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
March 18, 2008
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Date of Report (Date of earliest event reported)
SOYO GROUP, INC.
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(Exact name of registrant as specified in its charter)
Nevada 333-42036 95-4502724
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(State or other jurisdiction (Commission File Number) (IRS Employer
of incorporation) Identification No.)
1420 South Vintage Avenue
Ontario, California 91761-3646
(Address of principal executive offices, including zip code)
(909) 292-2500
(Registrant's telephone number, including area code)
N/A
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(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:
[ ] Written communications pursuant to Rule 425 under the Securities Act
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act
Item 4.02 Non Reliance on Previously Issued Financial Statements or a Related
Audit or Completed Interim Review
On or about March 18, 2008, SOYO Group Inc. (the "Company") determined that
certain items on the audited consolidated financial statements of the Company
included in the Company's Form 10-K/A for the year ended December 31, 2006 filed
on August 7, 2007 should no longer be relied upon based on reasons as described
below.
Soyo Group, Inc. (the "Company") is filing this Amendment No. 2 to its Annual
Report on Form 10-K for the year ended December 31 2006 (the "December 31, 2006
10-K"), which was originally filed on March 30, 2007, and amended on August 7,
2007. This Amendment No. 2 is being filed to restate the Company's financial
statements for the year ended December 31 2006, which overstated total assets
and net income.
Nancy Chu, CFO, communicated to our independent auditors, Vasquez & Company LLP,
management and our Audit Committee that the Company inadvertently made an error
in preparing the financial statements. In 2006, the Company recognized a
deferred income tax asset in reflecting the net tax effect of temporary
differences between the carrying amounts of assets and liabilities for financial
reporting purposes and the amounts used for income tax purposes. The resulting
deferred tax asset was carried on the Company's balance sheet without a
valuation allowance. The Company now believes that the appropriate treatment of
the asset includes a valuation allowance to reduce the carrying amount to zero.
The additional income taxes payable have been recorded as an accrued liability.
The Company's CEO and CFO agreed to restate the financial statements for the
period and have filed the amended Form 10-K.
The Company has discussed the matters disclosed under Item 4.02 in this current
report on Form 8-K with Vasquez & Co., LLP, the Company's 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.
SOYO GROUP, INC.
(Registrant)
Date: March 18, 2008 By: /s/ MING CHOK
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Ming Chok, CEO
Date: March 18, 2008 By: /s/ NANCY CHU
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Nancy Chu, CFO