NutraCea reports 2009 financial results, expects to file 2010
The Arizona-based company filed for protection under Chapter 11 of the US Bankruptcy Code on November 10, 2009, and exited Chapter 11 a year later on November 30, 2010.
NutraCea has also said it intends to file an annual report for 2010 by the end of Q1 2011, after which it will return to live quarterly conference calls regarding its financial results.
The company reported total revenues for 2009 of $33.2m, compared to total revenues of $35.2m for 2008. Its loss of $32.1m in 2009 compares to a $64.6m loss in 2008.
“While these results remain unsatisfactory, we significantly reduced our net loss in 2009,” the company said.
NutraCea added that it expects the 2010 annual and quarterly reports to show “a significant reduction in the net loss attributable to NutraCea in 2010 compared to 2009.”
The company had previously said that it found 2008 to be a challenging year. Whereas in the past it had looked to equity funds for additional liquidity, its financial position and the state of equity markets led it to file for bankruptcy to facilitate its restructuring.
‘Accounting irregularities’
On January 17, 2011, NutraCea reached a settlement with the SEC regarding alleged accounting irregularities in 2007 financial reports.
Four days earlier, the SEC charged NutraCea, three former executives, and two former accounting personnel with taking part in a fraudulent accounting scheme to misrepresent the company’s 2007 sales revenues. NutraCea said the case was settled without admitting or denying the charges, and no financial or regulatory penalties were assessed against the company.
The company said that initial investigations began in the fall of 2008 by the Audit Committee of NutraCea's Board of Directors when the company's internal staff reported accounting irregularities. This was then referred to the SEC and an informal investigation launched, which turned into a formal investigation in February 2009.
