REDWOOD SHORES, Calif., Oct. 13, 2006 (PRIMEZONE) -- PureDepth(tm), Inc. (OTCBB:PDEP), a global leader in next-generation display technologies and a pioneer of multi-layer display technology MLD(tm), today announced that as part of its transition from foreign accounting principles, it will be reclassifying certain operating expenses and other income items for external reporting purposes.
As part of a current audit of unaudited financial results released earlier this year, the company recently reviewed the classification of its operating expenses and other income items. As a result of the review, certain amounts have been reclassified to conform to the current presentation. The net results of the reclassifications, which primarily affected the company's inception to date period, did not have an impact on previously reported financial position, cash flows, or results of operations.
"The company made a good-faith effort to reconcile its New Zealand-based expense and income classifications prior to executing its forward triangular merger with Diamond One, Inc., a Colorado corporation, in March," said Fred Angelopoulos, chief executive officer of PureDepth, Inc. "Further review subsequent to the merger indicated that some additional adjustments were necessary. These adjustments are reclassifications and do not affect bottom line reporting or earnings per share."
Supplemental schedules attached to this release entitled "Reclassification of Operating Expenses and Other Income Summary for Ten Months Ended January 31, 2006, Year ended March 31, 2005, and Inception to January 31, 2006," "Reclassification of Operating Expenses and Other Income for Periods ended April 30, 2005," and "Reclassification of Operating Expenses and Other Income for Periods Ended July 31, 2005," summarize the impact of the reclassification.
PureDepth, Inc.
Reclassification of Operating Expenses & Other Income
for Ten Months ended January 31, 2006, Year ended March 31, 2005
and Inception to January 31, 2006
Ten months ended January 31, 2006
--------------------------------------
as as
reported change reclassified
----------- --------- ------------
Selected Operating Expenses
Depreciation and
amortization $ 376,355 $ 0 $ 376,355
Sales and marketing 120,721 345,206 465,927
Professional fees 455,410 0 455,410
General and
administrative 3,134,053 (838,331) 2,295,722
Research and development 472,841 493,125 965,966
Loss from Operations $(4,653,665) 0 $(4,653,665)
Selected Other
Income/(Expense)
Grant receipts -- unchanged --
Other income -- unchanged --
Other Income/(Expense) $ 20,720 0 $ 20,720
Net loss $(4,632,945) $ 0 $(4,632,945)
Net loss per share $ (0.33) $ (0.00) $ (0.33)
Year ended March 31, 2005
--------------------------------------
as as
reported change reclassified
----------- --------- ------------
Selected Operating Expenses
Depreciation and
amortization $ 406,246 0 $ 406,246
Sales and marketing 402,892 754,217 1,157,109
Professional fees 483,548 0 483,548
General and administrative 2,114,981 (1,079,849) 1,035,132
Research and development 287,785 325,632 613,417
Loss from Operations $(3,710,525) 0 $(3,710,525)
Selected Other
Income/(Expense)
Grant receipts -- unchanged --
Other income -- unchanged --
Other Income/(Expense) $ 1,846,741 0 $ 1,846,741
Net loss $(1,863,784) $ 0 $(1,863,784)
Net loss per share $ (0.17) $ (0.00) $ (0.17)
Inception to January 31, 2006
--------------------------------------
as as
reported change reclassified
------------ --------- -------------
Selected Operating Expenses
Depreciation and
amortization $ 2,350,081 $ 42,896 $ 2,392,977
Sales and marketing 1,015,247 2,609,507 3,624,754
Professional fees 1,604,952 (32,776) 1,572,176
General and administrative 10,656,392 (4,758,298) 5,898,094
Research and development 1,831,611 2,138,671 3,970,282
Loss from Operations $(17,569,477) 0 $(17,569,477)
Selected Other
Income/(Expense)
Grant receipts 680,775 (82,020) 598,754
Other income 2,592,591 82,020 2,674,611
Other Income/(Expense) $ 2,719,812 0 $ 2,719,812
Net loss $(14,849,665) $ 0 $(14,849,665)
Net loss per share $ (2.57) $ (0.00) $ (2.57)
PureDepth, Inc.
