EcoloCap Solutions Inc. (fka ECOS)

[deal guy]

Actually that is not entirely accurate. The error goes back to when they started issuing convertible debt. The effect of the derivative liability continues today since the value of the convertible debt moves with the stock price. This is tortured and complicated accounting.

There are a couple of new items in the 10K.
- They are consolidating ECOS Bio Art into the ECOS financials. This will create some visibility into the results of the LRS JV going forward.
- They had to record a derivative liability for the LRS warrants. This liability stays on the ECOS books until LRS exercises the warrants. Since it is reported in the 10K and there is no subsequent event disclosure, you can conclude that LRS has not exercises any of the warrants as of today.