American International Industries (AMIN) CORRESP Correspondence with SEC

(18) Restatements

The 2004 and 2003 statements of operations and statements of cash flows have been restated to reclassify the net effect of the sale of real estate to a separate line item "gain on the sale of real estate acquired for resale", to reclassify the net change in real estate acquired for resale from operating activities to investing activities and recognize the effect of the discount on notes receivable on the statement of cash flows as follows:

		2004				2003
		As Previously Reported		As Restated		As Previously Reported		As Restated
Years ended December 31:
Statements of Operations
Revenues	$	21,440,342	$	16,687,426	$	7,928,943	$	7,842,943
Cost of sales		15,565,390		12,628,344		7,385,482		7,285,482
Total operating expenses		20,362,655		17,425,609		8,996,000		8,896,000
Operating income (loss)		1,077,687		(738,183)		(1,067,057)		(1,053,057)
Gain (loss) on sale of real estate		-		1,815,870		-		(14,000)
Total other income (expenses)		703,842		2,519,712		128,639		114,639
Statements of Cash Flows
Net cash provided by (used in) operating activities		(1,055,899)		(1,438,744)		618,334		(723,300)
Net cash provided by (used in) investing activities		4,902,090		6,209,918		(1,364,149)		(22,515)
Net cash provided by (used in) financing activities		289,449		(635,534)		780,400		780,400