Galactic had previously recorded the unpaid balance of the Bodie property purchase cost of $23.1 million(US) in shareholders’ equity, on the basis of its intention to issue shares to pay this amount.
The company is now recording the unpaid balance as a liability to recognize its option to pay the majority ($17.5 million) of this balance in cash or in shares. As a result, the company has increased its loss for 1988 to $1.44 per share from $1.41 per share previously reported.
The financial restatement has also reduced Galactic’s first-quarter earnings for 1989 from 7 cents a share based on earnings of $2.34 million to 5 cents a share.
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