SEC Filing Summary: Xenomics, Inc. (8-K)
Business Context and Reporting Period
This Form 8-K was filed by Xenomics, Inc. on February 13, 2006, reporting events occurring on December 15, 2005. The filing addresses a material restatement of previously issued financial statements following comments from the SEC Staff regarding the company's Form SB-2. The company's principal executive offices are located in New York, New York.
Key Financial Metrics and Restatements
The filing details specific adjustments to stock-based compensation and other items for prior periods. The filing text does not provide current revenue, profit, cash flow, or debt figures for the reporting period.
- Fiscal Year Ended January 31, 2005: Restated to record an expense of $3,982,642 for stock compensation.
- Quarter Ended April 30, 2005: Restated to record a benefit of $172,938 for stock-based compensation expense.
- Six Months Ended July 31, 2005: Restated to record an expense of $2,797,920 for stock-based compensation and a net expense of $35,199 for other adjustments.
Material Changes Versus Prior Period
The primary material change is the non-reliance on previously issued audited financial statements for the fiscal year ended January 31, 2005, and unaudited quarterly statements for periods ended April 30, 2005, and July 31, 2005. These statements were restated to correct accounting treatments related to stock compensation.
Management Commentary, Risks, and Unusual Items
Management, in consultation with the Audit Committee and the independent registered public accounting firm (Lazar Levine & Felix LLP), concluded that the prior financial statements should no longer be relied upon. Consequently, the company amended its Form 10-KSB/A (filed January 10, 2006) and Form 10-QSB/A (filed January 11, 2006) to reflect these restatements. The unusual item driving this filing is the significant adjustment to stock-based compensation expenses identified during the SEC review process.
Investor Verification Checklist
- Verify the amended Form 10-KSB/A for the year ended January 31, 2005, filed on January 10, 2006.
- Review the amended Form 10-QSB for the quarter ended April 30, 2005, filed on January 11, 2006.
- Review the amended Form 10-QSB/A for the quarter ended July 31, 2005, filed on January 11, 2006.
- Confirm the impact of the $3.98 million stock compensation expense on the company's historical net income and equity.
- Assess the company's current liquidity position given the historical restatements and lack of current financial data in this specific filing.