Tire recycler GreenMan Technologies, Lynnfield, Mass., has announced that it is delaying the filing of its Form 10-KSB for its fiscal year ended Sept. 30, 2005.
The company says the delay will be no longer than 30 days as it finalizes the accounting treatment of the pending divestiture of its Georgia operating assets.
“Due to the magnitude of the operating losses incurred by our Georgia subsidiary, management adopted a plan in September 2005 to dispose of all Georgia operating assets,” Chuck Coppa, GreenMan CFO, says in a press release. “Accordingly, we have written down these assets to their estimated fair market value and anticipate recording an estimated non-cash loss on disposal of between $2.5 and $3.5 million at Sept. 30, 2005.”
In addition to the Georgia divestiture, which is expected to be completed in the next few weeks, according to Coppa, GreenMan also divested its Tennessee operations Sept. 13, 2005. The company estimates the loss on disposal from the Tennessee divesture to be $416,000 for the fiscal year.
“We estimate that the aggregate losses associated with our Georgia and Tennessee subsidiaries included in the results for the fiscal year ended Sept. 30, 2005, to be between $8 million and $9 million,” Coppa says. “In addition, we have determined the net book value of corporate-wide goodwill exceeded the estimated fair market value and accordingly will record a non-cash impairment loss of $3.5 million associated with the write-off of all goodwill at Sept. 30, 2005. We estimate the aggregate net loss for the fiscal year ended Sept. 30, 2005, to be between $14 million and $15 million as compared to approximately $2.6 million for the year ended Sept. 30, 2004.”
No more results found.