Saf T Lok Incorporated (Nasdaq: LOCK) announced today that it would not be necessary to restate its unaudited Financial Statements for the quarter ended March 31, 1998.
As announced on July 21, 1998, in both a press release and a form 8-K filing with the Securities and Exchange Commission, the Company retained an independent valuation expert to consult with the Company's auditors regarding valuation of warrants to purchase 2,000,000 shares of the Company's common stock for $5.00 per share issued in connection with the Company's February 11, 1998, distribution agreement with United Safety Action, Inc. (the "Warrants"). On August 12, 1998, the Company received the appraisal report indicating that application of the generally accepted Black-Scholes Option Pricing Model yielded a value of $1,884,000. The previous valuation method, which the Company's counsel employed as an alternative permitted under APB 123, yielded a value of $473,525 for the Warrants as reported in the March 31, 1998, Form 10Q. The portion of the difference between the two valuation methods to be amortized over the applicable period from the date of the grant (February 11, 1998) through the end of the first quarter (March 31, 1998) is $32,727. Since the re-valuation of the Warrants would not affect the Company's earnings per share and is, therefore, not material, the Company has determined that restatement of the first quarter 1998 Financial Statements will not be necessary. Financial Statements for the second quarter 1998 will report the first quarter understatement of $32,727 as well as the amortized portion of the re-valued amount for that quarter.
Saf T Lok currently produces two safety locking devices that operate with a coded touch mechanism that effectively precludes a weapon from firing by an unauthorized user. The unique patented device becomes an integral part of the firearm and does not need to be removed to operate the gun. The gun can be unlocked in seconds by an authorized user, even in the dark, and can safely be used on a loaded firearm.
The statements in this press release that relate to future plans, events or performance are forward-looking statements that involve risks and uncertainties, including but not limited to risks identified in the Company's SEC filings. Actual results, events and performance may differ materially. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company undertakes no obligation to release publicly the result of any revisions to these forward- looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
SOURCE Saf T Lok Incorporated
CO: Saf T Lok Incorporated |
