As discussed in note 5 to the February 28, 2006 consolidated financial statements, the Company has restated its consolidated financial statements for the period ended August 31, 2005 and will restate the quarterly reports for the quarter ended May 31, 2006. These restatements are the result of the Company's accounting treatment for the business combination of Easy.com Inc and Royal Spring Water Inc.
As of the end of the period covered by this annual report, an evaluation was carried out under the supervision and with the participation of the Company's management, including our Chief Executive Officer and our Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934). Based upon that evaluation, the Chief Executive Officer and the Chief Financial Officer concluded that the design and operation of these disclosure controls and procedures were not effective because of the material weakness discussed below. Notwithstanding the material weakness discussed below, the Company's management has concluded that the consolidated financial statements included in this Annual Report on Form 10-QSB/A fairly present in all material respects the Company's financial condition, results of operations and cash flows for the periods presented in conformity with accounting principles generally accepted in the United States of America.
A material weakness is a control deficiency, or combination of control deficiencies, that results in more than a remote likelihood that a material misstatement of the annual or interim financial statements will not be prevented or detected. As a result of the restatement described above, the following material weakness was identified in the Company's assessment of the effectiveness of disclosure controls and procedures as of February 28, 2006:
i) The Company did not maintain effective controls over the accounting for the business combination of Easy.com Inc and Royal Spring Water Inc.
During the quarter of the period covered by this report, there were no significant changes in internal controls or in other factors that could significantly affect the internal controls, including any corrective actions taken with regard to significant deficiencies and material weaknesses.
This is obviously what has held up the move to the Bulletin Board. They will also be re-stating the quarter ending in May 06'
Just received the re-stated quarter ending in May....
Looks Great !!
1 Million dollar credit line was obtained through an Oklahoma bank.
Billion
