iMergent to Restate Financial Statements Based upon Correction of Company's Interpretation of GAAP; Accounting Changes Have No Impact on Cash Flows and Company's Operations.OREM, Utah Orem is an incorporated town in the north-central part of the state of Utah in Utah County. It is adjacent to Provo, Lindon, and Vineyard and is about 45 miles south of Salt Lake City. As of the 2000 census, the city had a total population of 84,324. -- Please replace the release with the following corrected version due to multiple revisions. The release reads: IMERGENT TO RESTATE FINANCIAL STATEMENTS BASED UPON CORRECTION OF COMPANY'S INTERPRETATION OF GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). ; ACCOUNTING CHANGES HAVE NO IMPACT ON CASH FLOWS AND COMPANY'S OPERATIONS iMergent, Inc. (AMEX AMEX See: American Stock Exchange : IIG IIG In Ieder Geval (Dutch: Anyway) IIG Iraqi Interim Government IIG Indian Institute of Geomagnetism (Navi Mumbai, India) IIG Infinity Incentive Group (Scottsdale, AZ) ), a leading provider of eCommerce and software for small businesses and entrepreneurs, announced today that it will correct its historical revenue recognition policy to cash basis from accrual basis A method of accounting that reflects expenses incurred and income earned for Income Tax purposes for any one year. Taxpayers who use the accrual method must include in their taxable income any money that they have the right to receive as payment for services, once it for fiscal years 2002, 2003, 2004 and the first three quarters of fiscal 2005 in order to comply with generally accepted accounting principals (GAAP). Donald Danks, chairman and chief executive officer, stated, "After consultation with our independent registered public accountants Grant Thornton, on August 18th management concluded, with the concurrence CONCURRENCE, French law. The equality of rights, or privilege which several persons-have over the same thing; as, for example, the right which two judgment creditors, Whose judgments were rendered at the same time, have to be paid out of the proceeds of real estate bound by them. Dict. de Jur. h.t. of the Audit Committee of the Board of Directors to correct accounting practices related to customer installment contracts installment contract n. an agreement in which payments of money, delivery of goods or performance of services are to be made in a series of payments, deliveries or performances, usually on specific dates or upon certain happenings. . As such, we will restate our historical revenues, earnings and balance sheets to reflect cash basis accounting. This change does not have an impact on our operations, and our previously reported cash flows will remain approximately the same." Robert Lewis For the actor named Robert Lewis still living as of 2007, see Robert Lewis (living)[1] Robert Lewis (16 March, 1909 – 23 November, 1997) was an American actor, director, drama teacher, author and founder of the influential Actors Studio in New York in 1947. , chief financial officer, stated, "As a portion of iMergent's software sales are financed, our historical financial statements using accrual basis accounting reflected a steady stream of receivables, cash payments and bad debt reserves. The restated financial statements using cash basis accounting will be more volatile demonstrating income and loss swings dependent upon the timing of the receipt of cash payments." Lewis continued, "On August 10th, iMergent announced the sale of its domestic trade receivables portfolio, the receipt of a Letter of Intent for the sale of its international receivables portfolio, and entered into an agreement for the ongoing sale of its domestic installment contracts. As a result of the agreement for the ongoing sale of the domestic installment contracts, these contracts will be converted to cash on a current basis. We are evaluating the impact of these agreements on revenue recognition." iMergent intends to submit its amended filing immediately following the audit by the company's independent registered public accounting firm. Following that the company will announce its financial results for the fiscal fourth quarter and year ended June 30, 2005, which management believes will be in September. On the call, management expects to discuss its business model and fiscal 2006 guidance. About iMergent iMergent provides eCommerce solutions to entrepreneurs and small businesses enabling them to market and sell their business product or idea via the Internet. Headquartered in Orem, Utah the company sells its proprietary StoresOnline(TM) software and training services, helping users build a successful Internet strategy to market products, accept online orders, analyze marketing performance, and manage pricing and customers. In connection with software, iMergent offers site development, web hosting Making a Web site available on the Internet. Many ISPs host a few personal Web pages for an individual at no additional cost above the monthly service fee, but the address is subordinate to the ISP; for example, www.friendlyisp.com/pat_smith. , marketing and mentoring products. iMergent typically reaches its target audience through a concentrated direct marketing effort to fill Preview Sessions, in which a StoresOnline expert reviews the product opportunities and costs. These sessions lead to a follow-up Workshop Conference, where product and technology experts train potential users on the software and encourage them to make purchases. iMergent, Inc. and StoresOnline are trademarks of iMergent, Inc. Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Statement Statements made in this press release that are not historical in nature constitute forward-looking statements within the meaning of the Safe Harbor Provision 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 of 1995. Such statements are based on the current expectations and beliefs of the management of iMergent and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Such risks and uncertainties include, without limitation, the company's continued ability to maintain cash flows and operations; the Company's ability to maintain revenues; the company continuing to have successful results; our being deemed to be in compliance with GAAP; the review and accounting for the sale of the domestic receivables; the ability to file its 10K in a timely manner; the timely completion of the amended filing; the ability to announce year end results in September; the company's ability to attract and retain key management and other personnel; the results of Class Action suits filed; employees complying with company policy and laws. For a more detailed discussion of factors that affect iMergent's operating results, please refer to its SEC reports including its most recent 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. and Form 10-Q Form 10-Q See 10-Q. . The company undertakes no obligation to update this forward-looking information. |
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