The Hain Celestial Group, Inc. announced that a group of independent directors established to review the company's past stock option practices has reported its findings to the board of directors. The company also announced that the board of directors had adopted each of the recommendations of these independent directors. In connection with the completion of the review, the company announced that it is restating its previously issued financial statements to correct errors related to accounting for stock-based compensation expense.
In its Form 10-K for the fiscal year ended June 30, 2007—to be filed today—the company is restating its consolidated balance sheet as of June 30, 2006, and the related consolidated statements of operations, stockholders' equity and cash flows for each of the fiscal years ended June 30, 2006 and 2005. This restatement resulted from the findings of an investigation that was undertaken by the independent directors of the company's historical stock option granting processes and related accounting. The 2007 Form 10-K also reflects the restatement of "Selected Financial Data" for the fiscal years ended June 30, 2006, 2005, 2004 and 2003.
A review of the company's historical equity granting process is available here.