12:48AM SIGA Technologies announces restatement of certain historical financial results to reflect reclassification of warrants as a liability (SIGA) 3.52 : Co announces that, based on the recommendation of management, the Company concluded that the previously issued consolidated financial statements for the years ended December 31, 2011 and 2010 in the most recently filed annual report on Form 10-K for the year ended December 31, 2012 are no longer appropriate to rely upon because they failed to account for certain outstanding warrants to purchase common stock of the Company as liabilities rather than equity and to account for non-cash charges resulting from required periodic "mark-to-market" adjustments of these warrants. The Company has determined that its Form 10-K for the year ended December 31, 2012 should be amended to reflect the aforementioned liabilities and non-cash charges.
The co has concluded that the only change required to its previously filed balance sheets and statements of operations will be the recording of the appropriate liabilities and non-cash charges in the appropriate reporting periods and the effects therefrom. No other change to its previously filed balance sheets or statements of operations is anticipated. The cumulative impact of the restatement is expected to result in an approximate decrease in the total stockholders' equity balance and a corresponding increase in total liabilities of $700,000 at December 31, 2012.
There is no impact on net cash flows for the 2011 and 2010 annual periods because the changes in the fair value of common stock warrants are recorded as non-cash charges that adjust net loss or earnings to reconcile to net cash used in operating activities on the Company's consolidated statements of cash flows.
