PETROTERRA CORP. (OTCMKTS:PTRA) Files An 8-K Non-Reliance on Previously Issued Financial Statements or a Related Audit Report or Completed Interim Review
Item 4.02 Non-Reliance on Previously Issued Financial Statements
or a Related Audit Report or Completed Interim Review.
(a) On June 6, 2017, the management of PetroTerra Corp. (the
Company) concluded that, due to an error, the unaudited condensed
consolidated financial statements filed on May 15, 2017 in the
Quarterly Report on Form 10-Q for the quarter ended March 31,
2017, should no longer be relied upon.
The error, identified by management, is related to the issuance
of three convertible notes (the Notes) issued during the quarter
ended March 31, 2017, and prior to the execution of the share
exchange agreement with Save On Transport Inc. on March 30, 2017.
The proper treatment would have been to record the liability
associated with the Notes and accrual of any interest payable
associated with said Notes. In addition, the Notes should have
been evaluated under the provision of FASB ASC Topic No. 815-40,
Derivatives and Hedging Contracts in an Entitys Own Equity, to
determine proper accounting treatment and valuation.
The Company intends to restate the aforementioned financial
statements by amending its Quarterly Report on Form 10-Q for the
quarter ended March 31, 2017, as soon as reasonably practicable.
The Company discussed the matters disclosed in this Item 4.02 (a)
with the registrants independent registered public accounting
firm, Salberg Company, P.A.
About PETROTERRA CORP. (OTCMKTS:PTRA)
PetroTerra Corp. is a development-stage company. The Company holds oil and gas leases for property in the Central Utah Thrust Belt in Sevier County and Beaver County, Utah. As of March 31, 2016, the Company’s leases covered 5,950.54 gross acres in Sevier and Beaver counties in southwest Utah. The Company’s Sevier leases are UTU-89243 and UTU-89244, and its Beaver county lease is UTU-86466. As of March 31, 2016, the Company had not generated any revenues. The Company focuses on seeking a strategic alternative both inside and outside of the oil and gas market. The Company was an independent exploration and development company focused on the acquisition of property.