This excerpt taken from the PRVT 10-K filed Mar 31, 2006.
In connection with the preparation of the Companys 2005 annual financial statements, management of the Company identified a design problem in the Companys warehouse management information system and advised the Audit Committee and the Companys Board of Directors on March 21, 2006 that the previously issued 2004 financial statements require restatement to adjust the carrying value of inventory of DVDs by Euro 1,118 thousand. The Companys Chief Financial Officer also discussed the matter with the Companys independent accountants. Both the Audit Committee and the Companys Board of Directors agreed on the same date to follow the advise of management to restate the 2004 financial statements.
F - 10
PRIVATE MEDIA GROUP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The previously reported total and per share amounts and the effects of this restatement on the previously reported results of operations for 2004, and the restated amounts are as follows: