Q1 2006 VCampus Earnings Conference Call - Final.

Original Source: FD (FAIR DISCLOSURE) WIRE

OPERATOR: Good day ladies and gentlemen, and welcome to the first quarter 2006 VCampus earnings conference call. [OPERATOR INSTRUCTIONS] This call contains forward-looking statements. The actual results might differ materially from those in the forward-looking statement. Additional information concerning factors that could cause actual results to materially differ from those in the forward-looking statement is contained in the Company's SEC filings, including its registration statements on Forms S-1 and S-3 and periodic reports under the Securities Exchange Act of 1934, copies of which are available upon request from the Company's investor relations department. I would now like to turn the call over to Mr. Nat Kannan, please proceed.

NAT KANNAN, CHAIRMAN, CEO, VCAMPUS: Thank you. Good day. Welcome to our quarterly conference call for the period ended March 31, 2006 for VCampus Corporation. We are pleased you can join us today and we look forward to the discussion. I'm Nat Kannan, CEO of VCampus joining you from Weston, Virginia today. With me today is also Chris Nelson our CFO. First, Chris will briefly highlight some of the financial topics from the first quarter. I will then talk about the business, especially focusing on the opportunities presented by our recently announced acquisition of Prosoft Learning. Chris can you take us through the numbers?

CHRIS NELSON, CFO, VCAMPUS: Yes, thank you, Nat. Hope everyone's seen the press release in the 10-Q as it's been out for a while and has a chance to take a look at the numbers. But since they've been out for a while, I'll note some brief highlights in the first quarter 2006 rather than go into more detailed discussion. After these highlights, I'll discuss our plans regarding our listing on NASDAQ.

Before I get to the highlights, I'd like to note a few noncash items, which we took charges on our financials for the first quarter of 2006. One is we took a $400,000 charge as an accrual for state -- Virginia state sales and use tax that we might have to pay. This covers a period from August of 1998 to March of 2006. It results from a difference in opinion that we had with the state tax commissioner. We currently are in negotiation with the tax commissioner to pay that payment over time and reduce the amount of the payment. But we did take a charge for the full amount in the event that we should have to pay that payment in full. …