NutraCea, a world leader in stabilized rice bran (SRB) nutrient research and technology, announced today that it has completed the restatements of its financial statements and filed with the U.S. Securities and Exchange Commission (SEC) its Annual Reports on Form 10K for fiscal years 2006, 2007 and for the first three quarters of 2008. All financial information presented in this press release is on a restated basis.
The audited financial statements, based on the findings of internal investigations initiated by the Audit Committee of the Company's Board of Directors during December 2008, in consultation with independent investigators retained by the Audit Committee, have been restated to correct errors and irregularities in the Audit Committee-led investigation and other accounting errors and irregularities identified by the Company in the course of the restatement period.
Jim Lintzenich, interim chief executive officer, stated, "We are pleased to have completed our review and the filing of our restated financials. During our investigation we identified material weaknesses in the Company's internal controls over financial reporting 2008. We have taken, and intend to continue to take appropriate actions to remediate these weaknesses."
As a result of these previously announced restatements full year revenue originally reported as $22.2 million for 2007 was restated to revenue of $12.7 million for 2007 and revenue of $18.1 million for full year 2006 was restated to revenue of $16.5 million. The Company originally reported a net loss of $(11.9) million for its full year ended December 31, 2007; the restated net loss for that period was $(18.0) million. A net loss of $(1.6) million was originally reported for full year 2006, following the restatement the Company reported a net income of $302,000 for the 12 months ended December 31, 2006.
Net revenues for the full year ended December 31, 2008 were $35.2 million compared to net revenues of $12.7 million for full year 2007. The Company reported a net loss of $(64.5) million or $0.40 per share, compared to a net loss of $(18.0) million, or $(0.14) per share for the twelve months ended December 31, 2007. The net loss for full year 2008 was primarily due to continued low gross margins as a result of excess capacity, a non-cash impairment charge adjustment to goodwill of approximately $32.3 million, and increased administrative costs as a result of the investigations and litigation.
NutraCea expects to file its Form 10-Q for the quarter ended March 31, 2009 in November 2009, and thereafter will file Forms 10-Q for the quarters ended June 30, 2009 and September 30, 2009. Following the reporting of its first three quarters, the Company will host a conference call to discuss year to date results and provide an update on its business. The conference call date will be announced separately.
The Company has set December 4, 2009 as the date for its Annual Shareholders Meeting.
The Board of Directors today appointed W. John Short to the position of Chief Executive Officer of the Company, replacing Interim CEO James C. Lintzenich, and to fill a vacancy on the Board of Directors. David Bensol, chairman of the board stated, "We are very pleased to have John assume this responsibility in leading the Company and thank Jim for his service during these past nine months."
The Board of Directors also announced that Wesley Clark, a director since June 2007 has resigned from the Board. David Bensol commented, "On behalf of the Board I want to extend our thanks to Wes for his contributions over the past two years."
On October 21 NutraCea received a letter from Wells Fargo Bank, N.A. stating that based on certain "Events of Default" the Bank has accelerated the entire principal balance due under NutraCea's loan agreements with Wells Fargo. Wells Fargo may exercise its right to set off against NutraCea's demand deposit account it has with Wells Fargo in order to partially satisfy the amounts due under the Agreement. NutraCea is continuing to work with Wells Fargo in order to resolve these issues.
NutraCea is a world leader in production and utilization of stabilized rice bran. NutraCea holds many patents for stabilized rice bran (SRB) production technology and proprietary products derived from SRB. NutraCea's proprietary technology enables the creation of food and nutrition products to be unlocked from rice bran, normally a waste by-product of standard rice processing. More information can be found in the Company's filings with the SEC and by visiting our website at http://www.NutraCea.com.
This release contains forward-looking statements, including statements regarding the timing of future periodic reports with the Securities and Exchange Commission and any possibility of a resolution of the loan defaults or other issues with Wells Fargo. These statements are made based upon current expectations and actual results may differ from those projected, due to various risks and uncertainties. NutraCea does not undertake to update forward-looking statements in this news release to reflect actual results, changes in assumptions or changes in other factors affecting such forward-looking information. Assumptions and other information that could cause results to differ from those set forth in the forward-looking information can be found in NutraCea's filings with the Securities and Exchange Commission, including NutraCea's most recent periodic reports, including NutraCea's most recent periodic reports.