CV Sciences Inc (CVSI)

[Det_Robert_Thorne]

CANV files 8-K confirming my interpretation of 10-K

Perhaps because of the investigations by the law firms, CANV just filed an 8-K that states the reasons for their restating 1Q/13 - 3Q/13, and basically its because they believe they overvalued the Phytosphere deal when they first said it was worth $35M, and now say it was only worth $8M [Emphasis Added].

In reviewing the price that the Company’s common stock was trading at during the year, management determined that although the negotiated price of the Transaction was $35 million, that price may not represent the fair market value of the Assets acquired. As a result, management determined that obtaining a valuation of the Assets would be required in order to determine the fair value of the Assets acquired. The valuation resulted in a fair value of approximately $8 million. Accordingly, management concluded that the valuation of $8 million for the Assets to be the most reliable measure of fair value of the Transaction for the Company. In addition, management determined that sales and cost of sales for the quarter ended March 31, 2013 were incorrect.

http://www.sec.gov/Archives/edgar/data/1510964/000101968714001382/canna_8ka-032814.htm

They go on to show some of the numbers they plan to use in the restatements.

They're basically bringing the cost of the deal back to reality.