Samsara Luggage, Inc. (OTC Market:PINK:SAML), a Nevada-based retail company with a market capitalization of $2.52 million and trailing twelve-month revenue of $2.7 million, announced on Friday that its previously issued financial statements for the first three quarters of 2024 should no longer be relied upon.
According to InvestingPro data, the company has been experiencing significant financial challenges, with an EBITDA of -$2.22 million in the last twelve months. The Audit Committee of the company's board of directors identified a misstatement in the unaudited consolidated financial statements filed on May 31, August 21, and November 19, 2024, related to a transaction between entities under common control.
The financial documents in question incorrectly presented the transaction at fair value instead of book value, leading to an overstatement of Goodwill and Stockholders’ Equity (Deficit). The company will amend its Forms 10-Q for the periods ending March 31, June 30, and September 30, 2024, to rectify the inaccuracies. The restated financial statements will undergo review by the company’s auditors, Bush & Associates CPA, and will include the necessary restatement footnote disclosures as per ASC 250-10-50-7 through 50-11.
The need for restatement and the subsequent filing of the amended financial reports is expected to correct the presentation of Goodwill and Stockholders’ Equity in the company's financial records. Samsara Luggage has notified its independent auditors of the necessary amendments, and the corrected financial statements will be labeled as restated in the upcoming filings.
This news is based on a recent SEC filing by Samsara Luggage, Inc. For deeper insights into Samsara's financial health and future prospects, InvestingPro subscribers have access to over 10 additional exclusive ProTips and comprehensive financial metrics that can help inform investment decisions.
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