Ann: Preliminary Final Report, page-14

The profit (loss) result is actually much worse than it looks, given the massive undervaluation of the 75 million options granted in the FY. Mgmt used implied volatility of 49% which is insanely low for this kind of stock- a fairer number would be in the 80-100% range. The only possible justification of such a low volatility would be that management thinks the stock is overvalued (given the options are calls and only make money if the stock rallies).

Using a fairer implied volatility of 80% comes out to around an extra $2.4 million in share based compensation

The auditors flagged this as a key issue, along with queries about their inventory valuation which seems to also be overstated. More red flags for you @mavericktrader4