Schwazze Provides Update on Delayed Filings
Schwazze (OTC: SHWZ) announced that its financial statements for fiscal years ended December 31, 2023, and quarterly reports for March 31, June 30, and September 30, 2023, will require restatement due to identified accounting adjustments in technical areas. The Audit Committee made this determination on November 29, 2024, following discussions with Baker Tilly and company management.
The company stated that previously issued reports, press releases, earnings releases, investor presentations, and other financial communications related to these periods should no longer be relied upon. However, Schwazze does not expect these corrections to negatively impact its revenue, adjusted EBITDA, cash from operations, or cash position materially.
Schwazze (OTC: SHWZ) ha annunciato che i suoi bilanci per gli anni fiscali conclusi il 31 dicembre 2023 e i report trimestrali del 31 marzo, 30 giugno e 30 settembre 2023 richiederanno una rielaborazione a causa di aggiustamenti contabili identificati in aree tecniche. Il Comitato di Audit ha preso questa determinazione il 29 novembre 2024, a seguito di discussioni con Baker Tilly e il management dell'azienda.
L'azienda ha dichiarato che i rapporti precedentemente emessi, comunicati stampa, comunicati sugli utili, presentazioni per gli investitori e altre comunicazioni finanziarie relative a questi periodi non devono più essere considerati attendibili. Tuttavia, Schwazze non si aspetta che queste correzioni influenzino negativamente i suoi ricavi, l'EBITDA rettificato, il cash flow operativo o la posizione di cassa in modo sostanziale.
Schwazze (OTC: SHWZ) anunció que sus estados financieros para los años fiscales finalizados el 31 de diciembre de 2023 y los informes trimestrales para el 31 de marzo, 30 de junio y 30 de septiembre de 2023 requerirán una rectificación debido a ajustes contables identificados en áreas técnicas. El Comité de Auditoría tomó esta determinación el 29 de noviembre de 2024, tras discusiones con Baker Tilly y la gerencia de la empresa.
La empresa declaró que los informes emitidos anteriormente, comunicados de prensa, comunicados de ganancias, presentaciones para inversores y otras comunicaciones financieras relacionadas con estos períodos no deben ser considerados como confiables. Sin embargo, Schwazze no espera que estas correcciones impacten negativamente en sus ingresos, EBITDA ajustado, flujo de efectivo de operaciones o posición de efectivo de manera significativa.
Schwazze (OTC: SHWZ)는 2023년 12월 31일로 종료된 회계연도의 재무제표 및 2023년 3월 31일, 6월 30일, 9월 30일로 종료된 분기 보고서가 기술적 분야에서 확인된 회계 조정으로 인해 수정되어야 함을 발표했습니다. 감사 위원회는 2024년 11월 29일, 베이커 틸리 및 회사 경영진과의 논의 후 이러한 결정을 내렸습니다.
회사는 이전에 발행된 보고서, 보도 자료, 수익 공지, 투자자 프레젠테이션 및 이러한 기간과 관련된 기타 재무 커뮤니케이션은 더 이상 신뢰할 수 없다고 밝혔습니다. 그러나 Schwazze는 이러한 수정이 매출, 조정된 EBITDA, 운영 현금 흐름 또는 현금 위치에 실질적으로 부정적인 영향을 미칠 것으로 예상하지 않습니다.
Schwazze (OTC: SHWZ) a annoncé que ses états financiers pour les exercices fiscaux clos le 31 décembre 2023 et les rapports trimestriels pour le 31 mars, le 30 juin et le 30 septembre 2023 devront être retraités en raison d'ajustements comptables identifiés dans des domaines techniques. Le Comité d'Audit a pris cette décision le 29 novembre 2024, après discussions avec Baker Tilly et la direction de l'entreprise.
L'entreprise a déclaré que les rapports précédemment publiés, communiqués de presse, annonces de résultats, présentations aux investisseurs et autres communications financières relatives à ces périodes ne doivent plus être considérés comme fiables. Cependant, Schwazze ne s'attend pas à ce que ces corrections aient un impact négatif significatif sur ses revenus, l'EBITDA ajusté, le flux de trésorerie d'exploitation ou la position de liquidités.
Schwazze (OTC: SHWZ) gab bekannt, dass die Finanzberichte für die zum 31. Dezember 2023 endenden Geschäftsjahre sowie die Quartalsberichte zum 31. März, 30. Juni und 30. September 2023 aufgrund identifizierter buchhalterischer Anpassungen in technischen Bereichen eine Neufassung erfordern werden. Der Prüfungsausschuss traf diese Entscheidung am 29. November 2024 nach Gesprächen mit Baker Tilly und dem Unternehmensmanagement.
Das Unternehmen erklärte, dass die zuvor veröffentlichten Berichte, Pressemitteilungen, Gewinnveröffentlichungen, Präsentationen für Investoren und andere finanzielle Mitteilungen, die sich auf diese Zeiträume beziehen, nicht länger als zuverlässig angesehen werden sollten. Dennoch erwartet Schwazze nicht, dass diese Korrekturen wesentliche negative Auswirkungen auf den Umsatz, das bereinigte EBITDA, den operativen Cashflow oder die Liquiditätsposition haben werden.
- No expected negative material impact on revenue, adjusted EBITDA, cash from operations or cash position
- Required restatement of financial statements for FY2023 and three quarters of 2023
- Previously issued financial reports and communications deemed unreliable
DENVER, Dec. 04, 2024 (GLOBE NEWSWIRE) -- Medicine Man Technologies, Inc., operating as Schwazze, (OTC: SHWZ) (Cboe CA: SHWZ) ("Schwazze" or the "Company"), is providing an update on its previously announced delayed filings.
