InfoSonics(IFO Quote) plummeted Monday after the wireless-handset distributor filed to restate its first-quarter income.
The San Diego-based company said the adjustment resulted after warrants issued in conjunction with its financing completed in January were classified as a derivative liability, when they should have been reclassified as equity. The company's restated first-quarter income is $1.2 million, or 15 cents a share, compared with the previously reported figure of $1.7 million, or 22 cents a share.
"Looking ahead, we are pleased that our financial statements will not be affected on a quarterly basis by having to mark-to-market the derivative liability which has now been moved to equity," CFO Jeff Klausner said in a statement. Shares nosedived $6.58, or 27.2%, to $17.64 in recent trading. ...
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