Eternal Image Inc (fka ETNLQ)

[Superbee383]

Posted by: seabiscuit
In reply to: None Date:8/13/2007 9:35:50 PM
Post #of 99045

An educational post : Please watch the market reaction tomorrow for a stock that has to re-state 2004 financials , and EVERY subsequent quarterly 10-Q and yearly 10-K because of the
incorrect 2004 financials .

This is exactly what could / would happen to ETIM if their 2004 financials are incorrect .....and their subsequent and flawed 2005 , 2006 , 2007 , etc quarterly and yearly financials .

There is no forgiveness nor extenuating circumstances allowed by the pirranha infested stock markets for inaccurate financials .

The nasty news release for Merge Healthcare :

Merge Healthcare to Correct Accounting Error and Received Delisting Notice from Nasdaq
Monday August 13, 7:57 pm ET


MILWAUKEE, Aug. 13 /PRNewswire-FirstCall/ -- Merge Technologies Incorporated, doing business as Merge Healthcare (Nasdaq: MRGE - News; TSX: MRG - News), a leading provider of medical imaging software and services, announced today that it will be required to correct an error in how it has recognized revenue from certain software and maintenance contracts dating back to 2004 and earlier and that on August 13, 2007, the Company was notified that the Company's common stock is subject to delisting from the NASDAQ Global Market .

(Logo: http://www.newscom.com/cgi-bin/prnh/20030430/MRGELOGO)

As previously announced in a press release dated August 10, 2007, the Company's management and Audit Committee of the Board of Directors, in consultation with its independent registered public accounting firm, has reviewed the Company's method of recognizing revenue from certain contracts that contain both a license of software and related maintenance and support. The Company has now determined that the previous accounting for the revenue is in error and will require restatement of previously issued financial statements. While the Company's management and Audit Committee cannot at this time quantify the impact of the restatement, the Company will be required to restate its audited financial statements for the years ended December 31, 2004, 2005, and 2006, as well as other financial information included in the Company's Annual Report on Form 10-K for the year ended December 31, 2006 and the unaudited financial statements included in its Quarterly Report on Form 10-Q for the quarter ended March 31, 2007 to reflect the proper accounting treatment. The Company intends to work expeditiously with its independent registered public accounting firm and other professional advisors to make the necessary corrections to its audited financials and file amendments to these periodic reports and the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2007 as soon as possible.

Ken Rardin, the Company's Chief Executive Officer, noted, "While we are obviously disappointed about the restatement of our previously issued financial statements, it is important to understand that this issue relates to a very complex technical interpretation of the accounting rules and our software and maintenance contracts with our customers. The customer contracts affected are the same contracts that have been used for several years, and the restatement is not the result of improprieties by any of our personnel. We are committed to resolving this matter quickly, and while doing so, will not lose our focus on our business and our customers."

The Company received written notice of a NASDAQ Staff Determination that the Company has not satisfied a rule for continued listing on NASDAQ (NASDAQ Marketplace Rule 4310(c)(14)) because the Company did not timely file its Quarterly Report on Form 10-Q for the quarter ended June 30, 2007, and the Company's common stock is, therefore, subject to delisting from the NASDAQ Global Market. As provided for in the NASDAQ Marketplace Rules, the Company intends to request a hearing before a NASDAQ Listing Qualifications Panel to review the Staff Determination. No action will be taken to delist the Company's common stock until the Panel has completed its review, though there can be no assurance that the Panel will grant the Company's request for continued listing.

In addition, the Company hereby suspends its Form S-1 related to issuance of the Company's common stock in exchange for exchangeable shares of Merge/Cedera ExchangeCo Limited. Accordingly, no shares of the Company's common stock may be