American Resources of Delaware Inc. announces one-time, non-cash charges to fourth quarter, 1995, earnings.SCOTTSDALE, Ariz.--(BUSINESS WIRE)--Jan. 12, 1996--The board of directors of American Resources of Delaware Inc. (ARI ARI Acute respiratory infection, see there ) (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :GASS GASS Greenland Air Surveillance System GASS Gas Analyzing Sensor System GASS Guidance Accuracy Study for SPRINT GASS Google AdSense Stats Syndrome GASS Generic Application Simulation System (Boeing Rotocraft) ) Friday announced that the company will incur certain non-cash charges which will affect fourth quarter earnings. The charges were taken in consideration of the company's adoption of the new Financial Accounting Standards Board Financial Accounting Standards Board (FASB) Board composed of independent members who create and interpret Generally Accepted Accounting Principles (GAAP). pronouncement No.121 (FASB FASB See: Financial Accounting Standards Board FASB See Financial Accounting Standards Board (FASB). No.121). As a result, the company has reviewed the carrying values of existing investment values and amounts attributable to existing consulting agreements. Current recognition of these non-cash charges against 1995 income will result in an annual reduction of amortization expense of approximately $220,000 for each of the next six years. The recent review resulted in the board's decision to terminate consulting agreements with two companies and recognize a one-time, non-cash, pre-tax charge of $1,116,913. The consultants had been compensated by the issue of common stock of the company, which compensation was being expensed by the company over the term of the contracts at the rate of approximately $18,400 per month. The company also reviewed the carrying value and investment value with respect to its ownership interest in North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. Life Insurance Co. of Pennsylvania (NALICO), a privately held insurance company. This investment was made in connection with a non-cash asset purchase transaction consummated in 1994. Based upon information recently received by the company relative to the financial deterioration of NALICO, including the fact that NALICO is operating under rehabilitation proceedings, management employed the services of an independent appraiser to determine the current fair market value of the NALICO investment. As a result of the appraisal, the company will recognize a one-time, pre-tax, non-cash charge of $869,000, which represents its recorded cost. Management believes the company has a solid financial foundation and that the effect of these non-cash charges will have a positive long-term impact on the financial condition of the company. The company intends to focus its efforts on increasing its asset value and earnings from operations and plans to accomplish this primarily through the development of its reserves in the Gulf of Mexico Noun 1. Gulf of Mexico - an arm of the Atlantic to the south of the United States and to the east of Mexico Golfo de Mexico Atlantic, Atlantic Ocean - the 2nd largest ocean; separates North and South America on the west from Europe and Africa on the east , both offshore and onshore, and the continued operations in Appalachia. CONTACT: American Resources of Delaware Inc., Scottsdale 602/945-9195 |
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