I've been asking the company to clean up the financials for quite a while. I applaud this step they are taking, and I bought a ton of shares today. I'm convinced the last 2 quarters will show higher earnings after the revisions, with earlier quarters showing lower earnings. Growth rates will be higher. And the "note receivable", which appears to be a zero-interest loan to management, will in fact revert either to a subtraction from paid in capital (from distributions in 2009) or salary paid to CEO and staff. Folks who sold today have no idea what they own. Good riddance, and thanks for the cheap shares.
IDLM - Idle Media Inc - Page 8
Volume picking up. Great news that previous earnings were understated. I averaged down to .26 when it was below 20s. I was going to dump my shares when I got to the green, but this stock is actually making a profit unlike many other pennies that trade at a higher market cap. I may just stick around and give them more time.
Form 8-K/A for IDLE MEDIA, INC.
Non-Reliance on Previous Financials, Audits or Interim Review
Item 4.02 Non-Reliance on Previously Issued Financial Statements or a Related Audit Report or Completed Interim Review.
On February 24, 2011, the Board of Directors of the Registrant determined that the previously filed financial statements for the fiscal years ended September 30, 2010 and 2009 included in the Form 8-K filed on May 24, 2010 and in the Form 10-K filed in January 13, 2011, and for the fiscal quarters ended December 31, 2010 and June 30, 2010 included in its quarterly reports on Form 10-Q as filed with the Securities and Exchange Commission should not be relied upon.
The Registrant is undertaking a review of accounting matters relating to the fiscal years ended September 30, 2010 and 2009, and for the fiscal quarters ended December 31, 2010 and June 30, 2010 to identify errors that may require accounting adjustments. The Registrant cannot state at this time a complete description of errors that may require accounting adjustments until further review. The Registrant cannot state the time when the full review will be complete or when fiscal years ended September 30, 2010 and 2009, and fiscal quarters December 31, 2010 and June 30, 2010 results will be announced, and intends to provide appropriate updates on this matter as soon as practicable.
To date, the Registrant has identified the following errors in the course of this review, but continues to examine other accounting issues that may or may not require further accounting adjustments.
� For the year ended September 30, 2009, the Registrant's revenue may be understated by approximately $213,000.
� For the year ended September 30, 2009, the Registrant's expenses may be understated by approximately $16,000.
� For the year ended September 30 2010, the Registrant's revenue may be understated by approximately $258,000.
� For the year ended September 30, 2010, the Registrant's expenses may be understated by approximately $16,000.
The effects on certain reported periods are quantitatively significant, and the impact of the individual errors will be disclosed in more detail in the Registrant's restated financial statements.
The Registrant's Board of Directors discussed the matters described in this Item 4.02 with its independent registered public accounting firms.
The Registrant's management has been assessing the effectiveness of the Registrant's internal controls over financial reporting and disclosure controls. Based on this assessment, the Registrant expects to report a material weakness in the Registrant's internal controls over financial reporting, and, therefore, conclude that internal controls over financial reporting as of December 31, 2010 are not effective. Although the assessment is not yet complete, management expects to recommend to the board of directors certain remedial actions that include a thorough review of the accounting department, to ensure that the areas of responsibilities are properly matched to the staff competencies and that the lines of communication and processes are as effective as possible and a thorough review of the processes and procedures used in the Registrant's accounting.
The Registrant intends to file an amended Form 10-K with restated financial statements for the fiscal years ended September 30, 2010 and 2009 and amended Form 10-Q with restated financial statements for the fiscal quarters December 31, 2010 and June 30, 2010 before the end of April 2011 or as soon as practicable to correct the errors once identified.
10K finally out
Back to a reporting company. Soon will uplist.
10Q due out soon. Keep an eye on this one. Not for flipper though. Volume currently is not enough for that.