The company said its needs additional time to complete the report. NQ Mobile previously disclosed this information in a press release on April 30 and in its Form 12b-25 filed with the Securities and Exchange Commission.
Short seller Carson Block has accused NQ Mobile of overstating revenue, and investigation results are reportedly expected soon. The law firm Shearman & Sterling LLP and auditor Deloitte & Touche Financial Advisory Services Ltd. are leading the investigation, which should clarify whether Block's assertion that NQ Mobile misrepresented its financials is true.
The stock was down 27.47% to $7.42 at 10:14 a.m.
Separately, TheStreet Ratings team rates NQ MOBILE INC -ADR as a "sell" with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
"We rate NQ MOBILE INC -ADR (NQ) a SELL. This is driven by some concerns, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity and feeble growth in its earnings per share."
Highlights from the analysis by TheStreet Ratings Team goes as follows: