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Gold/Mining/Energy : Nuvo Research Inc -- Ignore unavailable to you. Want to Upgrade?

To: Montana Wildhack who wrote (12194)	3/7/2003 6:49:27 PM
From: Montana Wildhack	Respond to of 14101

Dimethaid rights offering application continues TORONTO, March 7 /CNW/ - Dimethaid Research Inc. (TSX: DMX) has received a decision from the Commissioners of the Ontario Securities Commission following a hearing on certain issues related to the Company's recently announced rights offering. Staff at the Ontario Securities Commission had taken a different view of the interpretation of Canadian generally accepted accounting principles than that of the Company and its auditors. As a result, the Company intends to revise its financial statements for the period ended May 31, 2002 to: - move its non-cash obligations in respect of the unpaid balance of the OXO Chemie AG acquisition purchase price from the liability portion of the balance sheet to the equity portion; - apply a net present value discount factor (currently undetermined) to the equity, since the payment obligations are to be satisfied over the next five years; - make a corresponding adjustment to the value of the OXO patents on the Company's balance sheet (this adjustment will also reduce amortization charges in future periods); and - clarify its note disclosure regarding foreign currency translation. Subsequent quarterly statements will be similarly restated. The revisions have no cash impact in the periods affected, however, the Company believes that there will be an impact on reported earnings per share as a result of the above adjustments. The Company is also working with Ontario Securities Commission staff to determine whether: - a portion of its classification of the OXO patents should be treated as acquired research and development; and - separate disclosure of offsetting future tax assets and future tax liabilities is required. The Company believes its treatment is correct and will be providing additional documentation to Ontario Securities Commission staff next week. Shareholders will be notified once all outstanding issues have been resolved and the Company has received approval to proceed with the rights offering.

To: Montana Wildhack who wrote (12194)	3/7/2003 10:41:53 PM
From: PlayTheKing	Read Replies (3) \| Respond to of 14101

The accounting rules in both the US and Canada are quite clear regarding how acquisitions of entities MUST be treated. There are no ifs, ands or buts, about these rules...you either do them or you will be deemed to be in non-compliance of GAAP. The first thing that should be done is to get rid of the Mickey Mouse accounting firm DMX has "re-hired". The 3rd tier CA firm has clearly shown why they are 3rd tier. Prospectuses in Canada are relatively simple in contrast to the more detailed forms and questionnaires that must be completed for US securities filings. The "ma and pa shop" mentality of DMX seems to be resurfacing once again. PTK