El Capitan Precious Metals Inc (ECPN)

[gitreal]

Today's 8-K, apparently losses were more than disclosed for 3 quarters in the last year......something (a pilot plant)that was classified as an asset was actually an operating expense.

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

On January 24, 2018, the Audit Committee of the Board of Directors (the “Audit Committee”) of El Capitan Precious Metals, Inc. (the “Company”) concluded, after discussions with Company management and MaloneBailey, LLP, the Company’s independent registered public accounting firm, that the interim financial statements contained in the Company’s Quarterly Reports on Form 10-Q for the quarters ended December 31, 2016, March 31, 2017 and June 30, 2017 (the “Affected Periods”) should no longer be relied upon for the reasons summarized below.

For each of the Affected Periods, the Company previously classified certain costs related to the development and operation of a pilot plant in Phoenix, Arizona as current assets (advances to vendor) on the Company’s balance sheet. The Company will be reclassifying such costs as operating expenses incurred during each of the Affected Periods. The amounts being reclassified for the quarters ended December 31, 2016, March 31, 2017 and June 30, 2017 are approximately $336,000, $435,000 and $503,000, respectively. Such reclassification will increase the Company’s net loss from operations and net loss for each Affected Period by the amount of costs being reclassified, resulting in the restatement of our financial statements for each of the Affected Periods. As soon as practicable, we intend to amend our Quarterly Reports on Form 10-Q for the Affected Periods to reflect the restatement of our financial statements for such Affected Periods.

The Audit Committee, and Company management have discussed the matters disclosed on this Current Report on Form 8-K with the Company’s independent registered public accounting firm, MaloneBailey, LLP.