Effective
June 16, 2008, the Registrant was advised that it’s certifying auditors,
Williams & Webster, P.S., have resigned. The Registrant was notified of such
resignation on June 18, 2008.
The
auditor’s reports issued by Williams & Webster, P.S. for the past two fiscal
years did not contain an adverse opinion, a disclaimer of opinion, nor were the
reports qualified or modified as to audit scope, accounting principles or
uncertainty other than the ability to continue as a going concern. During period
covered by the past two fiscal years and the subsequent interim period to June
18, 2008, there were no disagreements between the Registrant and Williams &
Webster, P.S. on any matter of accounting principles or practices, financial
statement disclosure or auditing scope or procedure which, if not resolved to
the satisfaction of Williams & Webster would have caused them to make
reference to the matter in its reports on the Registrant's financial statements.
However, as was disclosed in the report on Form 8K/A dated March 3,
2008, Williams & Webster, P.S. withdrew its previously issued
audit report for the year ended December 31, 2006. In the report on
Form 8-K filed February 27, 2008, as referred to by the Form 8-K/A filed March
3, 2008, the Registrant acknowledged the need to restate prior year’s financial
statements concerning the treatment of goodwill previously recognized in an
acquisition occurring in the year ended December 31, 2006.
Williams
& Webster, P.S. withdrew their report for the 2006 financial
statements and have subsequently resigned as auditors. The Registrant has not as
yet filed restated financial statements for the periods previously
described in the reports on Form 8-K concerning the treatment of goodwill
arising from an acquisition, nor has the information been provided to Williams
& Webster, P.S. A committee of the Board of
Directors discussed this situation with Williams & Webster, P.S.
who have not provided any additional audit services since the need to
restate the financial statements was determined. The Registrant has
authorized Williams & Webster, P.S. to respond fully to any inquiries of the
Registrant’s successor independent accountants concerning any matter described
in this report
The
Registrant has provided to a copy of the disclosures in this report to Williams
& Webster, P.S. and the Registrant has requested a letter from the auditors
addressed to the Commission confirming the statements made by the Registrant in
this report.
A copy of
that letter is attached as an exhibit to this report.