CALGARY, Jan. 12 /CNW/ - As a result of preliminary work done in anticipation of the preparation of Genesis Land Development Corp.'s (the "Company" or "Genesis") fourth quarter financial statements, management has determined that certain revenues earned in the third quarter of 2008 should not have been recognized. In relation to one specific lot sales transaction for approximately $4.5 million that was recognized as revenue for the period, it has been deemed that the revenue should have been deferred until certain other criteria are met.
Management are currently working to prepare restated financial statements for the quarter ended September 30, 2008, and expect to release these shortly. The statements for the third quarter of 2008 as released by Genesis on November 14, 2008 should not be relied upon.
Management remains confident that revenue associated with this bulk lot sale will ultimately be recognized in future quarters.
Certain statements in this news release could constitute forward-looking statements. The Company's line of business involves risk, uncertainties and other factors which may cause actual results, performance or achievements of Genesis to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include the number of dwelling sites that Genesis will actually develop and sell and Genesis' ability to collect amounts owing from lot purchasers.