Citrati... this is my understanding of the accounting issue.
The bulk of each acquired property was exchanged for stock (an equity interest in FTMR) and a lesser cash amount.
From my perspective (I'm not an accountant), however one chooses to assign value to the acquired properties, both aspects of the purchase should be accounted for.
Initially, the acquired properties were valued at the price of the stock when the transactions were completed and a cash component.
Secondarily, their values were later restated to reflect only the cash component part of their purchase. I don't believe the company liked this lesser valuation but went along with it, as their intention was to demonstrate their value by developing them and proving their value.
Thirdly, when the new accounting firm came on board, they believed the company's financials should reflect both the shares issued and the cash component... and this is where the company is today.
By this stock and cash valuation, I believe the company currently has a book value of a dollar and twenty-some cents per share.
Watch for opportunities with those you trust.
