Apologies for not posting sooner as I have been traveling - IMO what we are witnessing regards Cardiogenics' amendment of previously filed 10K is KPMG, as the new auditor, is applying a less stringent financial standard than the interpretatiion used by Cohen. Note the language I posted previously -

The financial statements for the year ended October 31, 2011, will be restated to reflect the issuance in the year of warrants which were granted on a fully vested nonforfeitable basis as an expense of $1.5 million for the year and a resultant write off of the prepaid asset set up which relates to these warrants. In addition, the recording of certain tax related income and expenses, netting to an approximate income of $40,000 will also be reflected.

Apparently KPMG chooses to not recognize the warrants issued to vendors as "fully vested" until the services rendered are complete, while Cohen took a more cautious stand by recognizing the warrants as fully vested upon issuance by Cardiogenics.

Additionally, KPMG is going to treat certain tax related income and expenses differently than Cohen which will result in approximately $40,000 of additional income being reported for the company.

Both of these events are supportive of the Company's finances not negative.

Thanks again Dog for posts that prompt me to access the knowledge of specialists (read as a CFO and a VP of Finance of publicly traded companies) to assure myself that Cardiogenics is not just another "flim-flam" venture designed to rip off less than diligent investors.

As an observation, appears that after only a few posts you have alienated the few individuals that post on this board. IMO you should think about why that has happened - maybe the problem is not your view of Cardiogenics but rather ---!

Ante