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- Restatement (new) — The company is restating three quarters of 2025 financials due to a material error in merger accounting.
Olenox restates Q1-Q3 2025 financials after $15.8M merger accounting error
Filed August 6, 2026 · Period ending July 31, 2026 · ~1 min read
Key Changes
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high
Auditors notified management that Q1-Q3 2025 financials contain material errors and should not be relied upon; amended 10-Qs will be filed once restatement is complete.
Item 4.02 verify on EDGAR → -
high
Company overstated Series A Preferred Stock issued in New Asia Holdings merger by $15.8M ($34.6M recorded vs. $18.8M fair value at acquisition date).
Item 4.02 verify on EDGAR → -
high
Error reduces goodwill and stockholders' equity by $15.8M but does not affect net loss, EPS, cash flows, or working capital for any affected period.
Item 4.02 verify on EDGAR → -
medium
Error stems from incorrect calculation of acquisition-date fair value of preferred stock under ASC 805 business combination accounting rules.
Item 4.02 verify on EDGAR →
Summary
Olenox disclosed that its auditors identified a material error in how the company valued Series A Preferred Stock issued in its merger with New Asia Holdings. The shares were recorded at $34.6 million when the correct acquisition-date fair value was $18.8 million—a $15.8 million overstatement.
As a result, the company's Q1, Q2, and Q3 2025 financial statements can no longer be relied upon and will be restated via amended 10-Qs. The error affects the balance sheet: goodwill and stockholders' equity will each be reduced by $15.8 million. However, the correction does not change net loss, earnings per share, cash flows, or working capital for any of the affected periods, limiting the operational impact.
The mistake arose from incorrect application of ASC 805 fair-value measurement rules at the acquisition date. A restatement of three consecutive quarters raises concerns about the company's internal controls over financial reporting and the rigor of its merger accounting processes. Investors should watch for management's assessment of control deficiencies and any auditor commentary when the amended filings are released.
Section-by-Section Diff
Event · Item 4.02 — Non-Reliance on Previously Issued Financial Statements
Olenox restates Q1-Q3 2025 financials after auditors identified $15.8M overstatement of merger consideration and goodwill.
Added in current filing · verify on EDGAR →
On July 31, 2026, Olenox Industries, Inc.’s (“Olenox” or the “Company”) independent auditors at the time notified Company management that they believed the Company’s unaudited condensed consolidated financial statements included in its Quarterly Reports on Form 10-Q for the quarterly periods ended March 31, 2025, June 30, 2025, and September 30, 2025, were materially incorrect and should not be relied upon.
The company's auditors notified management that three quarters of 2025 financial statements contain material errors and should not be relied upon. The company will file amended quarterly reports with restated financials once completed and reviewed by the auditor.
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Figures/quotes linked to EDGAR · Narrative written by AI · Aug 21, 2026 · How we verify