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Investigation Into AMMO's Accounting Piles On Financial Weakness

The article from Seeking Alpha discusses an investigation into AMMO, Inc.'s accounting practices, highlighting significant financial weaknesses. The U.S. Department of Justice has initiated a criminal investigation into AMMO, focusing on its GunBroker.com subsidiary, which has led to concerns about the company's financial reporting. The investigation was triggered by a whistleblower's allegations of improper revenue recognition and other accounting irregularities. AMMO has acknowledged the investigation but stated that it does not expect it to have a material impact on its financial statements. However, the scrutiny has raised red flags among investors, particularly due to AMMO's history of aggressive revenue recognition practices, high inventory levels, and a significant drop in stock price. The article suggests that these issues could potentially lead to restatements of financials, further impacting the company's already strained financial position.

Read the Full Seeking Alpha Article at:
[ https://seekingalpha.com/article/4743682-investigation-into-ammos-accounting-piles-on-financial-weakness ]