DS Healthcare Group Inc (NASDAQ:DSKX) Files An 8-K

The Audit Committee of the Board of Directors of DS Healthcare Group Inc (NASDAQ:DSKX), based on discussion with the Company’s Chief Financial Officer and independent registered public accounting firm, determined that the previously issued financial statements for the year ended December 31, 2014 and the interim unaudited financial statements for the first three quarters of the fiscal years ended December 31, 2014 and December 31, 2015 should not be relied upon because of errors identified in such financial statements.

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The conclusion relates to correcting the accounting treatment regarding several adjustments which the Chief Financial Officer  and independent accounting firm became aware of in the course of audit and the preparation of the Company’s financial statements for the fiscal year ended December 31, 2015 and the periods ended March 31, 2016 and June 30, 2016,  The adjustments include  changes to inventory values, provisions for bad debt, revenue recognition issues, credit memos, equity issuances, accounts receivable and accounts payable, cost of goods sold, certain expense accounts, and the treatment of valuation of certain assets.

As a result of this determination, the Company will restate its financial statements for the foregoing dates and periods, which restatements will be reflected in the restated unaudited financial statements to be contained in amended Form 10-Q’s for the first three quarters of the fiscal years ended December 31, 2015.  The restated audited financial statements for the fiscal year ended December 31, 2014 will be contained in the Form 10-K for the fiscal year ended December 31, 2015.

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