Response Biomedical Corp. Announces Restatement Of Financial Statements

Response Biomedical Corp. announced that, as a result of an ongoing internal review of prior transactions and previous financial disclosure and following consultation with its external auditors, it has determined that it is appropriate to re-state and re-file audited financial statements for the year ended December 31, 2010, and unaudited financial statements for the first two quarters of 2011. Response has determined that a total of approximately $500,000 was improperly recognized as revenue in the fourth quarter of 2010. These amounts related to a shipment of products to a distributor which occurred in December, 2010. However, the distributor’s obligation to pay for such products was contingent upon the satisfaction of one or more conditions that had not been achieved as of December 31, 2010. As a result, Response has determined that it was inappropriate to recognize the associated revenue in 2010. Accordingly, Response will re-state its audited 2010 financial statements, as well as its unaudited first and second quarter statements of 2011,to exclude those amounts. Response has determined that approximately $70,000 in sales of RAMP 200 cardiovascular products to Roche recorded in the second quarter of 2011 subsequent to receipt of a letter from the FDA dated May 27, 2011, should not have been recorded. These products should not have been shipped as their shipment violated the FDA’s instructions in the May letter