BREAKING: Late-Filed SEC Form 10-Q For Q1 Now On EDGAR

Here is the pertinent bit, from page 14:

. . .During the second quarter of 2012, the Company identified an error relating to its calculation of basic and diluted loss per share from continuing operations in its previously issued financial statements. As described in Note Thirteen “Capital Stock and Series B Stock” of the “Notes to Consolidated Financial Statements” included in our Annual Report filed on Form 10-K/A for the year ended December 31, 2011, the Company has paid periodic dividends on the Series B Stock and in 2011 repurchased certain shares of Series B Stock. Although the Company accounted for the dividends and repurchase in its consolidated financial statements, it did not deduct the dividends or in 2011, the amounts paid in excess of liquidation value in connection with the repurchase of certain shares of Series B Stock, when calculating basic and diluted loss per share from continuing operations of common stock. To correct this error, the Company has restated its previously issued Consolidated Statements of Operations as described in Note Twenty-Two “Restatement —Basic and Diluted Loss Per Share from Continuing Operations” of the “Notes to Consolidated Financial Statements” included in our Annual Report filed on Form 10-K/A for the year ended December 31, 2011. In accordance with Accounting Standards Codification 260, “Earnings Per Share”, the restatement deducts from such amounts dividends paid on the Series B Stock and the amounts paid in excess of liquidation value in connection with the repurchase of certain shares of Series B Stock.

The change in presentation had no effect on any other amounts or financial statement line items. . . .

So, the error added two cents of GAAP continuing operations loss per share to Q1 2011, pushing the loss to $0.36 per share. Here in Q1 2012, the loss was $0.22.

Before you jump for joy, here, though -- recall that CEO Conway is now calling for a pause in sales momentum in Q2 2012 -- so, I'd expect the continuing operations GAAP loss per share to widen appreciably from the $0.22 posted for Q1 2012.

In addition, as the upper right graphic indicates, note that the error "buried" (or hid from view) $0.55 of GAAP Losses Per Share from Continuing Operations, for the Year 2011, while Mattersight transformed from old eLoyalty -- emerging from its would-be chrysalis (but by appearances only -- it seems). No, it is still a caterpillar -- not a butterfly, at all.

More on that later. let's see where the stock opens on the NASDAQ OTC tomorrow. If it falls, expect lawsuits, as many many people bought in the $9-plus per share range, and it is (without any additional declines), now off 12.5 percent from a nine-buck handle. Maybe more, after tomorrow.

Ugly. Ugly. Be careful out there.