Citron Notifies NASDAQ About Home Solutions of America

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Over the past 5 months, Citron Research has delivered groundbreaking research on what we believe is an ongoing fraud in the marketplace committed by Home Solutions of America and its management team.  We have no doubt that this will end badly for shareholders — it has just become a matter of when. 

The company has not only misled investors with its nebulous financial statements, they have now gone as far as filing false documents with the Securities and Exchange Commission.  As CFO Jeff Mattich is preparing his Q3 numbers, he should first look at what he did on the Q2 10-Q.  It was two months ago that the company stated and reflected in their financials an agreement that required approval of their Line of Credit lender. 

Now two months later, the lender still has not signed off on this revised deal with Home Solutions and investors are still unsure about the actual status of the line of credit.  While management flies around on private jets, investors do not even know if the company has enough money to pay its bills…and based on the amount of liens and lawsuits against Home Solutions, we believe the company is facing a major cash crunch that is normally a precursor to bankruptcy.

Attached is a letter written to the NASDAQ explaining Citron’s opinion on the current status of Home Solutions of America disclosure to the public.  This letter was sent via email and certified mail to appropriate persons at the NASDAQ. 

nasdaqwarningletter.pdf

Cautious Investing To All