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Aastrom Biosciences (ASTM) Restatement Reclassifies Warrants

ASTM is restating its financial statements included in an amended annual report on Form 10-K/A for the fiscal period ended 6/30/10, as well as amended Form 10-Q/As for the quarters ended 9/30/09, 12/31/09, 3/31/10 and 9/30/10 as a result of comments received from the SEC following a review of the ASTM’s annual report on Form 10-K for the fiscal year ended 6/30/10.
  • 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.