Trecora Resources reports accounting errors in Q2 and Q3 2016 10-Q forms
Trecora Resources' Audit Committee, following consultation with management and discussion with the company's independent registered public accounting firm, BKM Sowan Horan, concluded that there were errors in the accounting for its equity in earnings from its investment in AMAK in Q2 and Q3 2016. While the errors have an effect on EPS of less than 1c per share for 2016, they do have an impact on net income of Q2 and Q3 2016. As a result, the Q2 and Q3 Forms 10-Q should no longer be relied upon. The company will restate these quarters on or before the due date for the filing of its 2016 Form 10-K. The company has determined that it has a material weakness related to its controls surrounding the accounting for its investment in AMAK. Consequently, management will be unable to conclude that the company's internal controls over financial reporting are effective as of December 31, 2016. The final assessment of che Company's internal controls will be included in the 2016 Annual Report on Form 10-K, which also will include an adverse opinion from BKM Sowan Horan with respect to the company's internal controls over financial reporting. The company expects that the remediation of this material weakness will be completed prior to the filing of its 1Q17 Form 10-Q.