SINGAPORE - Security solutions firm Trek 2000 International on Monday (April 9) said that it has adopted adjustments and reclassifications proposed by its external auditor and has written off, under research and development expenses, US$950,000 in intangible assets deemed to have no further commercial value.
The company had initially reported for FY2017, research and development costs of US$3.06 million, but these were revised to US$2.11 million. With the write-off, the group's audited net profit for FY2017 is lower at US$5.2 million, compared to the initially reported US$6.2 million.
The auditors have also reclassified the net deficit of US$179,000 on the revaluation of freehold and leasehold land and buildings as "items that will not be reclassified subsequently to profit or loss" for fairer presentation, from "items that may be reclassified subsequently to profit or loss", the company said.
In March, the company's independent auditors said that they were unable to perform the necessary procedures to determine if the financial statements of Racer Group are in form. The company sold Racer Group in 2017, resulting in a net loss on disposal of US$1.3 million.
Trek 2000 shares were trading at S$0.235 as at 10.08am on Monday.