YuuZoo needs to show it can make money alongside governance gains

YUUZOO Corp seems to be taking steps in the right direction when it comes to raising its corporate governance, but operational execution remains a persistent challenge at the social commerce business.

Without demonstrating any meaningful improvement in its core business, either in terms of actual usage or in terms of revenues, YuuZoo may have to incur significant impairments again this year when it reassesses the value of its franchisees.

YuuZoo made a number of moves over the past several months in an attempt to address criticism about its accounting practices and corporate governance.

The most significant was in June, when the company finally completed its annual audit for the year ended December 2016. That audit marked YuuZoo's adoption of more conservative accounting prin…