New financial statements for Command Center
Post Falls-based firm Command Center Inc. on Wednesday said it’s restating financial statements from 2010 and 2011 due to an accounting discrepancy.
The company, founded in 2003, provides temporary and on-demand staffing. The company trades on the over-the-counter stock market with the CCNI symbol.
A press release and filing with the Securities and Exchange Commission said company auditors concluded financial statements for 2010 and for three quarters of 2011 needed to be restated.
No date was given for when those restatements would be submitted.
Command Center filed an 8K form that gives the specifics of the discrepancy.
In brief, the identified problem comes from Command Center making workers’ compensation insurance payments to AIG Insurance through a third party company, AdvantEdge Insurance.
According to the filing, AdvantEdge received $716,000 from Command Center in 2008 to cover workers’ insurance payments, but the money never went to AIG.
A separate civil lawsuit filed on behalf of Command Center versus AdvantEdge seeks damages for the alleged withholding of money, said Ron Junck, general counsel for Command Center.
CEO and Chairman Glenn Welstad said, in a prepared release, that “the restatement does not reflect any trends in Command’s business or any current or prospective impact on the company’s results.”
The primary impact is to increase the company’s third quarter 2010 deficit by approximately $716,000, and result in a one-cent per share increase in reported earnings for third quarter of 2011, the company said.