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  "docSlug": "69cc18cfe079",
  "documentTitle": "NQ Mobile (NQ)",
  "authorId": "51_Muddy_Waters",
  "authorName": "Carson C. Block",
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  "documentKindLabel": "Research note",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2013-10-24 00:00:00",
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  "pageNumber": 53,
  "pageCount": 81,
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  "notes": "The slide argues that NQ Mobile's cash claims are inflated and that acquisitions are used to launder money back into the company as fake revenue.",
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      "text": "We believe that the onshore cash is far less than what NQ claims, and that it uses a portion of the excess to commit its fraud.",
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      "text": "NQ's acquisition of the remaining 73.4% of Feiliu (aka FL Mobile) for a total of $62.7 million is likely corrupt.",
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      "text": "Net changes in cash + term deposit: 65,987",
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      "text": "Transferring cash directly to the VIE would represent worst practices... We believe that the onshore cash is far less than what NQ claims, and that it uses a portion of the excess to commit its fraud.",
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      "text": "There are reasons to believe (apart from the fact that NQ is involved) that NQ's recent acquisitions are likely corrupt transactions. NQ has completed or announced acquisitions totaling $25 million of cash and 15 million ADSes.",
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      "text": "Note: Others mainly consist of currency translation differences ~$1.5mm.",
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      "text": "68 NQ usually / always makes its acquisitions with common shares. The ADSes are based on the 5:1 conversion ratio.",
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      "text": "OCF excluding other payables (7,407); ICF (1,131); Changes in other payables 72,556; Others 1,969; Net changes in cash + term deposit 65,987",
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      "text": "VIE cash movement, excluding NQ Fujian",
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      "text": "NQ's Likely Corrupt Acquisitions",
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