22 Apr Tomo accounting error leads to restated financials
MADISON – TomoTherapy Inc. said it will restate its financial statements for 2008, noting that its previous statements contained errors.
The firm, which makes a radiaton system for treating cancer, said it found income tax accounting mistakes in previously released 2008 statmements. These errors could overstate the valuation allowance, the company explained. As a result, Tomo Therapy is investigating the errors and their cause, and will amend it’s 10-K form.
Tomo Therpay also said it believes a material weakness in its internal control over financial reporting existed at the end of 2008. The company is evaluating procedures surrounding its tax accounting matters and said it will fix the errors.
This news comes as the public company prepares for its May 1 shareholder’s meeting. Earlier this month, Tomo Therapy said it has settled a dispute with upset shareowner Avalon Portflio Group Inc. which placed Avalon’s protfolio manager Jonathan McCloskey on the company’s board of directors effective April 15.
California-based Avalon, which owns more than 4 percent of the company’s shares, has been leaning on Tomo Therapy to make major business changes, and had put together its own slate of four candiates to join the board of directors. With the settlement, Avalon witdrew the nominees.