This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Flotek Industries Amends Outstanding Warrants To Simplify Accounting Presentations

Stocks in this article: FTK

HOUSTON, June 15, 2012 /PRNewswire/ -- Flotek Industries, Inc. ("Flotek" or the "Company") (NYSE: FTK) announced today an agreement with all current warrant holders (the "Holders") to remove certain provisions that cause the Company to treat the warrants as derivative instruments ("Derivatives") under Generally Accepted Accounting Principles ("GAAP").

The conditions to be deleted include provisions related to the requirement of the Company to make cash payments to Holders upon certain fundamental transactions that result in a change of control. In addition, provisions related to the adjustment of the exercise price of the warrants in the case of certain actions by the Company have also been removed.

The removal of these provisions will allow Flotek to discontinue the treatment of these warrants as Derivatives for the purposes of GAAP accounting presentations. As a result, the Company will make a final fair value determination on the official date of the Amendment with any change in the fair value from the last valuation date recorded in income during the second quarter.  The revalued warrant liability will be reclassified to additional-paid in capital and will no longer be adjusted to fair value. Going forward, there will be no additional fair value adjustments as the warrant will cease to be treated as Derivatives under GAAP accounting standards.

"The agreement by our warrant holders to amend their warrants to simplify our income statement presentation is another step in our quest to create clear and transparent financial statements to our stakeholders," said John Chisholm, Chairman, President and Chief Executive Officer of Flotek. "We believe the confusion associated with our warrant accounting has caused some potential investors to eschew Flotek due to the complexity of our earnings calculations. We appreciate the support of our warrant holders in making Flotek's accounting presentations more straightforward for all investors. This will further highlight the real earnings power of Flotek."

In consideration for the Amendment, Flotek has paid $0.20 cash per outstanding warrant. Total consideration is approximately $335,000.

The complete Amendment will be filed on a Current Report on Form 8-K with the U.S. Securities and Exchange Commission.

1 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs