KGIC Inc LGLTF

Q3 Review

[Iceman2000]

I just went through the last reported Quarter.  Q3

I noticed several red flags wanted to know if anyone can provide feedback or comments

Red Flags:
Accounts Receivable.  4M past 90 days due. Same with 2013 Q3, while allowance for doubtful accounts is only 200k.  Distrubing as there was a -4M working capital deficit over previous year.  And same for the 2013 Q3.

Growing Goodwill and Intangibles.     reported as 37M at Q3 tangible assets 18M.    Tangible assets grew less than 2M, while intangible grew by 8M
Outstanding shares grew by 12.7%, and much the same for previous two years.

Something is up.  IMO either overstated accounts receiveables (or false revenues), overstated purchases, and issuing shares to cover up.  Will see in couple weeks.  

anybody else see any red flags

[kim2015]

I saw the red flag in the following areas: Despite sigificant Profit quarter after quarter, less than $300,000 cash in bank.  Thus, the Company needs to raise new capital every 90 days by ways of Share Issuance, Convertible Debenture, Bank Line of Credit, then more Share Issuance totalling 180 million shares within 24 months. Acquisition of Korean based agents business using Accounts

[trac3]

Kim2015 Appreciate you excellent posts. 37 million Goodwill for this small cap company does appear troublesome as well as the 4 million plus previous outstanding receivables. Also quite agree a 5 week delay in reporting of the financials is not at all a confirmation of forthcoming good news. On top of that we are well into the sell in May time period. Sure doesn't look as if this dog will be