AuditorJun 8, 2026, 05:41 PM
FDCTech Declares Non-Reliance on Past Financials; 2024 Assets Down $8.07M
AI Summary
FDCTech, Inc. announced that its Board of Directors, in consultation with its current auditor LAO Professionals, concluded that previously issued financial statements from 2024, 2025, and several interim periods should no longer be relied upon. This decision stems from errors identified during LAO's reaudit and comments from the SEC regarding the presentation of client funds. The restatements significantly impacted the 2024 financials, including an $8.07 million decrease in total assets and a reclassification of an $8.2 million subscription receivable.
Key Highlights
- FDCTech declared non-reliance on financial statements for 2024, 2025, and Q1-Q3 2025, Q1 2026.
- Errors identified during reaudit by LAO Professionals and SEC comments led to the non-reliance.
- Total assets as of December 31, 2024, decreased by $8,070,481 to $33,768,927.
- Stockholders' equity was impacted by an $8,200,000 subscription receivable reclassification to contra-equity.
- Net income attributable to shareholders for 2024 was restated to $247,544 from $80,027.
- Misclassification of $7,074,201 in client funds and related party cash credits were among the errors.
- Olayinka Oyebola & Co. was dismissed as the independent auditor on April 3, 2025.
Price Impact
More from FDCT