Earth Science Tech Inc. (ETST)

[HopScotch2]

This isn't pretty for ETST. I wonder if this recent restatement relates to how they accounted for shares issued for investor relations services.




Item 4.02 Non-Reliance on Previously Issued Financial Statements or a Related Audit Report or Completed Interim Review.

The Board of Directors of Earth Science Tech, Inc. (the "Company"), in consultation with its outside advisors and management, concluded on April 8, 2016 that the Company's financial statements for the annual period ended March 31, 2015, and the subsequent quarterly periods, should not be relied upon.

The Company has restated the March 31, 2015 balance sheet, income statement, cash flow statement, and statement of stockholder's equity as originally presented in its financial statement filed with its 2015 10-K on August 5, 2015 to accrue an issuance of stock that should have been recorded in that period and to correct a share-based payment that was not valued in accordance with Generally Accepted Accounting Principles during the period. The Company is concurrently filing an amendment to the 10-K with the restated financial statements. The Company will also amend the two previous 10-Qs to reflect the restated financial statements on or by April 18, 2016.

On April 8, 2016, the Company also received notification from its independent accountant, EisnerAmper LLP, that action should be taken to prevent future reliance on the previously filed financial statements contained in the forms 10-Q for the quarterly periods ended June 30, 2015 and September 30, 2015. The latter forms contained an issuance of common stock that should have been recorded in the previous annual period and share-based payments that were not valued in accordance with Generally Accepted Accounting Principles. The Company intends to file the amended forms on or by April 18, 2016.