In addition, due to the discovery of certain inadvertent mistakes in the Company’s financial statements for certain other periods, the
Company, after consultation with its external auditors, expects to make such adjustments to such financial statements as are necessary as a result of such inadvertent mistakes.
THIS IS THE LANGUAGE CAUSING CONCERN - IT DOES NOT SAY THE EXISTING RESERVES ARE IN ERROR BUT THE FINANCIAL STATEMENTS CLEARLY ARE……THE "STREET" DOES NOT LIKE UNCERTAINTY OR INCOMPETENCY IN MANAGEMENT - THESE FACTORS WILL BEAT DOWN THE PRICE. IT IS POSSIBLE THIS COULD WORKOUT AND INVESTORS UNDER $4 COULD TURN A QUICK NICKEL - ANYONE INVESTED IN THIS ALREADY KNOWS IT IS SIMPLY A GAMBLE NOW.
As I noted earlier, it is especially disconcerting because one of the stipulations that SinkHole agreed to with Barclays last week was that there would be no material restatements of past financials. So now the company is alerting the public to the fact that we can anticipate a restatement with the next earnings report. The only question is "Will it be 'material' enough to be viewed as a default event by Barclays?" Stay tuned.