LOV income for quarter $.11 excluding SOX costs ($.12 on reduced share count of 26 million).
Net income for the third quarter of 2007 was $2.0 million, or $0.07 per share, compared to $2.8 million, or $0.09 per share, for the third quarter of 2006. The decrease in net income was due to $1.1 million in costs associated with the Company's Scheme of Arrangement and its first year implementation of SOX compliance during the third quarter of 2007, versus no such costs in the same period last year. Excluding Scheme and SOX costs, net income for the quarter increased to $3.1 million or $0.11 per share. Net income for the nine months was $2.1 million, or $0.07 per share, compared to $3.9 million, or $0.12 per share, for the same period last year. Contributing to the decrease in net income for the nine month period was an impairment expense of approximately $1.9 million, related to the impairment of the book carrying value of goodwill under FAS 142 related to AmericanSingles; $1.1 million in share-based compensation expense related to the acceleration of vesting and extension of the exercise period of options for our former CEO and Chairman of the Board, in connection with his resignation as CEO of the Company; and Scheme and SOX related costs of $2.4 million. Excluding Scheme and SOX costs, net income for the nine months increased to $4.5 million, or $0.15 per share.
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