Ominto, Inc. (OTCMKTS:OMNT) 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 October 31, 2017, upon the recommendation of the Audit Committee of Ominto, Inc. (the “Company”), the Board of Directors (the “Board”) of the Company determined that the condensed consolidated financial statements for (i) the quarter ended December 31, 2016, included in the Company’s Quarterly Report on Form 10-Q filed on February 14, 2017 (the “ Q1 Report”) and (ii) the quarter ended March 31, 2017, included in the Company’s Quarterly Report on Form 10-Q filed on May 16, 2017 (the “ Q2 Report” and together with the Q1 Report, the “Reports”) should no longer be relied upon.
The Board based its determination not to rely upon the financial statements contained in the Reports on the financial impact of treasury stock involved in the Company’s December 2016 share exchange agreement with Lani Pixels, on certain sales incentives made in the form of equity awards to non-employees and on other equity issuances made to employees.
The Audit Committee has discussed the errors in the Reports with the Company’s independent auditors, Friedman, LLP and determined that such errors were material. As a result, the Company has decided to file amendments to the Reports in which the financial statements contained therein will be restated as soon as practicable.
About Ominto, Inc. (OTCMKTS:OMNT)
Ominto, Inc. (Ominto), formerly DubLi, Inc., is engaged in online cash back shopping. The Company’s shopping portal serves customers in approximately 100 countries. Using its consumer-adaptive e-commerce sites, shoppers are linked and can browse third party Websites with different categories of products, which Websites feature, including international and local brands, travel, coupons, discounts and vouchers. The Company offers its product and service lines in the E-Commerce and Memberships segment, which includes business license fees, membership subscription fees and commission income, and advertising and marketing programs. The Company has adapted its Cash Back platform to serve over 10 international markets in approximately 10 languages and currencies. Its Websites feature various regional and international brands, including Amazon.com, Zalando, Groupon and Expedia. Its e-commerce platform allows consumers to shop at online stores and earn cash back with each purchase.