-- Convertible debt issued in 2004 is reclassified as equity -- 2004 net loss decreased from $3.92M to $1.95M -- Q1 2005 net loss increased to $535K from $436K
SELLERSVILLE, Pa., July 22, 2005 (PRIMEZONE) -- Delta Mutual, Inc. (OTCBB:DLTM), specializing in energy recovery and construction services through environmentally friendly technologies and products, today announced a restatement of 2004 and first-quarter 2005 consolidated financial results due to a change in accounting treatment for $961,400 of convertible debt and detachable warrants issued in 2004, in accordance with Emerging Issues Task Force 00-27 ("EITF 00-27").
The change in accounting treatment in the restated consolidated financial statements decreased the Company's 2004 net loss from $3.92 million to $1.95 million. The loss per share was also decreased from $0.28 to $0.14. The restated Consolidated Balance Sheets at December 31, 2004, will reflect the elimination of $891,400 of long-term convertible debt. The first quarter of 2005 will also be restated to reflect a net loss of $534,620 from $435,920 with a corresponding increase in loss per share from $0.02 to $0.03. There are also corresponding changes to the Consolidate Statements of Shareholder's Deficiency and Consolidated Statements of Cash Flows for the 12 months ended December 31, 2004, and to the Consolidated Balance Sheets and Consolidated Statements of Cash Flows for the three months ended March 31, 2005.
Included in Amendment Number 1 to the Company's Form 10-KSB for the fiscal year ended December 31, 2004, as filed today with the SEC, are revisions of Notes 1, 6, 12, 14 and 15 to the restated consolidated financial statements. The Company shortly expects to file Amendment Number 1 to its Form 10-QSB for the three months ended March 31, 2005, in accordance with EIFT 00-27.
About Delta Mutual
Delta Mutual, Inc. specializes in energy recovery and construction services through environmentally friendly technologies and products currently operating through joint ventures in the Middle East, Far East and Puerto Rico. Delta employs technologies that efficiently recover energy sources from soil, water and other waste streams while simultaneously improving existing environmental conditions. The Company also employs an energy efficient building material system for construction projects that are initially taking place in Puerto Rico. www.deltamutual.com
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