Genius Stock De-Listed2 Jan, 2009 By: Erik Gruenwedel
Genius Products, the fiscally challenged DVD distributor 70% owned by The Weinstein Co., Dec. 30 said its shares had been de-listed from the “over-the-counter” board (OCTBB) to the pink sheets, effective Dec. 24.
The de-listing is due to Genius’ inability to report third quarter fiscal 2008 results (ended Sept. 30) in a timely manner, a reality the Santa Monica, Calif.-based distributor disclosed in November when it formally requested a filing extension with the Securities and Exchange Commission.
Genius at that time said it would restate consolidated financial statements for six quarters and two fiscal-year periods.
Heretofore, Genius limited recognition of costs to its 30% stake, excluding possible cost overruns with The Weinstein’s stake, according to Anne Rakunas with financial consulting firm ICR, which handles Genius.
The restatements take into account that Genuis’ costs are not necessarily limited to its 30% stake, Rakunas said.
The restatements included the quarters ended Sept. 30, 2006; March 31, June 30 and Sept. 30, 2007; March 31 and June 30, 2008; and fiscal years ended Dec. 31, 2006 and 2007, related to financial accounting of costs associated with subsidiary DVD distributor Genius Products LLC.
“After 12 months of maintaining current reporting, we will have the opportunity to move back to the OTCBB,” said Trevor Drinkwater, president and CEO of Genius. “In addition, we will have the ability to move to the [American Stock Exchange] or Nasdaq if we meet the qualifications before the 12-month timeline.”
Genius, in the second quarter FY2008, reported a 33% decline in DVD revenue to $74.6 million and a loss of $11.7 million due to a 49% drop in box-office revenue for The Weinstein Co. releases The Great Debaters, Diary of the Dead and Cassandra's Dream.