Universal Property Development Corporation (fka UPDV)

[why_meil]

Oaks, here's why they need to restate:

" ... brief description of the facts ... is as follows:

Upon further evaluation of our accounting methodology and the relevant accounting principals, we determined that we should
have calculated and recorded asset retirement obligations and related accretion, depletion and impairment expense in the
financial statements. We should have properly recorded the breakup fee to Sundial in the Consolidated Statement of Cash Flows.
We also needed to expand several disclosures in equity, risk factors, etc. and remove certain disclosures that were incorrect.


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Our disclosure controls and procedures were not effective at the reasonable assurance level due to a material weakness surrounding the calculation of the asset retirement obligations. We had inadequately designed processes to properly calculate our asset retirement obligations.

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Related to the above, the Company did not have any asset retirement costs or obligations because part of its agreement with its operator was that the operator would cover all retirement costs related to the Company’s leases.

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We have incorrectly presented two separate amounts for diluted loss per share on the face of our Statement of Operations.

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The disclosure of the costs incurred for oil and gas property acquisition, exploration and development activities was inadequate.

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There was no disclosure of reconciliation of the changes to the Standardized Measure and the changes in proved reserve quantities.

http://finance.aol.com/company/universal-property-development-and/updve/nab/8-K/08821692/html/sec-filings