About EDGAR Online | Login
 
Enter your Email for a Free Trial:
The following is an excerpt from a 10KSB SEC Filing, filed by STANSBURY HOLDINGS CORP on 2/10/1999.
Next Section Next Section Previous Section Previous Section
STANSBURY HOLDINGS CORP - 10KSB - 19990210 - AUDITORS_OPINION

INDEPENDENT AUDITOR'S REPORT

Board of Directors
Stansbury Holdings Corporation

We have audited the accompanying balance sheets of Stansbury Holdings Corporation (a Utah corporation) as of June 30, 1998 and 1997 (as restated) and the related statements of operations, stockholders' equity, and cash flows for each of the two years in the period ended June 30, 1998. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatements. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Stansbury Holdings Corporation as of June 30, 1998 and 1997 (as restated) and the results of their operations and their cash flows for each of the two years in the period ended June 30, 1998 in conformity with generally accepted accounting principles.

During the fiscal year ending June 30, 1998, management determined there were significant errors in accounting for accrued interest. Management identified an overstatement of approximately $1,490,000 in accrued interest payable in the financial statements as of June 30, 1997. This correction of accounting errors is recognized as a prior period adjustment. The June 30, 1997 financial statements are restated to properly report the prior period adjustments. See also, Note 11 to the financial statements.

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 2 to the financial statements, the Company has incurred cumulative losses after adjustments of approximately $3,800,000 since April 27, 1985 (the effective date of the plan of reorganization under Chapter 11 of the bankruptcy Reform Act of 1978). As of June 30, 1998, the Company's current liabilities exceeded its current assets by $4,648,000. The foregoing factors raise substantial doubt about the Company's ability to continue

F-2

as a going concern. Management's plan in regard to these matters are discussed in Notes 2, 5 and 13. The financial statements do not include any adjustments relating to the recoverability and classification of asset carrying amounts or the amount and classification of liabilities that might result should the Company be unable to develop and operate the mineral property and continue as a going concern.

/s/ Sellers & Associates
------------------------

December 22, 1998
Ogden, Utah

F-3

BROKERAGE PARTNERS