ICTV BRANDS INC. (OTCMKTS:ICTV) Files An 8-K Non-Reliance on Previously Issued Financial Statements or a Related Audit Report or Completed Interim ReviewItem 4.02 Non-Reliance on Previously Issued Financial Statements or a Related Audit Report or Completed Interim Review.
On November 6, 2017 the Board of Directors of ICTV Brands Inc. (the “Company”), upon recommendation of management, determined the following previously issued financial statements should no longer be relied upon:
| ● | The Company’s condensed consolidated financial statements for the quarter ended June 30, 2017, which were included in the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2017. |
The conclusion was based on the discovery that one category of inventory was counted twice, resulting in an overstatement of the inventory balance. The financial impact is a decrease in inventory of $1,065,555 and an increase in the cost of sales and net loss of $1,065,555 for the three and six months ended June 30, 2017. Management discussed the matter with the Company’s independent auditors, EisnerAmper LLP, and determined that the effect of such errors were material. As a result, the Company has decided to restate the consolidated financial statements for the quarter ended June 30, 2017. The financial statements included within the Quarterly Report noted above should no longer be relied upon.
The Company will file amendments to its Quarterly Report on Form 10-Q for the quarter ended June 30, 2017 in which the financial statements for the quarter ended June 30, 2017 will be restated.
About ICTV BRANDS INC. (OTCMKTS:ICTV)
ICTV Brands, Inc., formerly International Commercial Television, Inc., sells various health, wellness and beauty products, as well as miscellaneous consumer products through a range of sales channels throughout the United States and internationally. The Company’s segments include direct response television (DRTV) Consumer and International Third Party Distributor. It develops, markets and sells products through a multi-channel distribution strategy, including DRTV, digital marketing campaigns, live home shopping, traditional retail and e-commerce market places, and its international third-party distributor network. It offers primarily health, beauty and wellness products, as well as various consumer products, including DermaWand, a skin care device; DermaVital, a skin care line; the CoralActives brand of acne treatment and skin cleansing products; Derma Brilliance, a skin care resurfacing device; Jidue, a facial massager device, and Good Planet Super Solution, a cleaning agent.