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  "documentTitle": "NQ Mobile (NQ)",
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  "authorName": "Carson C. Block",
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  "presentationDate": "2013-10-29 00:00:00",
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  "notes": "This is a research note from Muddy Waters, LLC, focusing on forensic accounting/short-selling research.",
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      "kind": "callout",
      "text": "Lie # 1: Xu Rong was a consultant who worked at NQ for about six months before she joined Yidatong in 2007.",
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      "text": "This is an enormous lie because it goes to the heart of our conclusion that NQ's largest customer is really NQ, dressed up in a shell company called Yidatong (“YDT”) that is nominally 75% owned by Xu Rong.",
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      "text": "On the conference call, NQ was forced to admit it had lied about her departure date after we had showed she was still with the company in 2008. Note that Matt Mathison is now referring to her as an \"employee\", rather than a \"consultant\".",
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      "text": "Muddy Waters noted numerous lies and deceptions in NQ's responses to our October 24, 2013 report. This report lists the ten most egregious falsehoods we noted from the October 25th conference call...",
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      "text": "This is an enormous lie because it goes to the heart of our conclusion that NQ's largest customer is really NQ, dressed up in a shell company called Yidatong...",
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      "text": "How did Xu Rong come to own Yidatong? In 2007 she bought 75% of Yidatong. Did Xu Rong work at NQ? Yes, in 2007, when NQ was a very small company...",
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      "text": "Matt Mathison on conference call: \"Yes, Xu Rong, I can get you the exact details, but she was an employee of NQ. In fact, on a previous short report that came out, I provided a very detailed look at her employment.\"",
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      "text": "The principal shareholder of Yidatong was our consultant in 2006 and 2007 and received certain share options and consulting fees in connection with her services.",
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      "text": "“How did Xu Rong come to own Yidatong? In 2007 she bought 75% of Yidatong. Did Xu Rong work at NQ? Yes, in 2007, when NQ was a very small company, they did not have a good person running marketing. They asked Xu Rong to join as an advisor directing the marketing of the business. She was with NQ for less than six months before leaving and buying her interest in Yidatong.” — NQ Mobile (July 31, 2013). “The principal shareholder of Yidatong was our consultant in 2006 and 2007 and received certain share options and consulting fees in connection with her services. In addition, we provided Yidatong with an interest-free advance in order to fund Yidatong’s short-term liquidity needs and to further cultivate our long-term commercial relationship with Yidatong.” — NQ IPO Prospectus. “Yes, Xu Rong, I can get you the exact details, but she was an employee of NQ. In fact, on a previous short report that came out, I provided a very detailed look at her employment. I can give you the exact start date, end date. I can” — Matt Mathison (Conference Call).",
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      "text": "NQ IPO Prospectus, May 4, 2011, p. 20",
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      "text": "NQ's Top Ten Lies Since Friday",
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