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TGAL » Topics » Item 9. Changes in and Disagreements with Accountants on Accounting and Financial DisclosureThis excerpt taken from the TGAL 10-K filed Jul 29, 2005. Item 9. Changes in and Disagreements with Accountants on Accounting and Financial DisclosureOn July 9, 2004, the Company changed independent registered public accounting firms from PricewaterhouseCoopers LLP (“PwC”) to Moss Adams LLP. During the period from April 1, 2002 through July 8, 2004 when PwC served as the Company’s independent registered public accounting firm, there were no reportable events, as that term is defined in Item 304(a)(1)(v) of Regulation S-K, except for a reportable condition related to: the Company’s accounting for its 2% Convertible Debentures Due 2011 (the “2% Convertible Debentures”) together with related debt issuance costs; and the expertise of the Company’s accounting personnel with respect to generally accepted accounting principles related to complex financing and other transactions. In response to the reportable condition, the Company restated its financial results and filed an amended quarterly report on Form 10-Q/A for the quarter ended December 31, 2003 which corrected an error in the accounting for the 2% Convertible Debentures and related debt issuance costs. The restatement reflected increased interest expense, net loss, net loss per share, accumulated deficit and additional paid-in capital as well as decreased current assets. The restatement did not impact any reported revenue, operating expenses or operating loss. Management believes that the reportable condition has been remediated. As of June 15, 2004, all of the Company’s 2% Convertible Debentures had been converted into the Company’s common stock. In addition, the Company expanded and enhanced its accounting function to include sufficient knowledge of generally accepted accounting principles related to complex financing and other transactions by adding a new certified public accountant to the Company’s accounting staff on June 15, 2004. This excerpt taken from the TGAL 10-K filed Jun 29, 2005. Item 9. Changes in and Disagreements with Accountants on Accounting and Financial DisclosureOn July 9, 2004, the Company changed independent registered public accounting firms from PriceWaterhouseCoopers LLP (“PWC”) to Moss Adams LLP. During the period from April 1, 2002 through July 8, 2004 when PWC served as the Company’s independent registered public accounting firm, there were no reportable events, as that term is defined in Item 304(a)(1)(v) of Regulation S-K, except for a reportable condition related to: the Company’s accounting for its 2% Convertible Debentures Due 2011 (the “2% Convertible Debentures”) together with related debt issuance costs; and the expertise of the Company’s accounting personnel with respect to generally accepted accounting principles related to complex financing and other transactions. In response to the reportable condition, the Company restated its financial results and filed an amended quarterly report on Form 10-Q/A for the quarter ended December 31, 2003 which corrected an error in the accounting for the 2% Convertible Debentures and related debt issuance costs. The restatement reflected increased interest expense, net loss, net loss per share, accumulated deficit and additional paid-in capital as well as decreased current assets. The restatement did not impact any reported revenue, operating expenses or operating loss. Management believes that the reportable condition has been remediated. As of June 15, 2004, all of the Company’s 2% Convertible Debentures had been converted into the Company’s common stock. In addition, the Company expanded and enhanced its accounting function to include sufficient knowledge of generally accepted accounting principles related to complex financing and other transactions by adding a new certified public accountant to the Company’s accounting staff on June 15, 2004. | EXCERPTS ON THIS PAGE:
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