Gexa Corp. Announces Results of Review.Energy Editors/Business Editors HOUSTON--(BUSINESS WIRE)--April 28, 2004 Gexa Energy Gexa Corporation (doing business as Gexa Energy) is located in Houston, Texas and is a retail electricity provider (a “REP”) active in the deregulated Texas electricity market. Corp. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :GEXC), a Texas Retail Electricity Provider, announced today that the Audit Committee of the Board of Directors and their independent counsel have concluded their independent review of the Company's internal controls, and recommended an action plan regarding improvements to internal controls. This previously announced review was undertaken in response to various issues raised by the Company's auditors in preparing the Annual Report on Form 10-KSB. Specifically, the Audit Committee's action plan, which has been approved by the Board of Directors, requires the Company to immediately undertake and complete a number of actions (some of which have already been taken), including: -- institute new document control procedures including an updated disaster recovery plan -- finalize the search for a permanent CFO See Chief Financial Officer. -- hire personnel with experience in SEC reporting and accounting, human resources The fancy word for "people." The human resources department within an organization, years ago known as the "personnel department," manages the administrative aspects of the employees. and investor relations Investor relations The process by which the corporation communicates with its investors. -- create new policies and procedures Policies and Procedures are a set of documents that describe an organization's policies for operation and the procedures necessary to fulfill the policies. They are often initiated because of some external requirement, such as environmental compliance or other governmental for the issuance of press releases and the preparation of SEC reports -- establish an internal Disclosure Review Committee to review and coordinate SEC reports, and prepare a policy regarding the notification of senior management and the Board of material developments -- add to and improve accounting policies and procedures -- conduct a review of the Company's internal controls pursuant to section 404 of the Sarbanes Oxley Act -- establish a training program for all relevant personnel regarding SEC reporting, Sarbanes-Oxley Act See SOX. compliance and related issues In reaching these conclusions, the Audit Committee indicated that while there were material weaknesses in the Company's internal controls related to financial reporting, there was no intentional misconduct that occurred in connection with the matters outlined in the material weakness letter sent by the Company's auditors on March 22, 2004. The Company and its auditors are continuing to work on completing the 2003 audit, but at this time cannot estimate when the audit will be completed. The Company also reported that Nasdaq had placed a character "E" by the Company's trading symbol Trading symbol See: Ticker symbol to denote the Company's filing delinquency regarding its Annual Report on Form 10-KSB. If the 10-KSB is not filed by May 20, 2004, the Company's common stock will no longer be eligible for trading in the Nasdaq's OTC Bulletin Board OTC Bulletin Board An electronic quotation listing of the bid and asked prices of OTC stocks that do not meet the requirements to be listed on the NASDAQ stock-listing system. . The Company has previously filed an application for listing on the Nasdaq SmallCap Market, and has been informed by Nasdaq that their review of the application will not be completed until the 10-KSB is filed. Neil Leibman, chairman and chief executive officer, stated, " I am pleased that we have thus far successfully worked through this process and have adopted the recommendations of the Audit Committee. In addition, we have begun to implement the necessary internal controls which will allow us to continue to grow the company with a fundamentally strong organizational base." About Gexa Energy: Gexa Energy is a Texas-based retail electric provider, which entered the market as deregulation Deregulation The reduction or elimination of government power in a particular industry, usually enacted to create more competition within the industry. Notes: Traditional areas that have been deregulated are the telephone and airline industries. began on Jan. 1, 2002. The Company offers residential and all size commercial customers in the Texas restructured retail energy market competitive prices, pricing choices, and improved customer friendly service. Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. : Certain statements in this news release may contain forward-looking information within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended. All statements, other than statements of fact, included in this release, including, without limitation, statements regarding potential future plans and objectives of the company, are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. |
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