HARBIN, China, April 7 /PRNewswire-Asia/ -- China Sky One Medical, Inc. ("China Sky One Medical" or "the Company") (Nasdaq: CSKI), a leading fully integrated pharmaceutical company producing over-the-counter drugs in the People's Republic of China ("PRC"), today announced that an extension notification filed with the Securities and Exchange Commission for its Annual Report on Form 10-K on March 31, 2009, is related to a technical non-cash accounting issue regarding the treatment of 3 million shares of the company's stock owned by China Sky One's Chairman that were placed in escrow as part of its private placement on January 31, 2008 as part of a "make good" provision to achieve specified earnings per share targets, because if the company achieved the targets for both 2007 and 2008, the escrowed shares will be returned to the company's chairman. The company is working closely with its current and prior auditors, and seeking additional guidance from SEC, on the issue as to whether these escrow shares will lead the company to record a non-cash compensation expense during 2008. This is the only outstanding issue that has delayed the filing of its annual report on form 10-K.
On a pro forma basis that excludes the impact of any potential non-cash, non-operational expense related to the "make-good" shares, the Company reaffirmed that it met its prior 2008 revenue estimate of $88-$90 million, and its full year 2008 operational net income estimate of approximately $27-$28 million.
"We want to reassure our shareholders that the delay in the release of our annual results is due to the pending resolution of these complex, non-cash accounting issues and has no bearing on the fundamentals of our business," said Mr. Yan-Qing Liu, Chairman and CEO of China Sky One Medical. "We are currently working with our auditors and the Securities and Exchange Commission to resolve this technical non-cash accounting issue and look forward to issuing our annual results on Form 10-K before April 15, 2009."
About China Sky One Medical, Inc.
China Sky One Medical, Inc., a Nevada corporation, is a holding company. The Company engages in the manufacturing, marketing and distribution of pharmaceutical, medicinal and diagnostic products. Through its wholly-owned subsidiaries, Harbin Tian Di Ren Medical Science and Technology Company ("TDR"), Harbin First Bio-Engineering Company Limited ("First"), Heilongjiang Tianlong Pharmaceutical, Inc. ("Tianlong") and Peng Lai Jin Chuang Pharmaceutical Company ("Jin Chuang") the Company manufactures and distributes over-the-counter pharmaceutical products, which make up its major revenue source. For more information, visit http://www.skyonemedical.com .
Safe Harbor Statement
Certain of the statements made in the press release constitute
forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by the use of forward-looking terminology such as "believe," "expect," "may," "will," "should," "project," "plan," "seek," "intend," or "anticipate" or the negative thereof or comparable terminology. Such statements typically involve risks and uncertainties and may include financial projections or information regarding the progress of new product development. Actual results could differ materially from the expectations reflected in such forward-looking statements as a result of a variety of factors, including the Company's ability to file its Form 10-K within the next fifteen days, risks associated with the effect of changing economic conditions in The People's Republic of China, variations in cash flow, reliance on collaborative retail partners and on new product development, variations in new product development, risks associated with rapid technological change, and the potential of introduced or undetected flaws and defects in products, and other risk factors detailed in reports filed with the Securities and Exchange Commission from time to time.
For more information, please contact:
Company Contact:
China Sky One Medical, Inc.
Mr. Yu-Bo Hao, CFO
Tel: +86-451-5399-4069
Email: china_sky_one@yahoo.cn
Investor Relations Contact:
CCG Investor Relations
Mr. Crocker Coulson, President
Tel: +1-646-213-1915
Email: crocker.coulson@ccgir.com
Web: http://www.ccgirasia.com
