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Pompano Beach, Florida, March 29, 2016 (GLOBE NEWSWIRE) -- On March 23, 2016, DS Healthcare Group, Inc., a Florida corporation (the “Company”) (NASDAQ: DSKX) filed a Current Report on Form 8-K with the SEC disclosing that the audit committee of the Board of Directors (the “Board”) concluded that the unaudited condensed consolidated financial statements of the Company for the two fiscal quarters ended June 30, 2015 and September 30, 2015 should no longer be relied upon because of certain errors in such financial statements.Based on their review, to the knowledge of the audit committee of the Board, the errors totaled approximately 0,000 in reduced revenues.These errors included approximately 0,000 and 0,000 of revenues recorded in the second quarter and third quarter of 2015, respectively, that did not meet revenue recognition criteria.
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In addition, 800,000 restricted shares of Company common stock were issued during the third quarter of 2015 as compensation under a contract with a purported foreign distributor which the Company believes lacks future economic value.
As a result, the Company has elected to expense such shares in the third quarter of 2015.
Another 350,000 shares of Company’s common stock were issued during the fourth quarter of 2015 to an investor relations firm for a one-year engagement which commenced in the third quarter of 2015.
To the knowledge of management, no services have been provided by this investor relations firm to date.
Accordingly, the entire amount of the equity award was recorded as an expense during the fourth quarter.