Adams Golf has been fully reimbursed by its insurance company for funds embezzled by a former employee.
On December 30, 2004, ADGO field a report with the SEC that a former employee embezzled funds in the approximate amount of $970,000, which were materially expensed in the years the funds were embezzled. Adams Golf submitted a claim for reimbursement of the funds to its insurance carrier under a crime policy.
Adams filed another report with the SEC this week indicating that the insurance carrier has accepted the claim and has now fully reimbursed the company for $965,000, which represents the $970,000 claim less a $5,000 deductible. ADGO received the reimbursement funds on March 30, 2005 and will account for them during the first fiscal quarter of 2005.
