Royal Coal Corp. Refiles Interim Financial Statements
14.03.2011 | Marketwire
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR RELEASE, PUBLICATION, DISTRIBUTION OR DISSEMINATION DIRECTLY, OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES.TORONTO, ONTARIO -- (Marketwire] - March 14, 2011) - Royal Coal Corp. (TSX VENTURE:RDA) ("Royal Coal" or the "Company") announces the refiling of its interim consolidated financial statements and management discussion and analysis for the three and nine month periods ended September 30, 2010 and the associated CEO and CFO certificates (the "Third Quarter Financial Statements"). The restatement will not affect the cash flows or cash position of the Company.
The Third Quarter Financial Statements have been restated due to a review of accounting policies and estimates by the Company and the following revisions have been made to the previously filed information.
(All financial figures in this release are expressed in US dollars unless otherwise stated)
1. Due to a revaluation of the fair market value of certain notes payable, as required under CICA Handbook EIC 88, the Company reduced the current portion of the Notes Payable on its balance sheet as at September 30, 2010 by $900,000 and reduced Financing Fees and Gain on Extinguishment of Debt on its income statement for the three and nine months ended September 30, 2010 by $900,000. The revaluation resulted in a decrease in net loss by $900,000 for the three and nine months ended September 30, 2010.
2. Due to an adjustment to the valuation of options that were extended during the period, the Company decreased its Stock Based Compensation expense on its income statement for the three and nine months ended September 30, 2010 by $285,671 and decreased its Contributed Surplus on its balance sheet as at September 30, 2010 by $285,671. The revaluation resulted in a decrease in net loss by $285,671 for the three and nine months ended September 30, 2010.
3. Due to adjustments to the valuation of warrants that were issued during the period, the Company decreased the value of Warrants on its balance sheet as at September 30, 2010 by $833,621 and increased the value of its Capital Stock on its balance sheet as at September 30, 2010 by $833,621. The revaluation resulted in reclassifications in the Shareholders' Equity section on the balance sheet as at September 30, 2010.
4. The Company's comparative three and nine month financial statements have been amended to reflect the actual September 30, 2009 amounts.
About Royal Coal
Royal Coal is a coal exploration and production company, headquartered in Toronto, Ontario, Canada with a regional office in Hazard, Kentucky, U.S.A. whose primary business focus is developing producing surface coal mining operations in the Central Appalachian coal producing region of the United States, which includes parts of West Virginia, Virginia, Kentucky, Ohio, and Tennessee.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
For more information, please contact
Royal Coal Corp.
Tom Griffis, Chairman
(416) 861-8775
www.royalcoal.com