SECURITIES
AND EXCHANGE COMMISSION
WASHINGTON,
D.C. 20549
FORM
8-K
CURRENT
REPORT
Pursuant
to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of
Report (Date of Earliest Event Reported): May 3, 2010
000-27763
(Commission
file number)
SITESTAR
CORPORATION
(Exact
name of registrant as specified in its charter)
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NEVADA
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88-0397234
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(State
or other jurisdiction of
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(I.R.S.
Employer Identification No.)
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incorporation
or organization)
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7109
Timberlake Road
Lynchburg,
VA 24502
(Address
of principal executive offices) (Zip Code)
(434)
239-4272
(Registrant's
telephone number, including area code)
NOT
APPLICABLE
(Former
name or former address, if changed since last report)
Check the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions (see General Instruction A.2. below):
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o
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Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
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o
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Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
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o
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Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
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Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
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Item 4.02
Non-Reliance on Previously Issued Financial Statements or a Related Audit or
Completed Interim Review
June 9,
2010,
On the
date hereof, Sitestar Corporation is filing an amendment to its Quarterly
reports for the quarters ended March 31, 2009, June 30, 2009, and September 30,
2009, to amend and restate the financial statements and other financial
information for the quarters then ended. The restatements adjust our accounting
for revenue recognition. The restatements affect both our cash flows and
liquidity, and the effect on our financial position at the ends of the
respective restated periods is material. There was no effect on the audited
financial statements for the year ended December 31, 2007 or any prior
periods.
In light
of the restatement, readers should not rely on our previously filed financial
statements and other financial information for the quarters ended March 31,
2009, June 30, 2009 and September 30 2009.
Background
In
completing the audit for December 31, 2009 Santora CPA Group determined that we
had improperly stated revenue. The Company is restating earnings to
reflect proper revenue recognition of processing charges and late fees for
customers cut off from internet service because the collectability of those
charges is not reasonably assured.
After
considering the facts, management recommended to the Board of Directors that
previously reported financial results be restated to reflect proper revenue
recognition of processing charges and late fees from January 1, 2008 forward.
The Board of Directors discussed and agreed with this
recommendation.
On May 3,
2010 Sitestar Corporation determined that revenue recognition of processing
charges and late fees should be restated in the financial statements and adopted
the recommendation of the Board of Directors. Sitestar also determined that
previously reported results should be restated and that the previously filed
financial statements and other financial information referred to above should
not be relied upon. The restatement resulted from a material weakness in
internal control over financial reporting, namely, that we did not have
adequately designed procedures to prevent the recording of revenue for which the
collectability was uncertain.
The Board
of Directors has discussed the matters disclosed in this current report on Form
8-K with Santora CPA Group, our independent registered public accounting
firm.
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the Registrant has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
Dated:
June 9, 2010
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SITESTAR
CORPORATION
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By:
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/s/ Daniel
Judd
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Name:
Daniel Judd
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Title:
CFO
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