Dynacq Healthcare Announces Resignation of Independent Auditor.Business Editors HOUSTON--(BUSINESS WIRE)--Dec. 18, 2003 Dynacq Healthcare, Inc. (Nasdaq:DYII) (the "Company") announced today that Ernst & Young, LLP LLP - Lower Layer Protocol ("E&Y") resigned late on December 17, 2003 as the Company's independent auditor Independent Auditor An external auditor with a certified public accounting designation that qualifies him or her to provide an auditor's report. Notes: These auditors aren't affiliated with the company being audited. effective immediately. No reason for the resignation was specified in E&Y's letter of resignation. However, E&Y verbally advised the Company that E&Y resigned due to the Company's lack of internal controls necessary to develop reliable financial statements. The Company believes there are no pending disagreements between the Company and E&Y as to any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure. The Company has commenced the process of interviewing candidates to serve as successor auditor. As a result of E&Y's resignation, the Company continues to be unable to file its annual report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. . The Company plans to file Form 10-K as soon as practicable after its new auditor completes the audit of the Company's financial statements for the year ended August 31, 2003 and the SEC completes its review of the Company's periodic reports. The Company is evaluating the impact of its inability to timely file its Form 10-K on its covenants under the Company's revolving credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. facility, its obligations under Nasdaq listing standards, and its reporting obligations under the Securities Exchange Act of 1934. The Company already has communicated, or shortly will be in communication, with its banks, the Nasdaq Stock Market Nasdaq stock market The first electronic stock market listing over 5000 companies. The Nasdaq stock market comprises two separate markets, namely the Nasdaq National Market, which trades large, active securities and the Nasdaq Smallcap Market that trades emerging growth companies. , and the Securities and Exchange Commission. Statements in this release concerning the beliefs, expectations, intentions, future events, future performance, and business prospects may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and and are based on several assumptions. If any of these assumptions are not satisfied or prove to be incorrect, actual results could differ materially from those indicated in the forward-looking statements. The risks and uncertainties that may cause these forward-looking statements to prove to be incorrect include, without limitation, that the engagement of the new audit firm or the new audit firm's review and audit of the Company's financials may be protracted pro·tract tr.v. pro·tract·ed, pro·tract·ing, pro·tracts 1. To draw out or lengthen in time; prolong: disputants who needlessly protracted the negotiations. 2. , or that financing options and transactions otherwise available to the Company will be dependant upon Adj. 1. dependant upon - determined by conditions or circumstances that follow; "arms sales contingent on the approval of congress" contingent on, contingent upon, dependant on, dependent on, dependent upon, depending on, contingent retention of a new auditor and completion of any required audits and reviews. |
|
Printer friendly
Cite/link
Email
Feedback
Reader Opinion