LMP Automotive Holdings, Inc. Announces it Will Restate Previously Issued Financial Statements as of and For Each of the First Three Quarterly Periods in 2021
19 Mai 2022 - 11:00PM
LMP Automotive Holdings, Inc. (NASDAQ: LMPX) (“LMP” or the
“Company”), an e-commerce and facilities-based automotive retailer
in the United States, today announced that it plans to restate
previously issued financial statements as of and for each of the
first three quarterly periods in 2021 to correct certain accounting
items.
On May 16, 2022, management of LMP Automotive Holdings, Inc. and
the audit committee of the Company’s board of directors concluded
that the Company’s previously issued condensed consolidated
financial statements as of and for the quarters ended March 31,
2021, June 30, 2021, and September 30, 2021 are required to be
restated and should no longer be relied upon primarily due to the
following errors: (i) the improper identification and elimination
of intercompany transactions, (ii) incorrect estimates of
chargeback reserves for finance and insurance products, and (iii)
certain financial statement misclassifications impacting various
balance sheet and income statement financial statement captions in
the Relevant Periods.
The aggregate effects are currently estimated to be the
following:
- An approximate decrease in total revenues and total cost of
sales as follows:
-
- $10 to $15 million for the nine months ended September 30,
2021
- $4 to $8 million for the six months ended June 30, 2021
- $500 thousand to $1 million for the three months ended March
31, 2021
- Gross profit and net income for the Relevant Periods are not
expected to be materially impacted.
- Certain balance sheet captions for certain of the Relevant
Periods, including accounts payable, other non-current liabilities,
and other current assets, are expected to be materially
impacted.
- Total assets and total liabilities for the Relevant Periods are
not expected to be materially impacted.
The expected changes do not affect compliance with the financial
covenants contained in the Company’s outstanding debt instruments
or compliance with any other agreement of the Company or its
subsidiaries.
As such, the Company will restate its financial statements for
the Relevant Periods in its Annual Report on Form 10-K for the year
ended December 31, 2021 (the “2021 10-K”). The Company’s management
has concluded that in light of the misstatements described above,
material weaknesses exist in the Company’s internal control over
financial reporting and that the Company’s disclosure controls and
procedures were not effective. The Company’s planned remediation
with respect to such material weaknesses will be described in more
detail in the 2021 10-K.
The Company’s management and the Audit Committee have discussed
the matters disclosed in this Current Report on Form 8-K with its
independent registered public accounting firm.
The Company will hold a conference call to discuss these
financial results when it ascertains a definitive filing date.
ABOUT LMP AUTOMOTIVE HOLDINGS, INC.
LMP Automotive Holdings, Inc. (NASDAQ: LMPX) is
a growth company with a long-term plan to profitably consolidate
and partner with automotive dealership groups in the United States.
We offer a wide array of products and services fulfilling the
entire vehicle ownership lifecycle, including new and used
vehicles, finance and insurance products and automotive repair and
maintenance.
Our proprietary e-commerce technology and
strategy are designed to disrupt the industry by leveraging our
experienced teams, growing selection of owned inventories and
physical logistics network. We seek to provide customers with a
seamless experience both online and in person. Our physical
logistics network enables us to provide convenient free delivery
points for customers and provide services throughout the entire
ownership life cycle. We use digital technologies to lower our
customer acquisition costs, achieve operational efficiencies and
generate additional revenues. Our unique growth model generates
significant cash flows, which funds our innovation and expansion
into new geographical markets, along with strategically building
out dealership networks, creating personal transportation solutions
that consumers desire.
Investor Relations:
LMP Automotive Holdings, Inc.500 East Broward
Boulevard, Suite 1900Fort Lauderdale, FL
33394investors@lmpah.com
For more information visit:
https://lmpmotors.com/
FORWARD-LOOKING STATEMENTS:This press release
may contain “forward-looking statements” within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934, each as amended. Such statements
include, but are not limited to, any statements relating to our
expectations, beliefs, projections, future plans and strategies,
anticipated events or trends and similar matters that are not
historical facts. These statements may be preceded by, followed by
or include the words “aim,” “anticipate,” “believe,” “estimate,”
“expect,” “forecast,” “intend,” “likely,” “outlook,” “plan,”
“potential,” “project,” “projection,” “seek,” “can,” “could,”
“may,” “should,” “would,” will,” the negatives thereof and other
words and terms of similar meanings. Forward-looking statements are
based on management’s current expectations and are subject to risks
and uncertainties that could negatively affect our business,
operating results, financial condition and stock value. Factors
that could cause actual results to differ materially from those
currently anticipated include: our dependence upon external sources
for the financing of our operations; our ability to effectively
executive our business plan; our ability to maintain and grow our
reputation and to achieve and maintain the market acceptance of our
services and platform; our ability to manage the growth of our
operations over time; our ability to maintain adequate protection
of our intellectual property and to avoid violation of the
intellectual property rights of others; our ability to maintain
relationships with existing customers and automobile suppliers, and
develop relationships; and our ability to compete and succeed in a
highly competitive and evolving industry; as well as other risks
described in our SEC filings. There is no assurance that any
forward-looking statements will materialize. You are cautioned not
to place undue reliance on forward-looking statements, which
reflect expectations only as of this date. We expressly disclaim
any obligation or undertaking to release publicly any updates or
revisions to any forward-looking statements contained herein to
reflect any change in our expectations or any changes in events,
conditions or circumstances on which any such statement is based,
except as required by law.
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