Ceatech’s CFO
resigns amid
mounting lossesThe Kauai shrimp producer's
auditor also quit prior to
the company announcing a loss
for the quarter of $737,419
Edward Foley, chief financial officer and executive vice president at Kauai shrimp producer Ceatech USA Inc., has resigned his positions.
The disclosure was made in a quarterly financial report filed last week with the Securities and Exchange Commission. Foley's resignation was effective Sept. 19.
Foley, who could not be reached for comment, received a salary of $112,500 and a bonus of $30,000 for the fiscal year ending Jan. 31, 2002. His financial compensation from the most recent fiscal year has not been filed yet with the SEC.
Last month, Ceatech announced in an SEC filing that its auditor, PricewaterhouseCoopers LLP had resigned effective July 28. Ceatech's filing said there were no disagreements with PWC on any matters concerning audits for the fiscal years ending Jan. 31, 2003, and Jan. 31, 2002. Both those audits included paragraphs by PWC expressing substantial doubt about Ceatech's ability to continue as a going concern. Such language is commonplace in the financial filings of companies that are losing money.
Ceatech said in its most recent filing that it has not hired another independent accountant and that the quarterly financial statement it filed with the SEC has not been reviewed by independent accountants.
Ceatech, which has lost more than $12 million since its inception in 1995, said in last week's filing that it lost $737,419 for its fiscal second quarter that ended July 31. The loss was similar to the $744,438 loss it reported in the year-ago period. Ceatech's revenues of $512,816 in the quarter were down 42.5 percent from $892,170 a year ago.
Ernest Dias, president and chief operating officer of Ceatech, certified the financial report. He could not be reached yesterday for comment.
