Education and training services company
said Wednesday that it completed its review of historic stock option grants from 1999.
The Santa Ana, Calif.-based company said that the review, conducted by a special committee of independent directors, found no evidence of fraud or wilful misconduct. The company, however, determined that it had unrecorded non-cash equity-based compensation charges for certain option grants. In particular, the company found that during 2001 and 2002, there were several occasions where the grant date differed from the appropriate date that should have been used.
The unrecorded compensation expense and related tax liabilities from fiscal 2001 through fiscal 2005 was about $5.7 million.
The company has now accounted the unrecorded compensation-related expenses, and also the incidental expenses of conducting the review mentioned above. The annual report for fiscal 2006, and quarterly report for the first quarter of fiscal 2007, have been filed Wednesday with the SEC, the company added.
With the filings completed, the company expects Nasdaq to cease delisting proceedings that it had initiated, as reported earlier.
Shares rose 22 cents to $12.50.
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