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EPIXTAR, Formerly Global Asset
Holdings, Inc., Annouces Name Change
Tuesday, January 7, 2003 - 5:58 pm ET
MIAMI - (BUSINESS WIRE) - Jan. 7, 2003 - EPIXTAR CORP. (OTCBB:EPXR)
- formally Global Assets Holding, Inc. ("GAHI")
announces a change in accounting policy of its INTERNET programs.
EPIXTAR CORP. announced today a change in its accounting
policies pursuant to which it will expense all telemarketing
and fulfillment costs for INTERNET programs marketed by it
immediately as incurred. Previously these costs were expensed
forty-five days after they were incurred in order to coincide
with the first billing to the customer obtained through a
telemarketer. Therefore, these costs were always deferred
for a 45 day period. The immediate impact of the change is
that these costs incurred after mid-November 2002 will be
expensed in the year 2002 instead of being deferred to reduce
income in future periods. Therefore, any profit for 2002 will
be reduced or loss increased.
The change has no effect on revenue recognition or cash flow
and will not otherwise change operations.
The Company, for the last two months, has considered various
treatments of expenses and revenues and initially believed
its prior policies reflected the matching of revenue and expense.
It, in fact, was contemplating other changes to write off
expenses over a longer period to better match revenues and
expenses. However, after extensive review and discussions
the Company elected to adopt the more conservative policy
described above. The Company may consider restating prior
financial statements.
The policies adopted may not be appropriate for all programs
marketed by the Company.
Safe Harbor Statement
This release contains statements about expected future events
and financial results that are forward looking. These statements
are based on our estimates and assumptions and are subject
to risks and uncertainties. Actual results could be affected
by a downturn in the economy, new competitive products, slower
rate of growth in member base, higher than anticipated cancellations,
unforeseen expenses, or technical failure related to self
generating web site development or inability to scale server
capacity to meet demand. Forward looking statements include
the information concerning our possible or assumed future
results of operations. Forward looking statements also include
those preceded or followed by the words: "anticipates,"
"believes," "estimates," "hopes"
or similar expressions. For those statements, we claim the
protection of the safe harbor for forward looking statements
contained in the Private Securities Litigation Reform Act
of 1995.
Contact
EPIXTAR CORP., Miami
Martin Miller or Irving Greenman
305/503-8600
Source
EPIXTAR CORP.
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