Yeah... I saw that SEC filing they released on the 9th and it says they are going to take some SERIOUS charges against earnings:
biz.yahoo.com
In the course of preparing its ongoing filings with the Securities and Exchange Commission (the "Commission") under the Securities Exchange Act of 1934, the Registrant became aware of the Commission's recent emphasis on application of EITF 00-19, "Accounting for Derivative Financial Instruments Indexed to, and Potentially Settled in, a Company's Own Stock" and SFAS 133 "Accounting for Derivative Instruments and Hedging Activities" to certain financial instruments. The Registrant was previously unaware of the applicability of these pronouncements to instruments such as its investment agreement with Dutchess Private Equities Fund, II, L.P. Because these are extremely complicated accounting issues with which the Registrant had no previous experience or expertise, upon learning of these accounting pronouncements' potential applicability, the Registrant retained a consultant to advise it with respect to such applicability. The consultant advised that the pronouncements were applicable. The Registrant immediately undertook an analysis of the impact of applying them on its historical financial information. As a result of the analysis, the Registrant has concluded that the financial information filed with its Quarterly Reports on Form 10-QSB for the quarters ended June 30, 2005 and September 30, 2005 should be restated.
As a result of the application of these pronouncements, at September 30, 2005, we will record a derivative liability of $3,446,322 and redeemable instruments of $66,375 and for the nine months ended September 30, 2005, we will record a $596,192 loss on derivative contracts, net.
Like I said... .02/share stocks are that way for a reason...
But what do I know.. I just post "garbage".. ;0)
Btw, don't feel back.. I got sucker into CKEI, thinking it was due for a bounce.. But I just caught a falling knife. The concept they have might have potential, but there's obviously some manipulation going on and the manipulators aren't quite done yet...
Still hoping to get out of that with at least a break even.. But I'm not holding my breath.. Fortunately, I didn't invest much into it.
Hawk |
