Delcath Systems Inc (DCTH)

[RainyDayWriter]

In an attempt to understand GAAP:

Cautionary Note as to Misleading Information

The SEC has long taken the position that the misleading presentation of financial information presented on a basis other than GAAP, whether in SEC filings or public disclosures, may subject an issuer to liability under anti-fraud provisions of the federal securities laws. Even prior to the adoption of Regulation G and Item 10(e) in 2003, the SEC cautioned registrants that:

the anti-fraud provisions of the federal securities laws apply to a company issuing “pro forma” (i.e., non-GAAP) financial information that has been made misleading through selective editing or “cherry picking”;when a registrant purports to announce earnings excluding “unusual or nonrecurring transactions;’ it should describe the particular transactions and the kind of transactions that are omitted and apply the methodology described when presenting purportedly comparable information about other periods; andinvestors are likely to be deceived if a registrant uses a “pro forma” (i.e., non-GAAP) presentation to recast a loss as if it were a profit, or to obscure a material result of GAAP financial statements, without clear and comprehensible explanations of the nature and size of the omissions.