Nerium Biotechnology, Inc.

December 01, 2014 18:47 ET

Nerium Biotechnology Reports Restated Financial Results

SAN ANTONIO, TEXAS--(Marketwired - Dec. 1, 2014) - Nerium Biotechnology, Inc. (the "Company"), announced today that, due to a mathematical formula error in its equity investment calculations, it has restated its consolidated balance sheets as at September 30, 2013; December 31, 2013; March 31, 2014 and June 30, 2014 and its consolidated statements of income and comprehensive income for the three-month and nine-month periods ended September 30, 2013; the year ended December 31, 2013; the three-month period ended March 31, 2014; and the three-month and six-month periods ended June 30, 2014. There was no significant impact on the cash flows of the Company as these adjustments represent non-cash items.

Restatement of Documents

The Company intends to include the effect of this restatement, where applicable, in its interim condensed consolidated financial statements for September 30, 2014 to be filed with the Canadian securities regulators and available for review at www.sedar.com. The SEDAR filing also will include a related management's discussion and analysis.

Impact of the Restatement

The following tables summarize the corrections on each of the affected consolidated financial statement line items presented in the respective financial statements:

Changes to the Interim Condensed Consolidated Balance Sheet as at September 30, 2013:
As previously reported September 30, 2013 Restatement Adjustment Restated September 30, 2013
$ $ $
Equity investment 5,018,708 1,770,053 6,788,761
Total assets 27,928,028 1,770,053 29,698,081
Income taxes payable 2,256,791 774,188 3,030,979
Total liabilities 8,116,222 774,188 8,890,410
Retained earnings 5,421,215 995,865 6,417,080
Total stockholders' equity 19,811,806 995,865 20,807,671
Changes to the Interim Condensed Consolidated Statement of Operations and Comprehensive Income for the nine-month period ended September 30, 2013:
As previously reported September 30, 2013 Restatement Adjustment Restated September 30, 2013
$ $ $
Earnings from equity investment 7,224,893 1,770,053 8,994,946
Provision for income taxes 4,522,916 774,188 5,297,104
Comprehensive income for the period (to controlling interest) 9,033,458 995,865 10,029,323
Earnings per share - Basic 0.25 0.03 0.28
Earnings per share - Diluted 0.25 0.03 0.28
Changes to the Interim Condensed Consolidated Statement of Operations and Comprehensive Income for the three-month period ended September 30, 2013:
As previously reported September 30, 2013 Restatement Adjustment Restated September 30, 2013
$ $ $
Earnings from equity investment 2,450,442 1,770,053 4,220,495
Provision for income taxes 1,624,815 774,188 2,399,003
Comprehensive income for the period (to controlling interest) 3,404,569 995,865 4,400,434
Earnings per share - Basic 0.09 0.03 0.12
Earnings per share - Diluted 0.09 0.03 0.12
Changes to the Consolidated Balance Sheet as at December 31, 2013:
As previously reported December 31, 2013 Restatement Adjustment Restated December 31, 2013
$ $ $
Equity investment 4,949,639 3,559,568 8,509,207
Total assets 27,745,758 3,559,568 31,305,326
Income taxes payable 1,597,488 672,818 2,270,306
Total liabilities 6,509,625 672,818 7,182,443
Retained earnings 6,163,135 2,886,750 9,049,885
Total stockholders' equity 21,236,133 2,886,750 24,122,883
Changes to the Consolidated Statement of Operations and Comprehensive Income for the year ended December 31, 2013:
As previously reported December 31, 2013 Restatement Adjustment Restated December 31, 2013
$ $ $
Earnings from equity investment 8,655,824 3,559,568 12,215,392
Provision for income taxes 6,651,003 672,818 7,323,821
Comprehensive income for the period (to controlling interest) 9,747,156 2,886,750 12,633,906
Earnings per share - Basic 0.27 0.08 0.35
Earnings per share - Diluted 0.27 0.07 0.34
Changes to the Interim Condensed Consolidated Balance Sheet as at March 31, 2014:
As previously reported March 31, 2014 Restatement Adjustment Restated March 31, 2014
$ $ $
Equity investment 9,468,048 2,810,637 12,278,685
Total assets 35,879,030 2,810,637 38,689,667
Income taxes payable 3,348,802 560,839 3,909,641
Total liabilities 8,876,125 560,839 9,436,964
Retained earnings 11,723,875 2,249,798 13,973,673
Total stockholders' equity 27,002,905 2,249,798 29,252,703
Changes to the Interim Condensed Consolidated Statement of Operations and Comprehensive Income for the three-month period ended March 31, 2014:
As previously reported March 31, 2014 Restatement Adjustment Restated March 31, 2014
$ $ $
Earnings from equity investment 4,518,409 (748,931 ) 3,769,478
Provision for income taxes 2,728,758 (111,979 ) 2,616,779
Comprehensive income for the period (to controlling interest) 5,589,650 (636,952 ) 4,952,698
Earnings per share - Basic 0.15 (0.01 ) 0.14
Earnings per share - Diluted 0.14 (0.01 ) 0.13
Changes to the Interim Condensed Consolidated Balance Sheet as at June 30, 2014:
As previously reported June 30, 2014 Restatement Adjustment Restated June 30, 2014
$ $ $
Equity investment 15,910,385 2,883,242 18,793,627
Total assets 44,684,849 2,883,242 47,568,091
Income taxes payable 4,977,275 423,167 5,400,442
Total liabilities 10,521,262 423,167 10,944,429
Retained earnings 18,496,237 2,460,075 20,956,312
Total stockholders' equity 34,163,587 2,460,075 36,623,662
Changes to the Interim Condensed Consolidated Statement of Operations and Comprehensive Income for the six-month period ended June 30, 2014:
As previously reported June 30, 2014
$
Restatement Adjustment
$
Restated June 30, 2014
$
Earnings from equity investment 10,960,746 (676,326 ) 10,284,420
Provision for income taxes 6,128,230 (249,651 ) 5,878,579
Comprehensive income for the period (to controlling interest) 12,365,706 (426,675 ) 11,939,031
Earnings per share - Basic 0.34 (0.01 ) 0.33
Earnings per share - Diluted 0.32 (0.01 ) 0.31
Changes to the Interim Condensed Consolidated Statement of Operations and Comprehensive Income for the three-month period ended June 30, 2014:
As previously reported June 30, 2014 Restatement Adjustment Restated June 30, 2014
$ $ $
Earnings from equity investment 6,442,337 72,605 6,514,942
Provision for income taxes 3,399,472 (137,672 ) 3,261,800
Comprehensive income for the period (to controlling interest) 6,826,055 110,278 6,936,333
Earnings per share - Basic 0.19 (0.00 ) 0.19
Earnings per share - Diluted 0.18 (0.00 ) 0.18

About Nerium Biotechnology, Inc.

Nerium Biotechnology, Inc. is a biotechnology company involved in the research, product development, manufacture and marketing of Nerium oleander-based products. The Company's shares are not listed on any stock exchange or quotation system.

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