DJ Calypte: Board Review Of SEC Probe Finds No Wrongdoing
01/12/2004
Dow Jones News Services
(Copyright © 2004 Dow Jones & Company, Inc.)
WASHINGTON (Dow Jones)--Calypte Biomedical Corp. (CYPT) said the
company's internal investigation of matters related to a Securities and
Exchange Commission inquiry indicates no evidence of management wrongdoing.
In an amended Form 8-K filed last Friday with the SEC, Calypte said
that counsel retained by the board's audit committee made this conclusion
after an investigation, which included interviews and the review of documents
provided to the SEC in response to the inquiry.
The San Francisco District Office of the SEC told Calypte of the
informal inquiry Oct. 28, 2003, and requested documents and information for
press releases that the company had issued. The SEC said the inquiry
shouldn't be construed as an indication that any violation of law had
occurred.
Calypte, which develops tests for HIV-1 antibody in urine samples,
said in the Friday filing that the audit committee proposed the company
implement certain practices and procedures, including continuing with some of
the company's practices.
Calypte said the recommendations and proposals approved by its board
include those related to the issuing of company press release and investor
relations, and regulatory record-keeping procedures.
The board has also directed management to implement the American
Stock Exchange corporate governance standards approved by the SEC on Dec. 1,
2003.
Calypte said the SEC informal inquiry and audit committee
investigation hasn't had a significant impact on the company's business
operations.
However, Calypte said the investigation has resulted in more than
$300,000 of expenses for legal and accounting fees during the fourth quarter
of 2003. Calypte said it expects to incur additional fees in 2004.
In the filing Friday, Calypte's former auditor, KPMG LLP (KPM.XX),
confirmed that it wasn't provided with the results of the internal
investigation at the time of its dismissal.
As reported, Calypte Chief Financial Officer Richard Brounstein told
Dow Jones Newswires Jan. 5 that the company dismissed KPMG because it didn't
want the auditing of its third quarter report to be delayed any further.
KPMG said it won't complete its audit of the company's
third-quarter or 2003 results until it reviewed the audit committee
investigation of the SEC matter and its recommendations to the board.
Calypte hired Odenberg Ullakko Muranishi & Co. as its auditor Dec.
24, one day after dismissing KPMG.
Shares of Calypte closed Friday at 54 cents each.
-By Brian Callaghan; Dow Jones Newswires; 202-862-1352;
brian.callaghan@dowjones.com
(END) Dow Jones Newswires
01-12-04 0934ET
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