Verenium also announced today that during the preparation process for the Company's 2012 Annual Report on Form 10-K an error was identified in the Company's previously-issued financial statements related to the Company's accounting for its facility lease at 3550 John Hopkins Court in San Diego, CA.
Under Generally Accepted Accounting Principles ("GAAP") the Company is required to record an asset representing the total cost of the building and improvements, including the costs paid by the lessor (the legal owner of the building), with a corresponding lease financing obligation. As a result, the Company will restate certain historical financial statements as of, and for the year ended December 31, 2011 and the quarterly periods ended June 30, 2011, September 30, 2011, March 31, 2012, June 30, 2012 and September 30, 2012. The restatement is expected to have a material impact on the consolidated balance sheets for the relevant periods. The impact of the restatement on the Company's consolidated net income (loss) for the relevant periods is expected to be insignificant. Further, the restatement will have no impact on the Company's reported cash position for the relevant periods.
"As we indicated in our June 2011 disclosures when we entered into this lease, we believe our facility is a highly attractive means for us to provide the space we need to grow our business on financial terms favorable to the Company," said Jeff Black , Chief Financial Officer at Verenium. "Today, we are revising the accounting treatment for our San Diego facility lease, as prescribed by GAAP; however, we feel it is critical for our stakeholders to fully understand that going forward, the approximately $22 million asset that will appear on our balance sheet as a result of
|SOURCE Verenium Corporation|
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