HomeSeekers.com (Nasdaq: HMSK) was down 1 at 1 in early trading Monday, after the Reno, Nevada-based Internet real estate network restated results for the second and third quarters of the year ended June 30th, and said its auditors expressed doubt about its ability to stay in business.
While revenue for the year rose 224 percent to $11.1 million, the company said it restated second quarter revenue to $2.6 million from $2.7 million, and for the third quarter to $3.4 million from $4.3 million. The changes resulted in wider losses for both periods.
“Revenue recognition accounting for Internet companies is emerging and is receiving increased attention,” said chairman and chief executive officer Greg Costley. “We took a hard look at our revenue recognition policies, and took the steps we considered to be necessary to comply with the new requirements.”
Homeseekers’ auditors attached a statement to financial results for the year expressing substantial doubt the company will be able to continue as a going concern.