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NOTE 2: RESTATEMENT OF 2010 FINANCIAL STATEMENTS
9 Months Ended
Sep. 30, 2011
Prior Period Reclassification Adjustment, Description
NOTE 2: RESTATEMENT OF 2010 FINANCIAL STATEMENTS

As discussed in our Form 10-Q/A for the quarterly period ended September 30, 2010, filed with the SEC on March 8, 2011, in conjunction with an internal review meeting of Flotation, our management reviewed the status of one of our long-term fixed price contracts (the “Contract”) that we entered into in November 2008 which was completed in the third quarter of 2011. As a result of this review, our management identified errors in the percentage-of-completion accounting model for revenue recognition pertaining to this Contract. On January 14, 2011, the Audit Committee of the Company’s Board of Directors concluded, based on recommendations from management, that, as a result of these errors, the Company’s unaudited condensed consolidated financial statements for the quarterly periods ended March 31, 2010, June 30, 2010 and September 30, 2010 should be restated. We filed the restated unaudited condensed consolidated financial statements on Form 10-Q/A for the quarterly periods ended March 31, 2010, June 30, 2010 and September 30, 2010, on March 8, 2011.

On the Condensed Consolidated Statement of Operations for the nine months ended September 30, 2010, the revision caused Revenues and Gross profit to be reduced by $1,433, which resulted in a corresponding $1,433 increase to Operating loss, Loss before income taxes and Net loss.  There was a $0.01 increase in Net loss per share.  On the Condensed Consolidated Statement of Cash Flows for the nine months ended September 30, 2010, the revision increased Net loss by $1,433 which was offset to Billings in excess of costs and estimated earnings on uncompleted contracts, for a net impact of $0 to Cash flows provided by operating activities.

On the Condensed Consolidated Statement of Operations for the three months ended September 30, 2010, the revision caused Revenues and Gross profit to be reduced by $1,023, which resulted in a corresponding $1,023 increase to Operating loss, Loss before income taxes and Net loss.  There was no impact to Net loss per share.