26
WINNERS ALL INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
YEARS ENDED JULY 31, 1995 AND 1994
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
WARRANTS AND OPTIONS
Warrants and options have been recorded at fair market value on the
date of issuance and expensed in the applicable period.
FOREIGN CURRENCY TRANSACTION
Through July 31, 1995, the Company has accounted for the activities
of its foreign subsidiary with the U.S. dollar as the functional
currency. Any exchange gains or losses during the period were
insignificant.
PER SHARE DATA
Per share data is calculated based on average number of shares
outstanding. Stock options and warrants are considered to be common
stock equivalents, but are excluded from earnings per share
computations because of immateriality or anti-dilution.
RESTATEMENTS
a) Recapitalization - The consolidated financial statements give
retroactive effect to the recapitalization of the par value on the
common stock (Note 3).
b) Stock Split - August 3, 1993, the Board of Directors declared a
1.2 for one stock split, effected in the form of a stock dividend,
to common stock shareholders of record on August 16, 1993, payable
September 23, 1993. In June 1994, the Board of Directors declared a
1 for 2 reverse stock split of common stock. Accordingly, the number
of common shares outstanding and per share data, for all periods,
have been restated to reflect stock splits. The par value of the
shares of common stock in connection with the stock splits has been
recorded to common stock and a like amount against additional
paid-in capital.
c) Restatement - The economic life of the license was changed from
five years to seventeen years which is the term of the license. The
consolidated financial statements for the year ended July 31, 1993
have been restated to give effect to the increased amortization
period, and amortization decreased by approximately $300,000 for the
year.
-26-
