Immaterial Corrections to Prior Period Financial Statements

9 Months Ended

Sep. 30, 2017

Immaterial Corrections to Prior Period Financial Statements

Immaterial Corrections to Prior Period Financial Statements

15. Immaterial Corrections to Prior Period Financial Statements

The Company identified certain related party transactions with its controlling stockholder that had not been recognized as expenses in previously issued financial statements, the largest being the complimentary use by Company personnel of a golf facility owned by David and Gail Liniger.  The value of these benefits is required to be reflected as an expense in the financial statements with a corresponding increase to additional paid in capital.  The Company concluded that the omission of the expense associated with these transactions from prior period financial statements was immaterial to each affected reporting period and therefore amendment of previously filed reports was not required.  However, the Company corrected this immaterial error in the prior years included herein.  These adjustments resulted in an increase in “Selling, operating, and administrative expenses” with a corresponding decrease in “Net Income” in the Condensed Consolidated Statements of Income of $214,000 and $467,000 for the three and nine months ended September 30, 2016, respectively.  In addition, these adjustments resulted in an increase to “Additional paid-in capital” of $1,712,000, a decrease to “Retained earnings” of $803,000 and a decrease to “Non-controlling interest” of $909,000 in the Condensed Consolidated Balance Sheets as of December 31, 2016.  This adjustment to “Additional paid-in capital” in the Consolidated Balance Sheets includes adjustments of $584,000,  $575,000and $553,000 for the years ended December 31, 2016, 2015 and 2014, respectively.