Dubli Unofficial

Dubli/Medianet Group's latest SEC filings not looking particularly good...

# Form 8K/A:
Filing Date: December 21, 2010

excerpts:

Non-Reliance on Previously Issued Financial Statements or a Related Audit Report or Completed Interim Review 


On December 16, 2010, the Company’s Chief Financial Officer and Board of Directors concluded that the previously issued financial statements contained in the Company’s Quarterly Reports on Form 10-Q for each of the first three quarters of the year ended September 30, 2010, and the 2009 financial statements of CG Holdings Limited and its Wholly Owned Subsidiaries as of September 30, 2009 and for year then ended and the related pro forma financial statements also contained in the Company’s Form 8-K/A filed with the Securities and Exchange Commission (the “SEC”) on February 4, 2010 should not be relied upon because of errors that require a restatement of such financial statements.

During the course of our year end close for the year ended September 30, 2010, the Company’s new CFO and new controller discovered the following errors:

Intercompany Eliminations
We determined that in the course of preparing consolidated financial statements certain intercompany eliminations were not made during each of the first three quarters of the year ended September 30, 2010 and for the fiscal year ended September 30, 2009. As a result, our previously issued financial statements for the periods identified above overstated both revenues and costs of goods sold and operating expenses by between 7% and 19%.With respect to these errors , we have determined that during the periods referred to above, we had insufficient personnel resources to perform review and monitoring controls within the accounting function. Except for potential local tax effects in certain countries, the restatement is not expected to result in any modification to our net income or shareholders’ equity for any of the periods presented.

Cutoffs
We determined that certain revenue and expense transactions for the quarter ended March 31, 2010 were erroneously recorded in quarter ended December 31, 2009. In this connection, we determined that certain supervisory and monitoring controls had not been performed for these periods which resulted in these accounting errors.

Account Errors
We determined that sales, deferred revenue and commissions were incorrectly recorded during each of the first three quarters of the year ended September 30, 2010 and for the fiscal year ended September 30, 2009. In this connection, we determined that certain supervisory and monitoring controls had not been performed for these periods, which resulted in these accounting errors.

Enrollment fees
We determined that revenue from the sale of our eBiz kits was erroneously recorded for each of the first three quarters of the year ended September 30, 2010 and for the fiscal year ended September 30, 2009. As a result, our previously issued financial statements for the periods identified above overstated revenues. The Company's non-refundable eBiz kits fee revenue was previously recognized when collected. Based on a review of Staff Accounting Bulletin (“SAB”) 104, the Company is revising its revenue recognition of non-refundable eBiz kits to recognize them on a straight-line basis over the term of the 12 month renewal period. In this connection, we determined that periods referred to above, we had insufficient personnel resources and technical accounting expertise within the accounting function to resolve non-routine or complex accounting matters.

Deferred Tax Liability
Taking into consideration the restatement and related adjustments described above, we will reassess our income tax provision in accordance with Financial Accounting Standards Statement No. 109 and accordingly, certain adjustments may be required to reflect the changes required as a result of the restatement to all affected periods.

Proposed Report Amendments
The Company intends to file with the SEC, amended Quarterly Reports on Form 10-Q /A as of December 31, 2009, March 31, 2010 and June 30, 2010 and for each of the three months then ended and an amended Form 8-K/A containing the consolidating balance sheet as of September 30, 2009 and the consolidating income statement for the year then ended and the related pro forma financial statements also contained in the Company’s Form 8-K/A to reflect the changes required as a result of the restatement. Management is still in the process of understanding and quantifying the full impact of these restatements and cannot, at this time, accurately estimate and describe such impact.

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# Form NT 10-K
Filing Date: December 30, 2010

excerpts:

NOTIFICATION OF LATE FILING


MediaNet Group Technologies, Inc. (the “Company”) has not been able to complete all of its review processes prior to the required filing date. In order to properly prepare a complete and accurate Form 10-K, the Company requires additional time in order to prepare and file its annual report on Form 10-K for the year ended September 30, 2010.


PART IV — OTHER INFORMATION
(2)
Have all other periodic reports required under Section 13 or 15(d) of the Securities Exchange Act of 1934 or Section 30 of the Investment Company Act of 1940 during the preceding 12 months or for such shorter period that the registrant was required to file such report(s) been filed ? If answer is no, identify report(s).


Yes o No x


(3)
Is it anticipated that any significant change in results of operations from the corresponding period for the last fiscal year will be reflected by the earnings statements to be included in the subject report or portion thereof ?


Yes x No o




As previously stated on Form 8-K, filed on December 16, 2010, as amended by Form 8-K/A filed on December 21, 2010, the Company anticipates restating its financial statements for each of the quarters for the year ended September 30, 2010 and for the fiscal year ended September 30, 2009. 
As a result of such anticipated restatements, among other potential changes the Company anticipates significant change in results of operations from the corresponding period for the last fiscal year.


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All SEC filings of MEDIANET GROUP TECHNOLOGIES INC available at:
www.sec.gov ==> MediaNet Group Technologies
.