SAExploration Files Restated Financial Reports
As SAE previously disclosed, a Special Committee of the Board of Directors was established to oversee an internal investigation with respect to certain accounting matters; those matters are the subject of ongoing
SAE is an international oilfield services company offering a full range of vertically-integrated seismic data acquisition, data processing and interpretation, and logistical support services throughout
The information in SAE’s website is not, and shall not be deemed to be, a part of this press release or incorporated in filings SAE makes with the
Forward Looking Statements
Except for statements of historical fact, the matters discussed herein are “forward-looking statements” within the meaning of the applicable U.S. federal securities laws. The words “may,” “possible,” “estimates”, “expects,” “believes” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Forward-looking statements, including statements regarding the possible impact of the matters summarized in this press release, may or may not be realized, and differences between estimated results and those actually realized may be material.
Factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, risks relating to known and unknown uncertainties, including:
- the impact of the restatement of SAE’s previously issued consolidated financial statements;
- the identified material weaknesses in SAE’s internal control over financial reporting and SAE’s ability to remediate those material weaknesses;
- the outcome of the investigations by the
SEC, the Department of Justice(“DOJ”) and the Alaska Department of Revenue(the “DOR”), which is investigating SAE’s treatment of Alaskan Seismic Ventures, LLCas a variable interest entity and related Alaskatax credit certificates, which could include sanctions or other actions against SAE and its officers and directors, civil lawsuits, and penalties;
- the outcome of SAE’s internal investigation into the matters summarized in the Annual Report on Form 10-K/A for the year ended
December 31, 2018;
- the possible impact on payments received from the
State of Alaskaregarding tax credits;
- risks related to a possible delisting from the
Nasdaq Capital Market;
- the availability of liquidity and capital resources, including SAE’s need to obtain additional working capital for upfront expenditures for upcoming projects, and the potential impact this has on SAE’s business and competitiveness;
- costs and outcomes of pending and future litigation;
- the time and expense required to respond to the
SEC, DOJ and DOR investigations and for SAE to complete the restatement and its internal investigation, which expenses have been and are likely to continue to be material and are likely to have a material adverse impact on SAE’s cash balance, cash flow and liquidity;
- delays, reductions or cancellations of project awards and SAE’s ability to realize revenue projected in its backlog; and
- other risks described more fully in SAE’s filings with the
SECthat relate to matters not covered in this press release.
Each of these risks, and the known and unknown consequences of these risks, could have a material negative impact on SAE, its business and prospects. As of the date of this press release, SAE cannot make any assurances regarding the impact or outcome of these risks. Forward-looking statements reflect the views of SAE as of the date hereof. SAE does not undertake to revise these statements to reflect subsequent developments, other than in compliance with U.S. federal securities laws and SAE’s determination that any such revised disclosure is necessary or advisable to do.
Chief Executive Officer and President
Source: SAExploration Holdings, Inc.