On November 29, 2024, the Audit Committee of the Company determined, following discussions with Baker Tilly and the Company’s management, that the Company’s previously issued audited consolidated financial statements for the two fiscal years ended December 31, 2023, audited by BF Borgers, and the Company’s unaudited condensed consolidated financial statements and the notes thereto as of and for the fiscal periods ended March 31, 2023, June 30, 2023, and September 30, 2023 included in the Company’s Quarterly Reports on Form 10-Q for the fiscal periods ended March 31, 2023, June 30, 2023, and September 30, 2023 that were filed with the SEC (collectively the “Subject Periods”) will be restated due to the identification of certain accounting adjustments needed primarily relating to technical accounting areas.
The Company has concluded that the impact of these corrections is material and as a result, the Subject Periods should no longer be relied upon. Similarly, any previously issued or filed reports, press releases, earnings releases, investor presentations or other communications of the Company describing the Company’s financial results or other financial information should no longer be relied upon to the extent that they are related to the Subject Periods.
Schwazze does not currently believe that the foregoing corrections will have any negative material impact on the Company’s revenue, adjusted EBITDA, cash from operations or cash position.
Additional details on the impact of these adjustments can be found in the Company’s related Form 8-K filed earlier today.
About Schwazze
Schwazze (OTC: SHWZ) (Cboe CA: SHWZ) is building a premier vertically integrated regional cannabis company with assets in Colorado and New Mexico and will continue to explore taking its operating system to other states where it can develop a differentiated regional leadership position. Schwazze is the parent company of a portfolio of leading cannabis businesses and brands spanning seed to sale.
Schwazze is anchored by a high-performance culture that combines customer-centric thinking and data science to test, measure, and drive decisions and outcomes. The Company's leadership team has deep expertise in retailing, wholesaling, and building consumer brands at Fortune 500 companies as well as in the cannabis sector.
Medicine Man Technologies, Inc. was Schwazze's former operating trade name. The corporate entity continues to be named Medicine Man Technologies, Inc. Schwazze derives its name from the pruning technique of a cannabis plant to enhance plant structure and promote healthy growth. To learn more about Schwazze, visit https://schwazze.com/.
Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements include financial outlooks; statements regarding the expected impact of the restatements and change in accounting treatment, including on the Company’s overall business operations, previously reported cash and cash equivalent balances, and strategic outlook; statements regarding the Company’s internal controls over financial reporting and ongoing internal reviews and assessments; any projections of net sales, earnings, or other financial items; any statements of the strategies, plans and objectives of our management team for future operations; expectations in connection with the Company's previously announced business plans; any statements regarding future economic conditions or performance; and statements regarding the intent, belief or current expectations of our management team. Such statements may be preceded by the words "may," "will," "could," "would," "should," "expect," "intends," "plans," "strategy," "prospects," "anticipate," "believe," "approximately," "estimate," "predict," "project," "potential," "continue," "ongoing," or the negative of these terms or other words of similar meaning in connection with a discussion of future events or future operating or financial performance, although the absence of these words does not necessarily mean that a statement is not forward-looking. We have based our forward-looking statements on management's current expectations and assumptions about future events and trends affecting our business and industry. Although we do not make forward-looking statements unless we believe we have a reasonable basis for doing so, we cannot guarantee their accuracy. Therefore, forward-looking statements are not guarantees of future events or performance, are based on certain assumptions, and are subject to various known and unknown risks and uncertainties, many of which are beyond the Company's control and cannot be predicted or quantified. Consequently, actual events and results may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, without limitation, that the Company has underestimated the scope and impact of the restatements, risks and uncertainties around the effectiveness of the Company’s disclosure controls and procedures and the effectiveness of the Company’s internal control over financial reporting, the risk that the Company’s restated financial statements may take longer to complete than expected, as well as those risks and uncertainties risks and uncertainties associated with (i) regulatory limitations on our products and services and the uncertainty in the application of federal, state, and local laws to our business, and any changes in such laws; (ii) our ability to manufacture our products and product candidates on a commercial scale on our own or in collaboration with third parties; (iii) our ability to identify, consummate, and integrate anticipated acquisitions; (iv) general industry and economic conditions; (v) our ability to access adequate capital upon terms and conditions that are acceptable to us; (vi) our ability to pay interest and principal on outstanding debt when due; (vii) volatility in credit and market conditions; (viii) the loss of one or more key executives or other key employees; and (ix) other risks and uncertainties related to the cannabis market and our business strategy. Any such risks and uncertainties could materially and adversely affect the Company’s results of operations, its profitability and its cash flows, which would, in turn, have a significant and adverse impact on the Company’s stock price. The Company cautions you not to place undue reliance on any forward-looking statements, which speak only as of the date they are made. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company's filings with the Securities and Exchange Commission (SEC), including the Company's Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q. Investors and security holders are urged to read these documents free of charge on the SEC's website at http://www.sec.gov. The Company assumes no obligation to publicly update or revise its forward-looking statements as a result of new information, future events or otherwise except as required by law. As noted above, investors are cautioned that the Subject Periods, and related investor communications, should no longer be relied upon; such communications include earnings releases, press releases, shareholder communications, investor presentations and other communications describing relevant portions of the Subject Periods.
Investor Relations Contact
Sean Mansouri, CFA or Aaron D’Souza
Elevate IR
(720) 330-2829
ir@schwazze.com
FAQ
Why is Schwazze (SHWZ) restating its financial statements?
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