China Growth Stocks

[Headley Lamar]

CKGT - The 10Q/A states -

For the nine months ended September 30, 2009, income before income taxes decreased $2,168,537 to $1,929,367 from $4,097,904 for the corresponding period of the prior year. The decrease was primarily due to the $4,236,850 loss from revaluation of financial instruments liabilities in 2009, offset by an increase in gross profit. As a result, net income also decreased $2,509,072 to $902,890 from $3,411,962. Excluding the non-cash loss from revaluation of financial instruments liabilities, net income would have been $5,139,740 in 2009.

I assume this is the GAAP earnings, which for 3 months of 2009 is now only .09. Is that correct? I keep hearing everyone say that this is a non-cash adjustment but what does that mean for GAAP EPS?