Trunkbow Completes Re-Audit of 2009 Financial Statements No Significant Changes to Previously Reported Financial Statements
BEIJING, July 6, 2012 /PRNewswire-Asia/ -- Trunkbow International Holdings Limited (NASDAQ: TBOW) ("Trunkbow" or the "Company"), a leading provider of Mobile Payment Solutions ("MPS") and Mobile Value Added Solutions ("MVAS") in China, today announced that the independent registered public accounting firm Holtz Rubenstein Reminick LLP ("HRR") has completed its review and audit of the Company's consolidated financial statements for the year ended December 31, 2009. Trunkbow has filed an amended 2010 annual report on Form 10-K/A with the U.S. Securities and Exchange Commission (the "SEC") containing HRR's audit report for the year ended December 31, 2009. There were no significant changes to the financial statements originally audited by the Company's outside auditors, Bernstein & Pinchuk LLP ("B&P").
In reviewing the Company's Annual Report on Form 10-K for the year ended December 31, 2010, the SEC informed the Company that because its Chief Financial Officer, Ms. Alice Ye, was previously employed by B&P, and had performed more than 10 hours of work on the Trunkbow audit for the year ended December 31, 2008, it did not consider B&P "independent" as defined in the SEC's rules regarding auditor independence. The Company disagreed, arguing that the hiring of Ms. Ye was in accordance with an exemption for such situations involving emergency or unusual circumstances approved by the Company's board of directors or audit committee, and noting the limited work performed by Ms. Ye and her status as a non-partner in B&P at the time.
In the interests of investor transparency and to avoid a complicated on-going regulatory process in recognition of the SEC Staff's position on this matter, the Company engaged HRR to review and issue a new audit report on its consolidated financial statements for the year ended December 31, 2009.
"With our business positioned for significant growth in the second half of 2012, we have placed a great emphasis on transparency and credibility to both our shareholders and U.S. regulators," said Mr. Qiang Li, CEO of Trunkbow. "This was a simple disagreement between our Company and the SEC on the technical application of independence requirements. We are pleased that the re-audit by HRR was completed without the need for any restatements or financial adjustments. There was no disruption to our business or our progress toward Trunkbow's long-term strategic objectives. We have a number of compelling growth initiatives planned for the remainder of 2012 and are excited by what the future holds for our Company, and for the MPS market as a whole."
Trunkbow International Holdings (NASDAQ: TBOW) is a leading provider of Mobile Payment Solutions ("MPS") and Mobile Value Added Solutions ("MVAS") in PRC. Trunkbow's solutions enable the telecom operators to offer their subscribers access to unique mobile applications, innovative tools, value-added services that create a superior mobile experience, and as a result generate higher average revenue per user and reduce subscriber churn. Since its inception in 2001, Trunkbow has established a proven track record of innovation, and has developed a significant market presence in both the Mobile Value Added and Mobile Payment solutions markets. Trunkbow supplies its mobile payment solutions to all three Chinese mobile telecom operators, as well as re-sellers, in several provinces of China. For more information, please visit www.trunkbow.com.
Safe Harbor Statement
This press release contains forward-looking statements that reflect the Company's current expectations and views of future events that involve known and unknown risks, uncertainties and other factors that may cause its actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such forward looking statements involve known and unknown risks and uncertainties, including but not limited to uncertainties relating to the Company's relationship with China's major telecom carriers and its resellers, competition from domestic and international companies, changes in technology, contributions from revenue sharing plans and general economic conditions. The Company has based these forward-looking statements largely on its current expectations and projections about future events and financial trends that it believes may affect its financial condition, results of operations, business strategy and financial needs. You should understand that the Company's actual future results may be materially different from and worse than what the Company expects. Information regarding these risks, uncertainties and other factors is included in the Company's annual report on Form 10-K and other filings with the SEC.
SOURCE Trunkbow International Holdings Limited