Atlanta, April 19, 2022 (GLOBE NEWSWIRE) -- UC Asset LP (OTCQX: UCASU) management announces that the company will likely report better profit results for both its fiscal years of 2021 and 2020, after the Company switched its accounting method from fair market value accounting to historical cost accounting.
“We will likely report a $0.12 per share net income for the fiscal year of 2021, comparing to our previous projection of $0.10 per share profit,” declares Greg Bankston, managing partner of UC Asset. “This net income, combined with a $0.03 per shear net equity increase resulting from buyback of shares, will likely lead to a $0.15 per share net equity increase for our shareholders, in the year of 2021.”
The Company will also restate its 2020 financials and will likely report a significantly higher profit for the year of 2020. It previously reported a meager profit less than $0.002 per share. “Now it looks like that we will report $0.021 per share net profit for 2020, which is a ten times increase of net profit,” says Bankston.
The change of accounting method was a decision by the Company’s management, in light of SEC (Security and Exchange Commission) staff’s conclusion that the Company did not meet the criteria to apply investment company accounting, i.e., fair market value accounting. The Company had historically used investment company accounting based on its understanding of related rules, and had presented its argument for applying fair value accounting to the staff of SEC. But SEC objected the company’s argument. Last month, the Company filed a Form 8-K, which announced the accounting method change, and declared that its previously financial reports, as well as projections, should no longer be relied upon.
“Fair value accounting and historical cost accounting are both GAPP accounting methods, and there is not necessarily any superiority of either one over the other. It’s just a matter of which method should be applied to us. We will respect the staff of SEC’s opinion on this matter, and we will switch to historical cost accounting for our upcoming financial reports,” says Larry Wu, founder of UC Asset.
“Different accounting methods would present a company’s financial situation from different perspectives,” elaborates Wu. “In case of our Company, fair value accounting would spread the investment gain/loss from a portfolio property over the whole period when we hold this property, while historical accounting will report all investment gain/loss at the moment when we sell the property. Most of our investments are profitable. Therefore, historical accounting will report less profit for any fiscal year when we sell less properties, and report more profit when we sell more properties, in comparison to fair value accounting.”
UC Asset did sell a large part of its portfolio properties in the year 2020 and 2021, as the Company started to exit most of its investments in residential properties, for the purpose to invest in income producing properties, such as cannabis properties and Airbnb properties. As a result, the Company will likely report higher profits for the year 2020 and 2021.
“Our financials are still subject to auditing,” cautions Bankston, managing general partner of UC Asset. “The final results may vary significantly from what we have discussed here.”
Bankston confirms that if the Company will distribute $0.10 per share dividend to all shareholders who held UCASU shares by the end of December 31, 2021, after its 2021 financials are audited.
Bankston also confirms that the company are committed to seek an up-list to NYSE American or NASDAQ Small Cap, combined with a secondary public offering of approximately $10-30 million, and are engaging investment bankers for these business goals.
About UC Asset LP
UC Asset LP is a limited partnership formed for the purpose of investing in real estate with innovative strategies, concentrating in metropolitan areas of Atlanta, GA. For more information about UC Asset, please visit: www.ucasset.com
Disclaimer:
This News Release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause our actual results, performance or achievements, or industry results, to differ materially from any these statements. You are cautioned not to place undue reliance on any those forward-looking statements. Except as otherwise required by the federal securities laws, we undertake no obligation to publicly update or revise any forward-looking statements after the date of this news release. None of such forward-looking statements should be regarded as a representation by us or any other person that the objectives and plans set forth in this News Release will be achieved or be executed.
For More Information Contact:
Christal Jordan | Executive Director, UC Asset LP
cjordan@ucasset.com | 678-499-0297
