VISUALANT, INCORPORATED (OTCMKTS:VSUL) 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
VISUALANT, INCORPORATED (OTCMKTS:VSUL) Files An 8-K Non-Reliance on Previously Issued Financial Statements or a Related Audit Report or Completed Interim Review
On June 1, 2017, management of Visualant Incorporated (the “Company”) concluded that the previously filed unaudited consolidated financial statements of the Company as of and for the quarterly period ended December 31, 2016 required restatement to account for the subsequent determination by management that there had been a full impairment of goodwill as it relates to TransTech Systems. Inc., and such impairment was material to our financial statements.
As a result of the impairment, the consolidated financial statements for the quarter ended December 31, 2016 contained in our Quarterly Report on Form 10-Q as filed with the Commission on February 21, 2017 should no longer be relied upon.
We have restated our financial statements for the quarterly period ended December 31, 2016 to reflect the aforementioned changes. The amendment and restatement is included in the Company’s Form 10-Q/A for the period ended December 31, 2016 as filed on June 5, 2017. The effect of the restatement on specific line items in the Consolidated Statement of Operations for the three months ended December 31, 2016 was to increase Impairment of goodwill, Operating loss, Loss before income tax and Net Loss by $500,000 and our Loss per share by $0.15 per share to $0.81. The effect of the restatement on the specific line items in the Consolidates Balance Sheet at December 31, 2016 was to reduce Goodwill, Current assets, Total assets, Retained earnings, Total stockholders’ equity and Total liabilities and stockholders’ equity by $500,000.
The Company’s management discussed the matters disclosed in Item 4.02 of this filing with SD Mayer & Associates, LLP, the Company’s independent registered certified public accounting firm.
About VISUALANT, INCORPORATED (OTCMKTS:VSUL)
Visualant, Incorporated is focused primarily on the development of ChromaID, a technology that uniquely identifies and authenticates any substance. The Company is in the process of commercializing its ChromaID technology. The Company’s ChromaID utilizes light at the photon (elementary particle of light) level through a series of emitters and detectors to generate a unique signature or fingerprint from a scan of any solid, liquid or gaseous material. This signature of reflected or transmitted light is digitized, creating a unique ChromaID signature. Each ChromaID signature consists of from hundreds to thousands of specific data points. In normal operation, a ChromaID master or reference scan is generated and stored in a database. The scan head can then scan similar materials to identify, authenticate or diagnose them by comparing the new ChromaID digital signature scan to that of the original or reference ChromaID signature or scan result.
Visualant, Incorporated is focused primarily on the development of ChromaID, a technology that uniquely identifies and authenticates any substance. The Company is in the process of commercializing its ChromaID technology. The Company’s ChromaID utilizes light at the photon (elementary particle of light) level through a series of emitters and detectors to generate a unique signature or fingerprint from a scan of any solid, liquid or gaseous material. This signature of reflected or transmitted light is digitized, creating a unique ChromaID signature. Each ChromaID signature consists of from hundreds to thousands of specific data points. In normal operation, a ChromaID master or reference scan is generated and stored in a database. The scan head can then scan similar materials to identify, authenticate or diagnose them by comparing the new ChromaID digital signature scan to that of the original or reference ChromaID signature or scan result.