GULFSLOPE ENERGY, INC. (OTCMKTS:GSPE) Files An 8-K Non-Reliance on Previously Issued Financial Statements or a Related Audit Report or Completed Interim Review
Item 4.02
The Audit Committee of the Board of Directors of GulfSlope Energy, Inc. (the “Company”) after consultation with management and discussions with BDO USA LLP, the Company’s independent registered public accounting firm, concluded on September 24, 2019 that the Company’s financial statements as of and for the three and six months ended March 31, 2019, should not be relied upon due to an error related to the recording of bad debt expense. With respect to the Quarterly Report on Form 10-Q filed on May 15, 2019, for the fiscal quarter ended March 31, 2019, the balance sheet information as of March 31, 2019, the statement of operations for the three months and six months ended March 31, 2019, the statement of stockholders’ equity (deficit) for the three and six months ended March 31, 2019, and the statement of cash flows for the six months ended March 31, 2019 will need to be corrected to reflect the reversal of an allowance for bad debts and corresponding overstatement of bad debt expense, anticipated to be $672,500. It is anticipated that this will result in a decrease of general and administrative expense and net loss, an increase in total assets and an increase in shareholders’ equity in this same amount; however, these amounts are preliminary and subject to change. The Company will file as soon as practical with the SEC Form 10-Q/A for the three and six months ended March 31, 2019, that includes the restated financial statements and footnotes that are required to be filed as well as the revised narrative disclosure impacted by the restated financial statements.
The Company is assessing potential remedial actions relating to the Company’s accounting controls, as well as additional procedures and process improvements, and plans to implement such remedial actions as soon as practicable.
About GULFSLOPE ENERGY, INC. (OTCMKTS:GSPE)
GulfSlope Energy, Inc. (GulfSlope) is an independent oil and natural gas exploration company. The Company’s interests are concentrated in the United States Gulf of Mexico (GOM) federal waters offshore Louisiana. The Company focuses on identifying oil and gas prospects. As of September 30, 2015, the Company had identified and acquired leases on approximately 20 prospects containing hydrocarbon deposits. As of September 30, 2015, the Company had leased approximately 20 federal Outer Continental Shelf blocks (leases). As of September 30, 2015, the Company had licensed approximately 2.2 million acres of three-dimensional (3D) seismic data in its area of concentration and evaluated the data using interpretation technologies. As of September 30, 2015, the Company had not generated any revenues.
