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Adaptive Ad Systems Provides Correction Regarding Number of Profitable Quarters The Company Recorded Profits in 22 of the Past 24 Quarters
Adaptive Ad Systems Provides Correction Regarding Number of Profitable Quarters The Company Recorded Profits in 22 of the Past 24 Quarters.
About this update from Adaptive Ad Systems, Inc.
[{"type":"text","content":"VANCOUVER, WA / ACCESSWIRE / November 19, 2020 / Adaptive Ad Systems, Inc. (OTC:AATV), today issued a correction regarding references to the number of profitable quarters "in a row" for 24 quarters. Adaptive and its subsidiary companies provide Dynamic Digital Ad Insertion (DDAI) via its streaming media hardware and proprietary processing software for all U.S. cable TV markets and High Speed Fixed Wireless Internet Service (WISP) via a network of Hybrid Access Points and Micro POPs.In its press release of November 19, as well as some releases since May of this year, the Company has stated the number of profitable quarters "in a row," varying with each additional quarter. The number of profitable quarters is actually 22 instead of 24, as reported. While quarterly financial reports always identify results of the quarter being reported, that is not the case of annual reports which only report results for the entire year, without singling out the fourth quarter. It has come to management's attention that there were two instances of losses in the fourth quarter, which does not change the financial numbers reported, but does affect phraseology of press releases.As far back as in the year 2015, the Company experienced a fourth quarter loss of $20,793. Nevertheless, for that year, the Company generated gross revenue of 2,591,812 and net income before taxes of $140,098. Within the results for the entire year 2019, the Company experienced a loss of $197,784 during the fourth quarter. For that year, the Company generated gross revenue of $4,377,317 and net income before taxes of $255,107.Because of the foregoing, references outside of the financial statements (which were reported correctly) using phrasing for the number of profitable quarters "in a row" is not correct. The correct phraseology would be, using this press release as an example, "The Company has been profitable 22 of the last 24 quarters."While in some analysts' opinion this non-financial statement correction may not be material to overall operations of the Company, management deems such corrections important to the Company's transparency with its shareholders and prospective shareholders. Since responsible correctness of our reporting is of crucial importance to the Company, management has reviewed a break-out of all fourth ...