American Traditional Voyages (AMCV) misled buyers by submitting an inaccurate quarterly report for its first quarter of 1999, in accordance with the Securities and Trade Fee (SEC). AMCV improperly capitalized promoting prices, as a substitute of expensing these prices because it did in earlier quarters, which “considerably improved reported outcomes,” the SEC stated. AMCV understated its web loss for the interval by 29 p.c, and understated its SG&A bills due to the wrong capitalization and deferral to later quarters of sure promoting prices. The SEC asserted that AMCV did not disclose its altered accounting therapy in its 10-Q.
As a part of the SEC findings, AMCV has consented to stop and desist from committing violations of the SEC Act. No high-quality was imposed, and AMCV didn’t admit or deny the SEC findings.
AMCV’s shares hit at an all-time low of $2.70 on June 27, a drop of 88 p.c from their 52-week excessive of $21.81. At press time (June 28), AMCV was buying and selling at $3.04.
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