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  "docSlug": "69cc18cfe079",
  "documentTitle": "NQ Mobile (NQ)",
  "authorId": "51_Muddy_Waters",
  "authorName": "Carson C. Block",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2013-10-24 00:00:00",
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  "notes": "The slide uses a forensic accounting approach to expose the discrepancy between reported revenue and actual business operations.",
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      "text": "We conclude that at least 72% of NQ’s reported $32.2 million in 2012 China security software is fraudulent.",
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      "text": "China revenue: 72%",
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      "text": "NQ's largest customer is really NQ. NQ secretly controls a shell company called Yidatong (\"YDT\"). NQ claims that YDT is an independent company, and accounted for $20.2 million in 2012 revenue.",
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      "text": "NQ reported $32.2 million in security software revenue in 2012 from China. We believe that NQ's real security revenue was $2.5 million to $7.7 million (7.8% to 23.9% of reported revenue).",
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      "kind": "paragraph",
      "text": "We conclude that at least 72% of NQ's reported $32.2 million in 2012 China security software is fraudulent. SAIC financials for Yidatong, its largest customer, NQ's enterprise and gaming companies, NationSky and FL Mobile, show indicia of fraud.",
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      "kind": "source-note",
      "text": "1 NQ March 2013 investor presentation. 2 Wireless Value-Added Application Service Channel Cooperation Agreement... 3 Accounting Standards for Enterprises No. 14 - Revenues.",
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      "kind": "title",
      "text": "The Vast Majority of NQ's China Revenue is Fraudulent",
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