Padding a provision or 'made in China' worries?Take a look at their financial statements, specifically warranty costs.
Sales 2014 - $1.5M
Warranty expense - $61K
% of sales - 4.1%
Sales 2015 - $6.0M
Warrany expense - $653.5K
% of sales - 10.8%
Why would they up more than double the provision? Manufacturing concerns? Padding a provision?
Either way, it's a red flag.