Going into this stock, I knew it would not be a straight line to huge gains. This is a growing industry but it's very new and can be very volatile. However, Nielson has been in this industry for a while, took what he learned, and came up with a plan that makes sense in this field. I still think his plan is good but he didn't count on Chinese accounting issues. I'm sure he will take this lesson and improve upon his plan. In due time, the 10-K will be amended, and in the meantime, we should be seeing EWSI with new avenues for revenue particularly in the US (3 more ePlants planned for the US) and we have a planned ePlant in Europe. According to the 10-K, EWSI's relationship with Loyalty Equipment will expedite this process. I'm sure we are all nervous. You would be crazy not to be a little nervous, but then you have to ask: do you believe in this company and do you think this company will continue executing its business plan? I'm not going anywhere but I am expecting them to resolve the China accounting issue in the second quarter.
Quote:
While the lease agreements are still in force and generating revenues, the company is working with XuFu to ensure that sufficient operational and financial controls are in place to warrant consolidation and has de-consolidated for the purposes based upon the suspension of the management and related agreements creating the VIE. It is expected that this will be resolved in the second quarter of 2014.