UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
8-K
CURRENT
REPORT
Pursuant
to Section 13 or 15(d) of the
Securities
Exchange Act of 1934
Date of
Report (Date of Earliest Event Reported): January 27,
2011 (January 21, 2011)
US DATAWORKS,
INC.
(Exact
name of registrant as specified in its charter)
|
Nevada
|
001-15835
|
84-1290152
|
||
|
(State
or Other Jurisdiction of
Incorporation)
|
(Commission
File Number)
|
(I.R.S.
Employer
Identification
Number)
|
|
One
Sugar Creek Blvd., 5th
Floor
Sugar
Land, Texas
|
77478
|
|
|
(Address
of principal executive offices)
|
(Zip
Code)
|
(281) 504-8000
(Registrant’s
telephone number,
including
area code)
N/A
(Former
name or former address, if changed since last report.)
Check the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligations of the registrant under any of the following
provisions (see General Instruction A.2. below):
¨
Written communications pursuant to Rule 425 under the Securities Act (17
CFR 230.425)
¨
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
¨
Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
¨
Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240-13e-4(c))
-1-
|
Item 4.02.
|
Non-Reliance
on Previously Issued Financial Statements or a Related Audit Report or
Completed Internal Review
|
On
January 21, 2011, the Company’s Audit Committee concluded that the Company’s
previously filed financial statements for the Company’s fiscal year ended March
31, 2010 and for the Company’s fiscal quarters ended June 30, 2010 and September
30, 2010 could no longer be relied upon because of an error in such financial
statements related to the Company’s accounting for a software license sold
during the quarter ended March 31, 2010 (the “License”).
The
Company recognized all of the license fee revenue associated with the License in
March 2010 when the license agreement was executed and the software was provided
to the customer. In November 2010, the Company entered into a
separate service agreement with the customer. However, the original
accounting did not consider the impact of essential services which are common
for such software to meet the customer’s intended use. Therefore, the
Company has determined that the software license fee revenue should have been
recognized over the period the professional services are rendered.
To
correct this error, the Company will restate the affected financial statements
as contained in amendments to the Company’s Annual Report on Form 10-K for the
year ended March 31, 2010, the Company’s Quarterly Report on Form 10-Q for the
quarter ended June 30, 2010 and the Company’s Quarterly Report on Form 10-Q for
the quarter ended September 30, 2010, which the Company currently expects to
file with the Commission on or before February 14, 2011. The Company
currently expects that such restated financial statements will be comprised of
the following adjustments:
|
|
·
|
For
the year ended March 31, 2010, (i) revenue and retained earnings will be
decreased by $600,000 (the amount of the license fee), (ii) net loss will
be increased by $600,000, (iii) net loss per share will be increased by
$0.02 per share and (iv) deferred revenue will be increased by
$600,000.
|
|
|
·
|
For
the quarter ended June 30, 2010, (i) retained earnings will be decreased
by $600,000 and (ii) deferred revenue will be increased by
$600,000.
|
|
|
·
|
For
the quarter ended September 30, 2010, (i) retained earnings will be
decreased by $600,000 and (ii) deferred revenue will be increased by
$600,000.
|
The
Company currently expects to record the $600,000 license fee as an increase in
revenue, net income (loss) and retained earnings as follows: approximately
$100,000 of the license fee revenue is expected to be recognized in the quarter
ended December 31, 2010 with the remaining portion of the license fee revenue
expected to be recognized in future periods as the professional services are
rendered.
The
Company has informed Ham, Langston and Brezina LLP, the Company’s former
independent registered public accounting firm of the matter disclosed in this
filing. Additionally, the Company and the Audit Committee discussed
this matter with the Company’s current independent registered public accounting
firm.
-2-
SIGNATURE
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
Dated:
January 27, 2011
|
US
DATAWORKS, INC.
|
||
|
By:
|
/s/ Charles
E. Ramey
|
|
|
Charles
E. Ramey
|
||
|
Chief
Executive Officer
|
||
-3-