This was the release regarding the Write down.
Had nothing to do with the Kryon!
Unfortunately, it maybe misunderstood by folks reading any bad press.
after review, concluded that the value of existing manufacturing technology to extract gold from various fluids previously developed by the Company, and technology for use of certain alloys in such process, did not appear to be economically or physically viable, and accordingly that recorded goodwill as a result of such combination should be substantially adjusted and reduced.
November 17, 2011 05:23 PM Eastern Daylight Time
Bourque Industries Substantially Writes Down Goodwill for Fiscal Year Ended May 31, 2011
TUCSON, Ariz.--(BUSINESS WIRE)--Bourque Industries, Inc. (OTC:BORK) has announced that it has substantially written down Goodwill carried on its Balance Sheet from an acquisition in March 2011, and posted restated company financial statements for the fiscal year ended May 31, 2011.
During the fiscal year ending May 31, 2011 the Company approved and executed a plan of acquisition and reorganization that provided for the exchange of 150,000,000 unregistered common shares of the Company for all of the issued and outstanding common shares of JBIT, Inc. The acquisition was made to combine the manufacturing and distribution capabilities of the Company with the license agreements of patented alloys held by JBIT, Inc. The amount of goodwill acquired during the combination was recorded based on the share price of the Company at the time of the acquisition and reorganization at $28,695,238, without consideration of the illiquid nature of the public market for the Company’s common stock.
The Board of Directors at the end of the Company’s fiscal year, after review, concluded that the value of existing manufacturing technology to extract gold from various fluids previously developed by the Company, and technology for use of certain alloys in such process, did not appear to be economically or physically viable, and accordingly that recorded goodwill as a result of such combination should be substantially adjusted and reduced. Accordingly, the Company determined that there has been a significant impairment of goodwill at the end of the fiscal year ended May 31, 2011, and the Company recognized an impairment charge against goodwill of $28,195,238, and reduced goodwill carried on the Company’s books to $500,000, effective as of the end of said fiscal year. The goodwill impairment charge is reflected in the Company’s restated financial statements, which have now been posted on the Company’s website, www.bourqueindustries.com, and which will be filed with the PinkSheets Market Service along with the Company’s quarterly financial statements.
About Bourque and Kryron
Bourque Industries, Inc. is a publicly-traded (OTC: BORK) development stage company based in Tucson, Ariz. Bourque is the distributor of Kryron-based technologies.
Kryron, a revolutionary metal-alloying process developed by Founder and CEO John M. Bourque, creates metal super alloys that have unique and useful material characteristics that have potential for game-changing applications across a broad range of industries. Kryron technology is available for licensing and joint development opportunities.
Utilizing Kryron, the Company has developed a state-of-the-art protective armor material that management believes can provide superior protection to first-response teams in the military and law enforcement at a pinnacle level of performance and innovation.
This communication to shareholders and the public contains certain forward-looking statements. Sometimes these statements will contain words such as "believes," "expects," "intends," "should," "will," "plans," and other similar words. The events described in these forward-looking statements are not certain to occur. These statements are only predictions and involve known and unknown risks, uncertainties and many factors beyond our control. Although forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect our current judgment, actual results could differ materially from those anticipated in such statements.
Contacts
Bourque Industries, Inc.
Andrew Myers, 520-981-6207
andrew.myers@bourqueindustries.com
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