Preliminary First Quarter 2010 Results
Based on unaudited preliminary information, the Company expects first quarter results to be as follows:
-- Revenue growth of approximately 17% to approximately $28.9 million, -- Income from operations rose 11% to approximately $10.1 million, and -- Comprehensive income of between $12.1 million and $13.1 million, including a preliminary, estimated non-cash gain of $4.5 million to $5.5 million on change in the fair value of the Warrants, as compared to $7.4 million for the three month period ended March 31, 2009.
Change in Accounting Standard
On January 1, 2009, Accounting Standards Codification (ASC) 815-40,
"Derivatives and Hedging - Contracts in Entity's Own Equity," formerly
Emerging Issues Task Force Issue No. 07-05, "Determining Whether an Instrument
(or Embedded Feature) Is Indexed to an Entity's Own Stock," became effective.
ASC 815-40 provided new guidance for determining whether equity linked
financial instruments are indexed to a Company's own stock and, as a result,
whether those contracts should be marked-to-market each period. The Company
recently completed an assessment and believes its Warrants issued under the
January 31, 2008 private placement memorandum are within the scope of ASC
815-40 due to a Warrant provision (containing a reset feature)
|SOURCE China Sky One Medical, Inc.|
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