I just read the link that ads posted and this is the best explanation of this whole situation out there, both as to why things have to be changed, and the possible net effect on things.

Please look at this link and specifically note the part that states you can have a profitable company, with a healthy share price, which in all liklihood has a floor established on the conversion of its warrants due to the assumption that the stock will not fall to previous low prices. I believe this fits our case to a tee and supports what I stated in my previous post - while there is no specific floor for coversion of our warrants, the liklihood of our warrants being repriced, and thereby causing more dilution, is very remote - the sp would have to drop to (my guess) around .10. We all ``know`` this will never happen. But GAAP says you never ``know`` anything that the future holds.

The link also explains that the SEC is just now cracking down on this stuff. So shouts of PTSC or even the auditors incompetence is pure BS.