HICKORY, NC, Aug. 31, 2018 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE - On August 31, 2018, Fortran Corporation ("Fortran") (OTC: FRTN), in consultation with its legal and financial advisors, concluded that it's condensed consolidated balance sheets as of September 30, 2017 and 2016, March 31, 2017 and 2016, and December 31, 2016 and 2015 and the related condensed consolidated statements of operations and condensed consolidated statements of cash flows for the periods then ended, and it's condensed consolidated balance sheets as of June 30,2017 and 2016 and the related condensed consolidated statements of operation and condensed consolidated statements of cash flows for the year then ended (collectively, the "Financial Statements"), shall no longer be relied upon because of an error in such Financial Statements.
The error relates to the accounting treatment of Fortran's acquisition of an 80% interest in each of Tower Performance Construction, Inc. and Tower Performance, Inc. (collectively, the "Subsidiaries"), which interests were acquired pursuant to the terms of a Stock Purchase Agreement dated effective as of October 30, 2015. In connection with the acquisition of the 80% interest in each of the Subsidiaries, Fortran entered into an Operations Agreement (the "Operations Agreement") with the remaining 20% owners of the Subsidiaries. The Operations Agreement contains provisions that effectively shift the management control of the Subsidiaries from Fortran to the 20% owners. Because of this shift in control, pursuant to applicable generally accepted accounting principles, the acquisition of the Subsidiaries must be accounted for as an "investment" rather than as a "purchase." This change in accounting treatment requires that the financial results of the Subsidiaries be reported on an investment basis rather than on a consolidated basis in Fortran's financial statements.
Fortran anticipates that it will issue restated unaudited Financial Statements in the near future to eliminate the consolidation of the Subsidiaries financial statements with those of Fortran and, in lieu thereof, to report the acquisition of the Subsidiaries as an investment on Fortran's financial statements. When completed, the restated financial statements will be filed on OTCMarkets.com
ABOUT FORTRAN CORPORATION:
Fortran Corporation is a telecommunications system integrator dedicated to designing, sourcing, implementing and maintaining complex communication solutions. Fortran is converting the historical and traditional telecom business model to a Telecom-As-A-Service ("TaaS") and is comprised of engineering and design, network service, technical certifications, regional sales teams, remote monitoring, on-site service, dedicated sales and engineering. In October 2015, Fortran acquired 80% interest in Tower Performance Construction, Inc. and Tower Performance, Inc. with offices in Texas, New Jersey and Pennsylvania. http://www.tpict.com.
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With the exception of historical information, the matters discussed in this press release including, without limitation, the ability of Fortran Corporation to complete its recent financial statements and file such financial statements with the OTC Markets Group are forward-looking statements and considerations that involve a number of risks and uncertainties. The actual future results of Fortran Corporation could differ from those statements. Factors that could cause or contribute to such differences include, but are not limited to, the ability of Fortran Corporation to successfully complete its restated financial statements, and other events, factors and risks previously and from time to time disclosed in Fortran Corporation's filings with the OTC Markets Group including specifically, those factors set forth in any "Risk Factors" section contained in such filings.