Reclassification of Operating Expenses and Other Income
for Periods ended April 30, 2005
Three months ended April 30, 2005
--------------------------------------
as
as reported change reclassified
----------- -------- ------------
Selected Operating Expenses
Depreciation and
amortization $ -- $ -- $ --
Sales and marketing 182,251 10,062 192,313
Professional fees
General and administrative 330,267 (43,854) 286,413
Research and development 433,150 33,792 466,942
Loss from Operations (1,173,434) 0 (1,173,434)
Selected Other
Income/(Expense)
Grant receipts -- unchanged --
Other income -- unchanged --
Other Income/(Expense) 131,786 -- 131,786
Net loss $(1,041,648) $ 0 $(1,041,648)
Net loss per share $ (0.09) $ (0.00) $ (0.09)
Inception to April 30, 2006
-----------------------------------------
as
as reported change reclassified
------------ ----------- ------------
Selected Operating Expenses
Depreciation and
amortization $ 2,487,477 $ 42,896 $ 2,530,373
Sales and marketing 1,940,004 2,609,507 4,549,511
Professional fees 1,922,891 (32,776) 1,890,115
General and administrative 12,613,343 (4,758,298) 7,855,045
Research and development 2,993,158 2,138,671 5,131,829
Loss from Operations (22,068,067) 0 (22,068,067)
Selected Other
Income/(Expense)
Grant receipts 682,625 (82,020) 600,605
Other income 2,682,490 82,020 2,764,510
Other Income/(Expense) 2,855,945 0 2,855,945
Net loss $(19,194,475) $ 0 $(19,194,475)
Net loss per share $ (1.34) $ (0.00) $ (1.34)
PureDepth, Inc.
Reclassification of Operating Expenses and Other Income
for Periods ended July 31, 2005
Three months ended July 31, 2005
----------------------------------------
as as
reported change reclassified
----------- ---------- ------------
Selected Operating Expenses
Depreciation and
amortization $ -- $ -- $ --
Sales and marketing 182,144 (20,976) 161,168
Professional fees
General and administrative 715,569 (73,256) 642,313
Research and development $ 327,384 $ 94,232 $ 421,616
Loss from Operations (1,337,044) 0 (1,337,044)
Selected Other
Income/(Expense)
Grant receipts -- -- --
Other income -- -- --
Other Income/(Expense) -- -- --
Net loss $(1,340,693) $ 0 $(1,340,693)
Net loss per share $ (0.04) $ (0.00) $ (0.04)
Six months ended July 31, 2005
----------------------------------------
as as
reported change reclassified
----------- ---------- ------------
Selected Operating Expenses
Depreciation and
amortization $ -- $ -- $ --
Sales and marketing 364,395 (10,914) 353,481
Professional fees
General and administrative 1,045,836 (117,110) 928,726
Research and development $ 760,534 $ 128,024 $ 888,558
Loss from Operations (2,510,478) 0 (2,510,478)
Selected Other
Income/(Expense)
Grant receipts
Other income
Other Income/(Expense) 128,137 -- 128,137
Net loss $(2,382,341) $ 0 $(2,382,341)
Net loss per share $ (0.07) $ (0.00) $ (0.07)
Inception to July 31, 2006
----------------------------------------
as as
reported change reclassified
----------- ---------- ------------
Selected Operating Expenses
Depreciation and
amortization $ 2,573,423 $ 42,895 $ 2,616,318
Sales and marketing 2,082,016 2,609,508 4,691,524
Professional fees 1,980,496 (32,775) 1,947,721
General and administrative 13,724,185 (4,758,298) 8,965,887
Research and development $ 3,462,904 $ 2,138,671 $ 5,601,575
Loss from Operations (23,934,218) 0 (23,934,218)
Selected Other
Income/(Expense)
Grant receipts 682,625 (82,020) 600,605
Other income 2,676,821 82,020 2,758,841
Other Income/(Expense) 2,865,194 0 2,865,194
Net loss $(21,053,745) $ 0 $(21,053,745)
Net loss per share $ (1.32) $ (0.00) $ (1.32)
About PureDepth
PureDepth is an innovative technology company transforming the visual display experience by delivering award-winning MLD technology. Backed by 44 approved patents, this breakthrough in visualization is the first display technology that provides actual depth. The Company has, among others, a manufacturing license agreement with DRS Technologies (NYSE:DRS), and a sales, marketing and distribution license agreement with Sanyo Corporation (Nasdaq:SANYY) in Japan and business in medical, financial and consumer markets. Founded in 1999, the company is headquartered in Redwood Shores, California, with an engineering center located in New Zealand.
Forward-Looking Statements
This press release contains certain statements that are "forward-looking statements" and includes, among other things, discussions and disclosures of the company's expectations for the use of its technology in mobile handheld devices, the ability of 3D applications to be enabled for use with PureDepth's technology, and the likelihood of any resulting products to become widely accepted by the marketplace. Words such as, but not limited to, "may," "likely," "anticipate," "expect" and "believes" indicate forward-looking statements. Although PureDepth believes that the expectations reflected in these forward-looking statements are generally reasonable, it can give no assurance that such expectations will ultimately prove to be correct or materialize. All phases of PureDepth's business and operations are subject to a number of uncertainties, risks and other influences, most of which are outside its control, and any one or combination of which could materially and adversely affect the results of the Company's operations, and whether any forward-looking statements contained herein ultimately prove to be accurate.
PureDepth and MLD are trademarks of PureDepth, Inc. All other trademarks and registered trademarks are the property of their respective owners, without intent to infringe.