AuditorJun 23, 2026, 04:43 PM
FDCTech Declares Non-Reliance on 2024 Interim Financial Statements
AI Summary
FDCTech's Board of Directors, after consulting with management and its auditor LAO Professionals, concluded that previously issued unaudited condensed consolidated financial statements for the three, six, and nine months ended March 31, June 30, and September 30, 2024, respectively, should no longer be relied upon. This decision stems from various errors, including misclassifications and omissions, which also led to the restatement of the company's fiscal year 2024 financial statements. The company also identified material weaknesses in its internal control over financial reporting.
Key Highlights
- FDCTech's Board declared non-reliance on unaudited condensed consolidated financial statements for Q1, Q2, and Q3 2024.
- Errors include correction of general and administrative expense and misclassification of client funds.
- Other errors involve misclassification of related party cash credits and a subscription receivable.
- Intercompany elimination errors, omitted common stock, and foreign currency translation errors also contributed.
- Restated financial information for affected 2024 interim periods will be in amended 2025 Q1, Q2, and Q3 10-Q reports.
- Company identified material weaknesses in internal control over financial reporting.
- The determination followed an SEC comment letter regarding the restatement of fiscal year 2024 financials.
Price Impact
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