-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Rnr6aplbRU40DWhXsMDafszBlUXJAy6O2EFZRAVtzg6GlHzQUpVzOmC/DdqslQ5u mvF2pTA6emmVfnjMwClY3A== 0000000000-05-042153.txt : 20060828 0000000000-05-042153.hdr.sgml : 20060828 20050815160404 ACCESSION NUMBER: 0000000000-05-042153 CONFORMED SUBMISSION TYPE: UPLOAD PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 20050815 FILED FOR: COMPANY DATA: COMPANY CONFORMED NAME: CAPACITIVE DEIONIZATION TECHNOLOGY SYSTEMS INC CENTRAL INDEX KEY: 0001098584 STANDARD INDUSTRIAL CLASSIFICATION: WATER SUPPLY [4941] IRS NUMBER: 860867960 STATE OF INCORPORATION: NV FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: UPLOAD BUSINESS ADDRESS: STREET 1: 13636 NEUTRON RD CITY: DALLAS STATE: TX ZIP: 752444410 BUSINESS PHONE: 9729341586 MAIL ADDRESS: STREET 1: 13636 NEUTRON RD CITY: DALLAS STATE: TX ZIP: 75244-4410 FORMER COMPANY: FORMER CONFORMED NAME: FARWEST GROUP INC DATE OF NAME CHANGE: 19991109 PUBLIC REFERENCE ACCESSION NUMBER: 0001077629-05-000038 LETTER 1 filename1.txt Mail Stop 3561 August 15, 2005 By Facsimile and U.S. Mail Mr. Phil Marshall Chief Financial Officer Capacitive Deionization Technology Systems, Inc. 13636 Neutron Road Dallas, TX 75244-4410 Re: Capacitive Deionization Technology Systems, Inc. Form 10-K for the year ended December 31, 2004 Filed April 8, 2005 File No. 0-28291 Dear Mr. Marshall: We reviewed your responses to our prior comments on the above referenced filings as set forth in your letter dated July 26, 2005. Our review resulted in the following accounting comments. Form 10-K for Fiscal Year Ended December 31, 2004 Balance Sheet, page 24 1. We note your response to comment 10 of our letter dated July 5, 2005. Please explain to us why you have classified the advance to a consultant as a note receivable. In this regard, you indicate that the note will be offset against future work performed by the consultant, so it appears that note will never be realized. It appears the more appropriate classification of the advance would be a prepaid expense. Please revise, or advise. Statement of Changes in Stockholders` Equity (Deficit), page 26 2. We note your response to comment 12 of our letter dated July 5, 2005. Help us understand why you recorded the impairment charge related to the note receivable to income as opposed to equity in your 2003, and 2002 financial statements. Since you originally recorded the note to equity it would appear that the subsequent accounting should follow the original recording of the transaction. See paragraph 8 of EITF Issue 02-1. Please revise, or advise. ``` ```````````````````````````````````````````````As appropriate, please respond to this comment within 10 business days or tell us when you will provide us with a response. Please provide us with a response letter that keys your response to our comment and provides any requested supplemental information. Please file your response letter on EDGAR as a correspondence file. If you have any questions regarding this comment, please direct them to Robert Babula, Staff Accountant, at (202) 551-3339 or, in his absence, to the undersigned at (202) 551-3841. Any other questions regarding disclosures issues may be directed to H. Christopher Owings, Assistant Director at (202) 551-3725. ` Sincerely, Michael Moran, Esq. Branch Chief ` ?? ?? ?? ?? Mr. Phil Marshall August 15, 2005 Page 2 -----END PRIVACY-ENHANCED MESSAGE-----