Ophthalmic Imaging Systems announced yesterday that they would restate their financial results as of and for the fiscal year ended December 31, 2009 included in their Annual Report on Form 10-K, and their interim financial results as filed on Form 10-Q for periods ending March 31, June 30, and September 30, 2010 and 2009.
The restatements are a result of reclassifying certain warrants issued by the Company in 2007, 2009, and 2010 and embedded conversion option issued in connection with a convertible note issued by the Company in 2007, as liabilities. These warrants and embedded conversion option had undergone classification as equity.
The adjustments will result in non-cash charges to be reflected below the loss from operations line in Ophthalmic Imaging Systems’ consolidated statements of operations and on their consolidated balance sheet. The adjustments will have no impact on their cash balances or loss from operations.
Following their evaluation in accordance with guidance provided by SEC Staff Accounting Bulletin No. 108 codified as Topic 1.N, Ophthalmic Imaging Systems came to the conclusion that the impact of the adjustments is quantitatively material to their previously filed financial statements. The Company has discussed this issue with their independent registered public accounting firm, Perry-Smith LLP.
The restated financial results as of and for the fiscal year ended December 31, 2009 will be reported in the Annual Report filed on Form 10-K for the fiscal year ended December 31, 2010. The Company will restate their financial results as of and for the periods ending December 31, 2009, March 31, June 30, and September 30, 2010 and 2009 as soon as is practicable.
Headquartered in Sacramento, California, Ophthalmic Imaging Systems is the leading provider of ophthalmic digital imaging and informatics systems. They design, develop, manufacture, and market digital imaging systems, image management and integrated EMR and PM solutions for the eye care market. The Company has over 25 years in the ophthalmic imaging business and they have consistently introduced new, innovative technologies.
Via their wholly owned subsidiary, Abraxas Medical Solutions, Inc., Ophthalmic Imaging Systems provides EMR and PM software to OB/GYN and orthopedic physicians. They market and support their products through a vast network of dealers, distributors, and direct representatives.
For more information visit: www.oisi.com