The financial report for the third quarter of LifeWave Hi-Tech Medical Devices Ltd. (TASE:LIFE) has a rare discrepancy: a recurring error in the numbers in the profit and loss statement and the board of directors' report. The discrepancies range from NIS 86,000 in revenue (a difference of 18%) to NIS 324,000 for the net loss (a difference of 30%). The discrepancies were made in both the columns for the third quarter and for January-September.
A review by "Globes" indicates that the errors were not caused by a mistake in one number that led to derived errors, but that numerous mistakes were made.
The profit and loss statement in the financial report is the binding document, because it is audited. LifeWave's auditor is Kost, Forer, Gabbay and Kaiserer - Ernst & Young (Israel). The auditors do not audit the board of directors' report.
Most of the numbers appearing in the board of directors' report are higher than the figures appearing in the profit and loss statement. This was also true for R&D and administrative expenses.
In a notice to the TASE today, LifeWave listed 22 mistakes in its financial report.
In a separate notice to the TASE today, LifeWave announced the appointment of Prof. Elia Ricci to its clinical advisory board. He is a expert in surgery on chronic wounds in Italy and the world. The company also announced a new distribution contract in Italy.
The revised financial report has not hurt LifeWave's share: it rose 28% on Sunday, 23.6% on Monday, and 13% by midday today. The company has a market cap of over NIS 200 million
Published by Globes [online], Israel business news - www.globes-online.com - on December 4, 2007
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