Item 4.02 Non-Reliance on Previously Issued Financial Statements
On June 16, 2014, Truli Media Group, Inc. (the “Company”) determined that , because of a misapplication of the accounting guidance related to convertible debt and warrants issued in September 2013, and a full-ratchet anti-dilution feature that was included in these instruments , the Company’s previously issued unaudited financial statements for the six months and nine months ended September 30, 2013 and December 31, 2013, respectively , included in the Company’s Quarterly Report on Form 10-Q for the nine months ended December 31, 2013 and the six months ended September 30, 2013 (the “Previously Issued Financial Statements”) filed with the United States Securities and Exchange Commission (the “SEC”) contain certain errors that materially impact the Previously Issued Financial Statements. Accordingly, these Previously Issued Financial Statements and related financial information should no longer be relied upon.
Amended Current Report Filing (8-k/a)
Date :
06/20/2014 @ 4:30PM
On September 10, 2013, the Company issued $501,337 of the Company’s 12% Senior Convertible Debentures (“12% Debentures”). In connection with the transaction, the Company also issued common stock purchase warrants to acquire 25,066,850 shares. The warrants had an exercise price of $0.05 per share. The Company also issued common stock purchase warrants to acquire 2,506,685 shares as payment for services. Both the 12% Debentures and the warrants contain full-ratchet anti-dilution features. At the time of filing the Previously Issued Financial Statements, the Company did not account for the reset provisions as a derivative in accordance with Accounting Standards Codification (ASC) 815, Derivatives and Hedging. As a result, the Company will recognize additional expense of approximately $1,159,000 for the three and six month periods ended September 30, 2013 and approximately $363,000 for the three month period ended December 31, 2013 and $1,522,000 for the nine month period ended December 31, 2013. Our derivative liabilities will increase by approximately $1,752,000 at September 30, 2013 and by approximately $2,115,000 at December 31, 2013.
