Heritage Global (HGBL) 8-K Non-Reliance on Previously Issued Financial Statements or a Related Audit Report or Completed Interim Review

Exhibit 99.1

Effect of the restatements on the consolidated statements of operations
(in thousands of dollars except per share amounts)
(per share information reported on a post 20:1 stock consolidation basis for all periods shown. Stock consolidation enacted in the fourth quarter of 2003)

	Three months			Three months			Three months			Three months			Three months			Three months
	ended			ended			ended			ended			ended			ended
	Dec. 31, 2002			March 31, 2003			June 30, 2003			Sept. 30, 2003			Dec. 31, 2003			March 31, 2004
Net income (loss) as currently reported on Form 10-K or 10-Q	$	(11,117	)	$	(14,895	)	$	(3,713	)	$	(3,257	)	$	(4,456	)	$	594
Correction of EITF 00-27 errors		(301	)		(902	)		(1,089	)		(1,337	)		(1,779	)		(1,801	)
Net loss as expected to be reported on revised Form 10-K or 10-Q	$	(11,418	)	$	(15,797	)	$	(4,802	)	$	(4,594	)	$	(6,235	)	$	(1,207	)
Net income (loss) per share as currently reported on Form 10-K or 10-Q	$	(1.92	)	$	(2.55	)	$	(0.64	)	$	(0.56	)	$	(0.44	)	$	0.03
Net loss per share as expected to be reported on revised Form 10-K or 10-Q	$	(1.96	)	$	(2.71	)	$	(0.82	)	$	(0.79	)	$	(0.59	)	$	(0.06	)

Effect of the restatements on the consolidated balance sheets
(in thousands of dollars)

	As at			As at			As at			As at			As at			As at
	Dec. 31, 2002			March 31, 2003			June 30, 2003			Sept. 30, 2003			Dec. 31, 2003			March 31, 2004
Notes payable to a related party:
As currently reported on Form 10-K or 10-Q	$	30,058		$	30,496		$	30,985		$	33,483		$	35,073		$	41,060
Correction of EITF 00-27 errors		(6,109	)		(5,364	)		(4,437	)		(3,265	)		(6,356	)		(4,834	)
As expected to be reported on revised Form 10-K or 10-Q	$	23,949		$	25,132		$	26,548		$	30,218		$	28,717		$	36,226
Additional paid-in capital:
As currently reported on Form 10-K or 10-Q	$	129,553		$	129,553		$	129,618		$	129,618		$	171,115		$	171,192
Correction of EITF 00-27 errors		6,410			6,567			6,729			6,894			11,764			12,043
As expected to be reported on revised Form 10-K or 10-Q	$	135,963		$	136,120		$	136,347		$	136,512		$	182,879		$	183,235
Accumulated deficit As currently reported on Form 10-K or 10-Q	$	(194,301	)	$	(209,196	)	$	(212,909	)	$	(216,166	)	$	(220,622	)	$	(220,028	)
Correction of EITF 00-27 errors		(301	)		(1,203	)		(2,292	)		(3,629	)		(5,408	)		(7,209	)
As expected to be reported on revised Form 10-K or 10-Q	$	(194,602	)	$	(210,399	)	$	(215,201	)	$	(219,795	)	$	(226,030	)	$	(227,237	)
Stockholders’ equity (deficit):
As currently reported on Form 10-K or 10-Q	$	(63,925	)	$	(78,820	)	$	(82,468	)	$	(85,725	)	$	(49,309	)	$	(47,292	)
Correction of EITF 00-27 errors		6,109			5,364			4,437			3,265			6,356			4,834
As expected to be reported on revised Form 10-K or 10-Q	$	(57,816	)	$	(73,456	)	$	(78,031	)	$	(82,460	)	$	(42,953	)	$	(42,458	)