NQ Mobile submits 2013 results; audit contains no adverse findings

By Caroline Salls

Pittsburgh, Oct. 27 – NQ Mobile Inc. filed its 20-F annual report for the year ended Dec. 31, 2013 with the Securities and Exchange Commission after an extensive review of its business and financial affairs, according to a news release.

NQ Mobile said the audited financial results contain no qualification and no adverse findings and are consistent with its previous financial disclosures and reports.

The company said the audit showed that NQ Mobile’s $283 million in cash and cash equivalents as of Dec. 31, 2013 was verified and found consistent with public disclosures, and major expenditures were confirmed as having been incurred for legitimate business purposes.

The company said its acquisitions were evaluated using reasonable metrics and internal due diligence processes, and those acquisitions have contributed to increasing NQ Mobile’s revenue and user traffic.

The audit committee was able to conclude that there was no evidence of an effort within the company to delete any documents relevant to a special committee investigation.

Additionally, NQ Mobile said highly specialized, forensic examination of devices where there was an indication that information might be missing was conducted and the examination protocol reviewed. As a result of this examination, many files were recovered and reviewed from the subject devices that were deleted before and subsequent to the publication of a Muddy Waters report but before the collection of data from those devices by the special committee.

The committee said none of these were relevant to fraud allegations or the special committee’s investigation.

“We are pleased to be able to return our full attention to growing our business and increasing long-term value for our shareholders,” NQ Mobile chairman and chief executive officer Henry Lin said in the release.

“During this extensive process, we have learned much about how we can improve some of our practices, including corporate governance, disclosure and internal procedures. We are fully committed to carrying out such improvements.”

In 2013, Muddy Waters Research issued a report stating that NQ Mobile’s largest purported revenue source, Yidatong (YDT), “is controlled by NQ, and its primary purpose is facilitating NQ’s massive fraud.”

In addition, NQ Mobile’s board of directors formed an independent special committee to conduct a review of allegations raised in a report issued on Oct. 24, 2013 by Muddy Waters that called NQ a “massive fraud.”

NQ is a provider of mobile internet services with dual headquarters in Dallas and Beijing.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.