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[QUOTE]Originally posted by <disappointed shareholder>: [QB] Item 4.02 Non-Reliance on Previously Issued Financial Statements or a Related Audit Report or Completed Interim Review (a) On February 22, 2005 the Board of Directors concluded that an account receivable was incorrectly included in the financial statements of its subsidiary, and therefore in the Company's consolidated financial statements, for the quarterly period ended June 30, 2004 and the fiscal year ended September 30, 2004, the financial statements of the Company for those periods should no longer be relied upon . The Company intends to correct the error by filing restated financial statements as promptly as possible. The Company follows a revenue recognition policy that prohibits booking accounts receivable for unpaid parking tickets under the Company's contracts. even though the Company contractually owns the accounts receivable. The Company follows this revenue recognition policy on its 2 other outstanding contracts, but failed to realize that the account receivable for one contract (San Herman, Puerto Rico) was in fact being recorded incorrectly. The Company became aware of the error in connection with preparation of its 10-QSB for the period ended December 31, 2004. The Company has discussed the error with its independent accountants and is working with them to prepare and file the restated financial statements. As a result of the restatements for the quarter ended June 30, 2004, accounts receivable will decrease by approximately $85,000, accounts payable will increase approximately $223,000, revenue will decrease by approximately $300,000, resulting in decrease of net income of approximately $180,000 for period ended June 30, 2004 after resulting changes in minority interest and income taxes. As a result of the restatement for the year ended September 30, 2004, accounts receivable and revenues will decrease by approximately $130,000 and net income will decrease by approximately $80,000 after the resulting changes in minority interest and income taxes. any commends? [/QB][/QUOTE]
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