HARBIN, China, April 7 /PRNewswire-Asia-FirstCall/ -- China Sky One Medical, Inc. ("China Sky One Medical" or "the Company") (Nasdaq: CSKI), a leading fully integrated pharmaceutical company producing over-the-counter drugs in the People's Republic of China ("PRC"), today announced that an extension notification filed with the Securities and Exchange Commission for its Annual Report on Form 10-K on March 31, 2009, is related to a technical non-cash accounting issue regarding the treatment of 3 million shares of the company's stock owned by China Sky One's Chairman that were placed in escrow as part of its private placement on January 31, 2008 as part of a "make good" provision to achieve specified earnings per share targets, because if the company achieved the targets for both 2007 and 2008, the escrowed shares will be returned to the company's chairman. The company is working closely with its current and prior auditors, and seeking additional guidance from SEC, on the issue as to whether these escrow shares will lead the company to record a non-cash compensation expense during 2008. This is the only outstanding issue that has delayed the filing of its annual report on form 10-K.
On a pro forma basis that excludes the impact of any potential non-cash, non-operational expense related to the "make-good" shares, the Company reaffirmed that it met its prior 2008 revenue estimate of $88-$90 million, and its full year 2008 operational net income estimate of approximately $27-$28 million.
"We want to reassure our shareholders that the delay in the release of our
annual results is due to the pending resolution of these complex, non-cash
accounting issues and has no bearing on the fundamentals of our business,"
said Mr. Yan-Qing Liu, Chairman and CEO of China Sky One Medical. "We are
currently working with our auditors
|SOURCE China Sky One Medical, Inc.|
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