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  "documentTitle": "NQ Mobile (NQ)",
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  "authorName": "Carson C. Block",
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  "presentationDate": "2013-11-06 00:00:00",
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  "notes": "This is a research note page focusing on forensic accounting and operational verification.",
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      "text": "YDT, which purportedly accounts for 72.1% of NQ's carrier billing, stands a reasonable chance of not showing up even once in 22 carrier subscriptions across 11 provinces (including in NQ's biggest provincial markets), and all three carriers.",
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      "text": "carrier billing share: 72.1%",
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      "text": "We have now activated NQ subscriptions through the carrier-billing channel 22 times, and YDT has never been the SP. We have made eight attempts across all three carriers with SIMs for NQ's purported largest provincial markets.",
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      "text": "YDT, which purportedly accounts for 72.1% of NQ's carrier billing, stands a reasonable chance of not showing up even once in 22 carrier subscriptions across 11 provinces.",
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      "text": "One way of confirming that YDT's ARs are shown on a gross, and not net basis, is looking at YDT's cash account relative to its ARs. As of December 31, 2012, YDT's cash is only $150,000. On the same date, its ARs are $3.6 million.",
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      "text": "is reported in its SAIC financials on a gross basis. Under the suggested alternative (nonsensical) version of accounting, YDT books an AR only for the amount of net revenue it will recognize.",
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      "text": "PRC GAAP standards mandate that when a party receives the entire amount of payment on behalf of another party pursuant to all contracts involved, the payment agent books the gross amount received as revenue.",
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      "kind": "source-note",
      "text": "As we explain infra, the 60-day carrier payment term claim contradicts NQ's own contract with China Mobile, which provides for payment within 15 to 45 days.",
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