The Company has also sold its Perf-Form segment that manufactured and marketed oil filters. Further, it discontinued manufacturing of its PlazCo segment and has outsourced the manufacturing of that segment’s wheel covers and other products for the aftermarket and OEM golf industry. In doing so, the Company incurred charges of approximately $250,000 in inventory, goodwill and other intangible asset impairment for the full year of fiscal 2011 for these segments, in addition to the charges noted above for the ATV Accessories segment.
The Company also announced that it has discovered an error in the way it accounted for certain equity compensation grants, which will require it to amend its previously-filed Annual Report on Form 10-K for the fiscal year ended September 30, 2010, and its Quarterly Reports on Form 10-Q for the first, second and third quarters of fiscal 2011. The error, which related to a non-cash compensation expense, caused the Company to understate the number of shares that were to have been issued and outstanding, having the effect of inaccurately reporting the basic and fully-diluted earnings per share for those periods.
Amending these previously-filed SEC reports will cause a delay in filing the Company’s Annual Report on Form 10-K for the year ended September 30, 2011. The Company expects to file its 2011 Form 10-K by February 14, 2012.
Preliminary, Unaudited Results for the Quarter and Year ended September 30, 2011.
For the three months ended September 30,
For the year ended September 30,
STATEMENT OF OPERATIONS
|Cost of goods sold||1,777,745||3,118,106||8,838,851||9,353,775|
|Sales, general & admin||1,321,827||1,715,855||4,997,010||4,759,661|
|Loss on sale of assets||107,390||(11,230||)||127,452||94,556|
|Net loss pre tax||$||(2,508,782||)||$||(2,119,209||)||$||(5,609,473||)||$||(3,133,903||)|
|Total current assets||$||3,335,774||$||6,528,444|
|Net fixed and intangible assets||9,238,648||10,190,581|
|Total current liabilities||$||7,261,525||$||5,565,895|
|Long term liabilities||2,426,545||4,065,279|