NASDAQ:MOLG : MOL Global's share price crashes 54% (3)
- Consolidated revenue increased by 5.6% to MYR47.7 million
(US$14.5 million) from MYR45.2 million in the corresponding period of
2013.
- Profit attributable to shareholders of MOL Global Inc. decreased 61.5% to MYR2.4 million (US$0.7 million) in the third quarter of 2014 from MYR6.3 million in the corresponding period of 2013.
- During the course of the Company's review of its financial
results for the third quarter of 2014, the Company's auditor discovered
that its Vietnamese subsidiary, Nganluong Joint Stock Company
("Nganluong"), which was acquired by the Company in March 2013, reported
revenue from its payment business on a gross basis, and accounted for
the corresponding fees payable to merchants being included in direct
cost and other ancillary expenses. However, the Company's accounting
policy is to account for such transactions on a net basis because the
Company acts as an agent with respect to these revenue arrangements,
such that the corresponding fees payable to merchants should have been
netted out of revenue and not included in direct cost and other
ancillary expenses.
- Two putative class action complaints have been filed against the Company and certain of its officers and directors alleging certain untrue statements and omissions in its registration statement and prospectus for the Company's initial public offering and seeking unspecified damages and other relief.
Sounds not good.
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