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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): December ___, 2004
Adams Golf, Inc.
(Exact Name of Registrant as Specified in Charter)
Delaware 000-24583 75-2320087
(State or Other Jurisdiction (Commission (IRS Employer
of Incorporation) File Number) Identification No.)
300 Delaware Avenue, Suite 572
Wilmington, Delaware 19801
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code: (302) 427-5892
Not applicable
(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 (see General Instruction A.2. below):
[ ] Written communications pursuant to Rule 425 under the
Securities Act (17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12(b) under the
Exchange Act (17 CFR 240.14a-12(b))
[ ] Pre-commencement communications pursuant to Rule 14d-2(b)
under the Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c)
under the Exchange Act (17 CFR 240.13e-4(c))
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Item 8.01. Other Events.
During the week of December 6, 2004, we uncovered evidence
suggesting that a former employee embezzled funds from us in the amount
of approximately $970,000. Upon making a preliminary determination of
impropriety, we engaged our audit committee, and filed a criminal
complaint. In addition, we involved our external auditors and our
outside counsel to confirm our preliminary determination of impropriety.
As a result of the investigation performed to date, we believe that we
have identified the extent of the fraudulent activity. Specifically, we
believe that the fraud was perpetrated by a single individual during the
period beginning approximately May 2001 and ending approximately
November 2004. Our investigation is not complete. We have notified our
insurance company of the loss under our crime insurance policy and
believe we have sufficient coverage to recoup our losses; however, the
insurance carrier is continuing its review of the matter.
We are currently working with the audit committee of our board of
directors and our external auditors to ensure appropriate accounting
treatment and to identify any potential impact on our historical
financial statements. We currently believe there will be no net income
(loss) change for any of the historical financial statements. To the
extent the Company recovers under any of its insurance policies, the
gain would be reflected in future financial statements.
We are continuing to review our internal controls over financial
reporting, both overall and in light of this development. As an initial
step to prevent future fraudulent activity, we have modified certain of
our internal controls including the process by which bad debt expense is
authorized and approved. We are evaluating further actions to improve
our internal controls as a result of this matter. However, there can be
no assurance that our controls and procedures will prevent future errors
or fraudulent activity.
SIGNATURE
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.
ADAMS GOLF, INC.
Date: December 30, 2004 By: /s/ ERIC LOGAN
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Eric Logan
Chief Financial Officer