Remember last month when Koss decided to file their 10-Q without financial statements? At the time the company said it was "due to delays relating to certain previously disclosed unauthorized transactions.” In other words, we got ripped off so bad that we're restating financial statements for half a decade and it isn't exactly something you can whip up like a batch of maui wowie brownies. The Nasdaq has taken note of the slight delay and has said if you don't get us numbers by June 30, you'll be on the pink sheets with the likes of Lehman Brothers. CEO Michael Koss has assured everyone that it won't come to this but obviously we'll have to wait until the SEC posts the filing. If that doesn't happen, you'll be able to add "Koss Delisted by Nasdaq" to Suz's list of destructive accomplishments. Koss gets warning from Nasdaq [Milwaukee Business Journal]
Related Posts
Now the Profession Is Losing Experienced Accountants Too
Here we are again talking about the accountant shortage. Don’t blame me, blame WSJ. Mark […]
Here’s Some Stuff You Didn’t Buy at PwC’s Lehman Brothers Auction in London
Gosh, team. It’s been over two years since Lehman bit the big one and now all that’s left is bits and pieces (Barclays, pink sheets, Dick Fuld’s stonewalling testimony) and charges from the SEC that could eventually see the light of day (unless the sun burns out first). Oh! And Ernst & Young. They’re in the mix too, although some people we talk to have their doubts about any repercussions.
Anyhoo, there was a big auction at Christie’s in London today directed by the newly-branded PwC. After everyone got done ribbing the P. Dubs partner in attendance about the Atari design, the bidding started. Here’s a little taste of what’s been sold so far, courtesy of the Times:
• Corporate Sign from Canary Wharf building – £42,050. Bidding started at £5,000
• Gary Hume’s Madonna – £120,000 (most expensive item so far)
• A collection of five maps from circa 1720 – £1,875
• An 1870 collection of the works of one Bill Shakespeare
• Two etchings by Lucian Freud
• Photographs by Sebastião Salgado
• A 43.5-inch painted pine model of a 62-gun ship
Overall, the auction has topped £600,000, according to Accountancy Age but is still rising. You can probably still get a bid in if you hurry.
New Orleans Hornets’ Audited Financial Statements Leaked
While the House of Klynveld is enjoying their town hall circa now, we’ll share you the latest scoop from Deadspin, who has published the audited (courtesy of KPMG) financial statements of the NBA’s New Orleans Hornets.
We’ve skimmed the financials, noting some interesting items here:
• In 2009, the franchise paid $115,000 for their audit, an additional $10,000 for “accounting issues” and $35,000 for tax compliance services.
• The team has a partners’ deficit of over $80 million thanks, in part to $111.5 million in long-term debt at June 30, 2009.
• The team did have operating income of over $5.8 million for the fiscal year ended June 30, 2009, however, paying nearly $9 million in interest (among other things) swung them to a much narrower net income of $1.8 million.
• Net cash from operating activities were a negative $7.4 million for the FYE June 30, 2008 but improved to a negative $1.5 million for FYE June 30, 2009. The team’s cash balance at June 30, 2009 was a mere $650k.
• George Shinn, the team’s owner, owes the franchise approximately $5 million from “various advances” but has also loaned the team over $8.3 million.
• The franchise has various investment associated with the NBA that have negative equity including: NBA Joint Venture; WNBA Holdings, LLC; NBDL Holdings, LLC
• The team has principal payments of approximately $115 million coming due through 2014.
• Guaranteed contracts to players through the 2013-2014 season amount to $247.5 million.
• “Revenue assistance” from the NBA (team is eligible if it has both an actual loss and a pro forma loss) for the FYE June 30, 2009 was $3.4 million.
Whew! So as you can see, the franchise isn’t in the best of shape. Our analysis is just a scratch on the surface so if you’ve got some time, crunch some numbers and share your findings with the group below.