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Technology Stocks : Forecross Corporation : Y/2000 -- Ignore unavailable to you. Want to Upgrade?

To: David Stern1 who wrote (889)	4/18/1998 11:04:00 PM
From: Rick Voteau	Read Replies (1) \| Respond to of 1654

David and Richard, I fund the piece on the "ongoing concern in the Forecross financials, have copied them adn will post them below. I believe that you have taken this clause out of context and hope readers read the entire statement. Many, many, many statements of software companies with limited cash have to have statements to this effect. I am a Forecross fan and own many shares and I absolutely agree with the statement. If the contracts don't come then they will likely not be an ongoing concern. I SIMPLY BELIEVE THE CONTRACTS WILL COME. THE SOFTWARE IS BULT----THE CONTRACTS WILL COME. Isn't that a movie? FINANCIAL DISCLOSURE ____________________ On July 2, 1997, the Company received the resignation of its independent auditor, Coopers & Lybrand, L.L.P. ("Coopers & Lybrand"). Prior to receipt of the resignation, the decision to change auditors was not discussed, recommended or approved by any committee of the Board of Directors or by the Board of Directors. By resolution dated September 10, 1997, the Board of Directors of the Company appointed BDO Seidman, L.L.P. ("BDO Seidman") as the new independent auditor of the Company, effective September 10, 1997. There have been no reservations in the auditor's reports of Coopers & Lybrand for the last two fiscal years reported on by Coopers & Lybrand ended September 30, 1996 and 1995. The auditor's reports of Coopers & Lybrand as of and for the years ended September 30, 1996 and 1995 were modified to reflect their conclusion that an uncertainty existed at those dates about the Company's ability to continue as a going concern. There were no disagreements of any kind with Coopers & Lybrand during the two fiscal years reported on by Coopers & Lybrand ended September 30, 1996 and 1995. Subsequent to the release of the Company's unaudited financial statements for the quarter and six months ended March 31, 1997, Coopers & Lybrand advised the Company that Coopers & Lybrand disagreed with the Company's accounting for two specific transactions entered into in March 1997. Both transactions involved the licensing of software and the granting of certain exclusive marketing rights to two of the Company's distributors. It was the view of Coopers & Lybrand that the Company did not have sufficient information to support the allocation and recognition of revenue between the software licenses and the exclusive marketing rights because the Company had never sold these two elements separately. The Company believed that its reporting was appropriate and consistent with advice, but Coopers & Lybrand continued to disagree. Subsequent to the resignation of Coopers & Lybrand, BDO Seidman was retained to advise the Company on a recommended method of accounting for the two transactions in question as well as a subsequent similar transaction. BDO Seidman has recommended a method of accounting whereby the total dollar amount of the software license and distributor agreements will be amortized over periods commencing with the dates of their respective signing and ending December 31, 1999. The Company accepted this recommendation and accordingly restated its interim financial statements for the period ended March 31, 1997. The Company has authorized Coopers & Lybrand to fully respond to any inquiries of BDO Seidman concerning the disagreement. The Company has never been advised by Coopers & Lybrand that: (1) it does not have the internal controls necessary for the development of reliable financial statements; or (2) any information came to the attention of Coopers & Lybrand that led it to conclude that it could no longer rely on management's representations, or made it unwilling to be associated with financial statements prepared by management; or (3) there was any need to increase the scope of its audits. The Company has been advised by Coopers & Lybrand that except for the disagreement regarding the two specific transactions described above, nothing has come to the attention of Coopers & Lybrand that in its opinion materially impacts the fairness of previously audited financial statements for the fiscal years ended September 30, 1996 and 1995.