Restatement of Financials

USA Mobility’s Restatement of Financials On an annual basis, publicly traded companies are required to file certain reports with the Securities and Exchange Commission (SEC). Some of the included reports are Form 10-K, Form 10-Q, and Form 8-K. The filing of these forms allows companies to remain in compliance with regard to disclosure requirements set forth by the SEC. Form 10-K includes a comprehensive overview of a company’s financial position and is filed annually within 90 days of the end of the company’s fiscal year. Form 10-Q is filed quarterly by a company and Form 8-K contains current reports that disclose specific events. If a company is audited and weaknesses are found, restatements to these statements may be necessary. In the case of USA Mobility, auditors did identify some areas that warranted a restatement while conducting and audit in the first quarter of 2013 the company’s financial statements for the 2012 reporting year. USA Mobility’s Audit Committee determined through the audit performed that a material weakness in internal control over financial reporting and disclosure was identified within Amcom Software Incorporated that is owned and operated by USA Mobility. Amcom Software was acquired by USA Mobility on March 2, 2011. The auditors revealed Amcon’s procedures in place for revenue recognition were poorly designed and did not allow for proper internal controls to be utilized. Revenue was being recognized by the company during quarters when it should not have been recognized. Upon this finding, USA Mobility had to determine the correct timeframe to recognize revenue for its software segment. Prior to the audit, the revenue for software operations was being recognized by using the residual method and the company would recognize revenue for software licenses upon completion of services. The company deemed services complete when the product was available for use by the customer. In addition, the company offered services after installations