Home Theater Products International is voluntarily delisting its shares from the NASDAQ national market as it no longer meets the requirements for financial disclosure.
HTPI’s auditor resigned and withdrew his opinions of the accuracy of the company’s financial statements for the 1992-1995 fiscal years ended June 30. He now questions the accuracy of the information HTPI supplied to him and the integrity of its management. Additionally, in a published interview he alleged that HTPI substantially overstated its sales and that it probably had losses instead of the reported net profits.
In the wake of the allegations, a representative of Brookstreet Securities has been appointed chairman of an HTPI Shareholders Protection Committee, formed to represent non-management holders. The committee has retained legal counsel.
The financial upheaval comes just as HTPI was concluding a significant distribution agreement with Ingram Micro. HTPI said it was giving Ingram one-year non-exclusive worldwide rights to distribute selected Paramount-brand wireless speakers and headphones, and powered multimedia speakers.