Item 4.02, Non-Use of Previously Published Financial Statements or Related Audit Report or Completed Interim Review.
These errors related to non-cash stock-based compensation expense were identified by management during the implementation of a new stock option accounting software system. To confirm these findings, the Company’s audit committee retained the services of a third-party accounting consulting firm, to work with management and the Company’s independent and registered audit firm,
This review found no indication that these errors were the result of bypassing controls or improper conduct within the Company. The methodology for calculating expenditure based on Company actions and actual expenditure reported each year had been fully disclosed and reviewed by PKF, as part of their annual audits.
Following this review process, the
As such, the Company provides for the following adjustments to its Form 10-K for fiscal year 2021:
1) for the year ended 2021, an additional non-cash charge of
2) for the fiscal year ended in 2020, an additional non-cash charge of
The Company also anticipates that in order to adjust non-cash stock-based compensation expense reported incorrectly in years prior to fiscal 2020, it will make a one-time adjustment to its consolidated balance sheet for the fiscal year ended.
Although it is expected that these corrective actions will be adequate, the Company intends to seek advice from the
Except for the statements of historical fact contained herein, the information presented in this current report on Form 8-K constitutes “forward-looking statements” as that term is used in applicable securities laws. Often, but not always, forward-looking statements can be identified by the use of words such as “plans”, “expects”, “is expected”, “budget”, “potential”, “expected”, “estimates”. “,” Foresees “,” intends “,” anticipates “,” believes “or” plans “, or the negative aspects thereof or variations of these words and phrases or statements that certain actions, events or results “will”, “should”, “may”, “could”, “would”, “could” or “will be taken”, “occur” or “be achieved” or the negative of these terms or terminology comparable. Forward-looking statements include statements regarding the Company’s intention to restate its prior financial statements and estimated adjustments to the restated financial statements. There can be no assurance that the management of the Company, the audit committee or the firm of Independent registered accountants will not come to any conclusions regarding the tax act of the restatement that are different from management’s preliminary estimates or will not identify additional issues or other considerations relating to the restatement and the audit and review process or that such issues will not require adjustments additional to the Company’s previous financial results. All of these statements are subject to risks and uncertainties which may cause actual results to differ materially from those shown herein. These risks and uncertainties include, but are not limited to, the risk that additional information may arise from the oversight of the audit committee, the risk that the process of preparing and auditing the financial statements or other subsequent events necessitate the Company to make adjustments, the time and effort required to complete the restatement of the financial reports, the ramifications of the Company’s potential inability to file the required reports in a timely manner, the risk of identifying weaknesses in controls internal Company on the Company’s financial reports or the Company’s ability to remedy these weaknesses, the risk of litigation or government investigations or proceedings relating to these matters, and the risk of potential negative effects on the business, the results of operations, financial condition and share price of the Company as a result of the restatement and correction process. Other risks are described in more detail in the documents filed by the Company with the
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