Ballistic Recovery Systems to Restate 2004 Year End Financial Statements
May 24 2005 - 7:23PM
PR Newswire (US)
Ballistic Recovery Systems to Restate 2004 Year End Financial
Statements SOUTH ST. PAUL, Minn., May 24 /PRNewswire-FirstCall/ --
Ballistic Recovery Systems, Inc. (OTC:BRSI) (BULLETIN BOARD: BRSI)
( http://brsparachutes.com/ ) today reported that in response to
comment letters from the Securities and Exchange Commission (SEC)
regarding the value of certain warrants issued to Cirrus Design in
1999, it would restate its 2004 Year End financial statements. The
restatement revolves around BRS's valuation of the warrants that
were to be acquired by Cirrus, a total of 650,000 shares of the
company's common stock at an exercise of $1.25 per share provided
Cirrus met a certain purchase commitment to BRS. The Company has
recalculated the warrant value to show an additional sales
reduction of $369,831. The impact of the recalculation is prompting
the Company to restate its Year End financial statements for 2004.
The Year End financial restatement reduces sales, income from
operations and income before income taxes by $369,831 and net
income by $223,131. The restatement increased total assets,
deferred tax asset-current and shareholders' equity by $146,700 as
of September 30, 2004. In February of 2005, Cirrus Design exercised
their options on an additional 650,000 shares of BRS stock, brining
its total beneficial ownership to 15.3%. The stock warrant purchase
impacted final sales and income figures that were reported earlier
by BRS for Financial Year 2004. Robert L. Nelson, Chairman of the
Board, said, "Cirrus is our second largest BRS shareholder, it's
that commitment to aviation safety that has us positioned for
continued growth in sales and product development, this adjustment
further clarifies our position of strength in the marketplace." The
stock warrant was the last of 4 sets of options that were granted
to Cirrus Design under a volume purchasing contract signed in
September 17, 1999. BRS also announced they will be filing the
restatement and an amended 10-KSB for the year ended September 30,
2004. In the company's 25 year history, BRS has sold nearly 20,000
of its whole- plane parachute systems; BRS units have been
documented to have saved over 177 lives. In April, BRS was honored
as one of the best of the best in Aerospace & Technology when
they were presented a Laureate Award by Aviation Week magazine as
the recipient as the top Business and General Aviation Company in
2004 The forward-looking matters discussed here should be
considered subject to risks and uncertainties, including market
fluctuations, pricing, procurement, manufacturing efficiencies, and
other risks that could cause the actual results to differ
materially from those projected. For more information, review the
company's filings with the Securities and Exchange Commission,
particularly the Company's annual report on Form 10-KSB. For more
information on BRS contact: Larry E. Williams; BRS, Inc: Fleming
Field, 300 Airport Road; South St. Paul, MN 55075; USA ( ) TEL
651.457.7491 ; FAX 651.457.8651 or Robb Leer media liaison at
952-842-8133 ( ). DATASOURCE: Ballistic Recovery Systems, Inc.
CONTACT: Robb Leer for Ballistic Recovery Systems, +1-612-701-0608;
or Larry E. Williams of Ballistic Recovery Systems (BRS),
+1-651-457-7491 or Web site: http://brsparachutes.com/
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