Enova Systems Inc Regulatory News (ENVS)

6 Dec 2006 07:02

Enova Systems, Inc.06 December 2006 Enova Systems - Notice Regarding 8-K/A Dated 22 November 2006 TORRANCE, CA, 06 December 2006 - Enova Systems (AMEX: ENA and AIM: ENV and ENVS)- Notice Regarding 8-K Dated 22 November 2006. On November 22, 2006 Enova Systems, Inc. (the "Company") filed a Current Reporton Form 8-K disclosing that it had been notified by its auditors, Windes &McClaughry Accountancy Corporation ("Windes") that the financial statementscontained in the Company's Form 10-Q for the quarter ended September 30, 2006filed November 13, 2006 should no longer be relied upon. The purpose of this amendment, consistent with the disclosure in the initialForm 8-K and in accordance with Securities & Exchange Commission rules, is todisclose the response letter Windes provided to the Company on Friday December1, 2006. The response letter is filed as an exhibit to this Form 8-K amendment. The letter notes that Windes does not agree with some of the statements madein the initial Form 8-K. In particular, the letter conveys that Windes notifiedthe Company on November 17, 2006 that the Company's financial statements couldnot be relied upon. The Company has continued to discuss this matter with Windes and will continueto work actively to resolve this matter as quickly as possible. Exhibit - Letter from Windes & McClaughry Accountancy Corporation dated December1, 2006 Windes & McClaughry Accountancy Corporation December 1, 2006 United States Securities and Exchange Commission Washington D.C. 20549 Re: Enova Systems, Inc. Form 8-K Filed November 29, 2006 Dear Commissioners: In accordance with Item 4.02(c)(2) of Form 8-K, Windes & McClaughry herebyprovides Enova Systems, Inc. with its response to the representations in Form8-K filed on November 29, 2006 and provided to Windes & McClaughry on said date.Windes & McClaughry does not agree with some of the statements made in the Form8-K as set forth below: On November 13, 2006, Windes & McClaughry notified Enova Systems, Inc. that theForm 10-Q for the quarter ended September 30, 2006 ("Form 10-Q") had been filedwithout Windes & McClaughry's consent. The Form 8-K otherwise accuratelydescribes discussions between Enova Systems, Inc.'s management and Windes &McClaughry regarding completing our procedures and obtaining the remainingdocumentation. On November 17, 2006, Windes & McClaughry representatives informed EnovaSystems, Inc.'s audit committee, that Enova Systems, Inc. had filed its Form10-Q without Windes & McClaughry's authorization, that the financial statementsfor the quarter ended September 30, 2006 could not be relied upon, and thatmanagement needed to take action to prevent future reliance on said filings,including filing a Form 8-K with the Securities and Exchange Commission statingthe facts related to the filing and non-consent. Windes & McClaughryrepresentatives also explained to the audit committee the potential consequencesof not taking said action, as well as other matters. On November 22, 2006, following continued discussions between Windes &McClaughry and Enova Systems, Inc. representatives, between the period November17 and 22, 2006, Windes & McClaughry wrote to Enova Systems, Inc.'s management,again notifying management of the obligation to file the Form 8-K and set fortha deadline for completion of the same as well as a statement of potentialconsequences that would ensue in the event the Form 8-K was not filed. Sincerely, /S/ WINDES & McCLAUGHRY About Enova Systems, Inc. Enova Systems is a leading supplier of efficient, environmentally friendlydigital power components and systems products. The Company's core competenciesare focused on the development and commercialization of power management andconversion systems for mobile and stationary applications. Enova applies unique'enabling technologies' in the areas of alternative energy propulsion systemsfor light and heavy-duty vehicles as well as power conditioning and managementsystems for distributed generation systems. The Company develops, designs andproduces drive systems and related components for electric, hybrid-electric, andfuel cell powered vehicles. For further information, contact Enova Systemsdirectly, or visit its Web site at http://www.enovasystems.com. This news release contains forward-looking statements relating to Enova Systemsand its products that are intended to be covered by the safe harbor for forward-looking statements provided by the Private Securities Litigation Reform Act of1995. Forward-looking statements are statements that are not historical facts.These statements can be identified by the use of forward-looking terminologysuch as "believe," "expect," "may," "will," "should, "could," "project,""plan,'' "seek," "intend,'' or "anticipate'' or the negative thereof orcomparable terminology and statements about industry trends and Enova's futureperformance, operations and products. These forward-looking statements aresubject to and qualified by certain risks and uncertainties. These and otherrisks and uncertainties are detailed from time to time in Enova Systems'periodic filings with the Securities and Exchange Commission, including but notlimited to Enova's annual report on Form 10-K for the year ended December 31,2005. This forward-looking information should be considered only in connectionwith the aforementioned risk factors. Enova assumes no obligation to update suchforward-looking statements. ENOVA SYSTEMS, Inc. 19850 South Magellan DriveTorrance, CA 90502310-527-2800Contact: Mike Staran, VP of Marketing/Investor Relations This information is provided by RNS The company news service from the London Stock Exchange