Katapult Holdings stock slides after delaying 2023 filing due to restatement

Statements of operations

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Katapult Holdings (NASDAQ:KPLT) stock slumped 6.1% in Wednesday afternoon trading, after the provider of e-commerce point-of-sale purchase options for nonprime consumers disclosed that its full-year 2023 financial statement filings will be delayed because it’s working on restating some previous periods’ statements.

During the preparation of its 2023 statements, Katapult’s board, along with two of its accounting firms, determined that it had materially misstated its revenue, sales tax payable, depreciation expense included in cost of revenue, and property held for lease.

Management found that it miscalculated the sales tax payable related to certain leases and miscalculated depreciation expenses included in costs of revenue for certain leases originated on or before Dec. 31, 2022.

The upshot is that the restatements are expected to reduce 2023 revenue by $2.3M and increase the depreciation expense included in the cost of revenue by $1.0M, the company said.

As of Dec. 31, 2022, the estimated impact of the restatements of the company’s consolidated balance sheet will be a cumulative increase in sales tax payable of $5.4M and a decrease in property held for lease of $1.0M. As of Dec.r 31, 2023, the estimated impact of the company’s consolidated balance sheet will be an increase in sales tax payable by $0.2M, it said.

“As a result of the foregoing, the company was unable to provide complete financial results for the year ended December 31, 2023 and file the Form 10- K by the required due date of April 1, 2024 without unreasonable effort and expense,” it said. Katapult (KPLT) expects to file the Form 10-K for 2023 no later than the 15th calendar day after the due date.

William Murphy

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