Servotronics Inc. Reports AMEX Notice
1110 Maple Street ¨ P.O. Box 300 ¨ Elma, New York 14059-0300 ¨ 716-655-5990 ¨ FAX 716-655-6012
September 1, 2005
SERVOTRONICS, INC. REPORTS AMEX NOTICE
Elma, NY — Servotronics, Inc. (Amex – SVT ) On August 16, 2005 the Company filed a Form 12b-25 Notification of Late Filing relative to its Quarterly Report on Form 10-QSB for the quarter ended June 30, 2005 with the Securities and Exchange Commission (SEC). A press release containing preliminary financial information was issued at that time. Subsequently, on August 22, 2005, the Company filed a 6/30/2005 Form 10-QSB with the SEC which indicated that the Company’s independent registered public accounting firm was unable to complete its required review of the Form 10-QSB for the reason described below. As a result of the above, the American Stock Exchange staff advised the Company that it is not in compliance with sections 134 and 1101 of the AMEX Company Guide which requires timely filing of a Company’s 10-QSB’s with the Securities and Exchange Commission. The American Stock Exchange staff invited the Company to submit a plan of compliance by September 9, 2005 . Such a plan, which requires AMEX approval, is to show the Company will regain its compliance with the AMEX listing requirements no later than October 6, 2005 .
The filed Form 12b-25 stated the reason for the filing delay. On August 22, 2005, the Company filed a Form 10-QSB and indicated that the Company’s independent registered public accounting firm was unable to complete a review of the interim unaudited financial statements included therein due to the Company’s ongoing investigation of certain checks issued from the Company’s payroll account which were not in conformity with the Company’s controls and procedures.
The Company is working with the accounting firm engaged by the Company’s Audit Committee to complete the investigation so as to enable the Company to obtain the necessary accountant’s review of the Form 10-QSB for the quarter ended June 30, 2005 as soon as reasonably practicable and to restore our compliance with the AMEX requirements.
Certain paragraphs of this release contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, such as those pertaining to the Company’s expectation of new business and success in its entry into new product programs. Forward-looking statements involve numerous risks and uncertainties. The Company derives a material portion of its revenue from contracts with agencies of the U.S. Government or their prime contractors. The Company’s business is performed under fixed price contracts and the following factors, among others, could cause actual results and future events to differ materially from those set forth or contemplated in the forward-looking statements: uncertainties in today’s global economy and global competition, difficulty in predicting defense appropriations, the vitality and ability of the commercial aviation industry to purchase new aircraft, the willingness and ability of the Company’s customers to fund long-term purchase programs, and market demand and acceptance both for the Company’s products and its customers’ products which incorporate Company-made components. The success of the Company also depends upon the trends that affect the national and international economy. Readers are cautioned not to place undue reliance on forward-looking statements, which reflect management’s analysis only as of the date hereof. The Company assumes no obligation to update forward-looking statements.
SERVOTRONICS, INC. (SVT) IS LISTED ON NYSE Amex