NEW YORK , Nov. 17 /PRNewswire-FirstCall/ -- MSGI Security Solutions Inc. (OTC Bulletin Board: MSGIE) today released a statement relating to recent filings made to the Securities & Exchange Commission.
As recently stated in the Company's Annual Report on Form 10-KSB for the fiscal year ended June 30, 2008 ; the Company accounts for revenue recognition in accordance with Staff Accounting Bulletin No. 104, (SAB 104), which provides guidance on the recognition, presentation and disclosure of revenue in financial statements. Revenues are reported upon the completion of a transaction that meets the following criteria: (1) persuasive evidence of an arrangement exists; (2) delivery of our services has occurred; (3) our price to our customer is fixed or determinable; and (4) collectibility of the sales price is reasonably assured. Since the Company has a limited number of revenue transactions, that are each unique in nature, the Company reviews each transaction to determine that all revenue criteria are met.
In addition to the
These shipments, associated costs of products sold and related profits
were derived solely from the Company's relationships with Hyundai Syscomm
Corp, Apro Media Corp. and Hirsch Capital Corp. The Company will recognize
these revenues when and if the payments are received and collection is thus
assured. Had these shipments and their related costs been recognized in their
entirety during the year ended June 30, 2008 , the Company would have reported
a loss approximately
Select Non-GAAP Reconciliation
The Company incurred a net loss of approximately
To supplement MSGI's consolidated financial statements presented in the Annual Report on Form 10-KSB and in accordance with GAAP, MSGI is providing certain non-GAAP measures of financial performance. These non-GAAP measures include non-GAAP net loss and non-GAAP loss per share. MSGI's reference to these non-GAAP measures should be considered in addition to results prepared under current accounting standards, but are not a substitute for, nor superior to, GAAP results. These non-GAAP measures are included to enhance investors' overall understanding of MSGI's current financial performance. Specifically, the Company believes the non-GAAP measures provide useful information to management and to investors by isolating certain expenses, gains and losses that may not be indicative of its core operating results and business outlook. Reconciliation to GAAP measures included in this press release is as follows:
About MSGI Security Solutions