Medbox Inc (OTCMKTS:MDBX) a prominent licensing, security and infrastructure specialist firm, operating in the cannabis industry confirmed that it has completed with filing procedures of its full restated results. It filed a restated and amended Form 10 having restated financial numbers for FY2012 and FY2013 along with restated and amended forms 10Q for the 1Q2014, 2Q2014 and 3Q2014. The company will report FY2014 results later this month.
Wait is over
Medbox Inc (OTCMKTS:MDBX) was required to restate a number of financial numbers due to several errors in revenue reporting. The accounting problems further created issues as the private law firms initiated class action lawsuits against the company. The probe was launched by SEC into the matter. Medbox crashed more than 9% after the restated results were released last week. Now when the restated filings are out, it is evident there were blunders in revenue reporting.
The restated numbers
The restated numbers indicate what Medbox was doing while preparing financial reports. The numbers do not reflect small errors that can be ignored by investors. Instead it reflects bigger problems as the positive revenue have converted into dismal negative numbers. As per the original 10-Q for 1Q2014, the net revenue was $331,000 which turned to negative $8,900 in restated 10-Q for 1Q2014. The original annual FY2012 net revenue was shown as $2.59 million whereas now it came at $1.17 million in restated report. The original annual FY2013 revenue was $5.22 million whereas the restated figure is $2.06 million.
The restated numbers by Medbox can’t even be termed as surprise. It would be better to call them as shocking numbers due to the existing massive percentile differences between originally reported numbers and restated numbers. The cumulative net loss reported in FY2013 and FY2013 amounts to $5.54 million compared to $900,000. The difference is huge and cannot be ignored in any case.