- The restatements will correct for a misapplication of the accounting for warrants to purchase shares of the company’s common stock that were issued in connection with prior equity offerings. These warrants will now be reclassified as liabilities, with changes in the fair value of the warrants recorded as non-cash income or expense in each reporting period;
- ASTM anticipates filing the amended annual and quarterly reports on or before 2/18/11 with restated financial statements reflecting the treatments of the warrants.
The Bottom Line: This matter is strictly accounting for warrants and their impact upon liabilities. Nothing more should be read into it; since all the restatements involve non-cash, non-operating expenses that will have NO impact on the current or previously stated cash position, operating expenses or cash flows.