PWCC Statement on Recent Card Trimming Concerns

[Aquarian Sports Cards]

Originally Posted by Dpeck100

It is not my area of expertise but it would seem that CLCT might carry some form of errors and omissions insurance. Just doing a quick Google search it can cover professional advice and it would seem that a graded altered card could fall under inaccurate advice.

At the end of the quarter in March CLCT had 15.7 million in cash and is on pace to earn roughly 9.6 million in their current fiscal year. I keep reading posts about the 832k reserve fund and people are forgetting this is just a bad debt reserve and should they have to payout more they have plenty of other resources to stay a float.

I get the feeling that it isn't going to be a slam dunk for card buyers to be made whole and especially since you sign a submission form that states you won't submit trimmed cards. I could see them going hard after this Moser guy and he clearly has some resources one would think after the trail of successful flips he has made.

I know these threads are long but the info is largely all there at this point. In their recent stockholders statement they say that they have no insurance that would cover their guarantee.

[Peter_Spaeth]

Originally Posted by Aquarian Sports Cards

I know these threads are long but the info is largely all there at this point. In their recent stockholders statement they say that they have no insurance that would cover their guarantee.

Yes it's in the risk factors section of the K.

[Dpeck100]

Originally Posted by Peter_Spaeth

Yes it's in the risk factors section of the K.

Reading through it now and will find it and post it.

This is interesting.


We do not provide a warranty with respect to our opinions regarding the authenticity or quality of autographs or memorabilia.

[Dpeck100]

Originally Posted by Aquarian Sports Cards

I know these threads are long but the info is largely all there at this point. In their recent stockholders statement they say that they have no insurance that would cover their guarantee.

Here it is


We could suffer losses on authentication and grading warranties.
In general, we issue an authenticity or grading warranty for coins and trading cards that we authenticate or grade. Those warranties provide that:
■ if a coin or trading card that we authenticated and sealed in one of our tamper-evident plastic holders are later determined by us not to have been genuine, we
would have to purchase the collectible at its current market value had it been genuine; or
■ if a coin or trading card that we graded and sealed in one of our tamper-evident plastic holders later receives a lower grade upon resubmission to us for grading,
we would be obligated either to purchase the collectible at the market value at its original assigned grade or to pay the difference between that value as
compared to the value at the lower grade.
We have no insurance coverage for claims made under these warranties, and therefore we maintain reserves for such warranty claims based on historical experience.
However, there is no assurance that these warranty reserves will prove to be adequate, and as we expand our services in overseas markets, we may incur higher warranty
claims than we have experienced in the past. If our warranty reserves prove to be inadequate, our gross margin and operating results could be harmed. As a result, we monitor
the adequacy of our warranty reserves on an ongoing basis.