From Earlier: ZAGG Discloses Audit Committee Concurring with Conclusion That Company Had Material Weakness in Internal Control

In the Annual Report of ZAGG Inc

on Form 10-K for the fiscal year ended December 31, 2010, management provided a report that concluded that our internal control over financial reporting (as defined in Rule 13a-15(f) under the Securities Exchange Act of 1934, as amended) was effective as of December 31, 2010. On January 16, 2012, management subsequently determined, in consultation with KPMG LLP , the Company's independent registered public accounting firm, that a material weakness in the Company's internal control over financial reporting existed as of December 31, 2010, resulting from a lack of a sufficient number of accounting professionals with the necessary experience and training during the period covered by the Annual Report. Management has determined that this weakness largely resulted from the Company's rapid growth during the year ended December 31, 2010. Management also determined that no changes to the Consolidated Financial Statements presented in the 2010 Form 10-K were required. On January 17, 2012, the Audit Committee of the Board of Directors, after consultation with management and KPMG, concurred with management's conclusion that the Company had a material weakness in the Company's internal control over financial reporting as of December 31, 2010, and determined that neither management's report nor KPMG's report regarding the effectiveness of the internal control over financial reporting contained in the Annual Report should be relied upon. As a result of this determination, the Company intends to file an amendment to the Annual Report to reflect a change in management's assessment of the disclosure controls and procedures as of December 31, 2010, and to restate Management's Report on Internal Control Over Financial Reporting. In addition, the amended Annual Report will include a restated Report of Independent Registered Public Accounting Firm regarding Internal Control Over Financial Reporting. The amended Annual Report will not include changes to the Company's Consolidated Financial Statements or the Report of Independent Registered Public Accounting Firm on the Consolidated Financial Statements dated March 24, 2011, included in the Annual Report. The Company also intends to file amendments to the Company's Quarterly Reports for the quarters ended March 31, June 30, and September 30, 2011, to reflect changes in management's assessment of our disclosure controls and procedures as of each of those periods. The amended Forms 10-Q will not include changes to our Condensed Consolidated Financial Statements included in the Forms 10-Q or any other financial disclosures. The Company reported a material weakness in internal control from a lack of a sufficient number of accounting professionals with the necessary experience and training to account for non-routine share-based compensation awards in its June 30, 2011 Form 10-Q. See the full filing