "Due from related party" was missing from Statements of Cash Flows due to the table format adjustment."
I checked the numbers once again, and this time the numbers reported in the the Cash Flow Statement (CASH FLOWS FROM OPERATING ACTIVITIES Section) added up. What I found however, was that the Numbers in the CASH FLOWS FROM OPERATING ACTIVITIES Section do not add up with the numbers reported in the CONDENSED CONSOLIDATED BALANCE SHEETS.
The Company added a line to take in account the Change in "Amount due from related party" ($ 34,781,767), so that the Numbers in the CASH FLOWS FROM OPERATING ACTIVITIES Section added up to the previously disclosed Net Cash used in Operating Activities ($ -6,153,618).
However, if you look at the CONDENSED CONSOLIDATED BALANCE SHEETS, the change in "Amount due From Related Party" was $ -35,020,549.
In the CASH FLOWS FROM OPERATING ACTIVITIES Section, the Increase or Decrease over the Period (Quarters in this case) should be used.
How is it possible that the Chance in the CONDENSED CONSOLIDATED BALANCE SHEETS for "Amount due from related party" was$-35,020,549 … while the Number used for "Net Increase/Decrease in Due From Related Party" CONDENSED CONSOLIDATED BALANCE SHEETS was$34,781,767?
As I just showed … Numbers at KNDI just do not add up! … Good luck longs trusting this company. At best … very questionable Accounting skills … at worst ... well … I let u guess what's on my mind!
Do not trust me & do not trade on what I write on this Blog or Twitter. I might be flat wrong! Do your own DD and act consequently.