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- Restatement (new) — Company is restating three years of annual and quarterly financial statements due to inventory accounting errors.
Solésence restates 3 years of financials for inventory accounting errors
Filed August 21, 2026 · Period ending August 17, 2026 · ~1 min read
Key Changes
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Company restating all financials from Dec 2023 through Mar 2026 after discovering inventory accounting violated ASC 330 requirements; overstated inventories and misstated cost of revenue, gross profit, operating income, net income, EPS, and equity.
Item 4.02 verify on EDGAR → -
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Historical process used unsupported budget-based percentages to allocate labor and overhead across inventory categories, failed to limit capitalized costs to eligible amounts, and did not adjust standard costs to approximate actual costs.
Item 4.02 verify on EDGAR → -
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Item 4.02 verify on EDGAR →
Summary
Solésence disclosed a material accounting failure requiring restatement of three full years of financial statements. The company discovered its inventory accounting process violated ASC 330 requirements by using unsupported budget-based allocations for labor and overhead costs, failing to properly limit capitalized costs, and not adjusting standard amounts to approximate actual costs.
The errors overstated inventories on the balance sheet and misstated cost of revenue, cascading through gross profit, operating income, net income, earnings per share, and stockholders' equity. The Audit Committee, Board, and executive officers formally concluded on August 17, 2026 that all financial statements from December 31, 2023 through March 31, 2026 should no longer be relied upon.
This encompasses three annual reports and ten quarterly reports. Amended filings are expected in the coming weeks, meaning investors currently lack reliable historical financial data spanning the entire period. The pervasive nature of the errors across virtually every key financial metric and the three-year scope signal a fundamental breakdown in inventory cost accounting controls that raises serious questions about the reliability of the company's financial reporting processes.
Section-by-Section Diff
Event · Item 4.02 — Non-Reliance on Previously Issued Financial Statements
Item 4.02 — Non-Reliance on Previously Issued Financial Statements filed; see Key Changes for terms.
Added in current filing · verify on EDGAR →
As a result, inventories were overstated and cost of revenue were misstated. The errors also affected gross profit, operating income (loss), income (loss) before income taxes, net income (loss), basic and diluted earnings (loss) per share, accumulated deficit, total stockholders’ equity and related disclosures in the periods affected.
The inventory errors caused inventories to be overstated on the balance sheet and cost of revenue to be misstated on the income statement. This cascaded through virtually every key financial metric including gross profit, operating income, net income, earnings per share, and stockholders' equity. The pervasive nature of the impact indicates material misstatements across the financial statements.
Added in current filing · verify on EDGAR →
on August 17, 2026, the Audit Committee, Board of Directors and Executive Officers of the Company concluded that the Company’s previously issued consolidated financial statements as of and for December 31, 2023, March 31, 2024, June 30, 2024, September 30, 2024, December 31, 2024, March 31, 2025, June 30, 2025, September 30, 2025, December 31, 2025 and March 31, 2026 should no longer be relied upon and should be restated. The Company expects to file amendments, as applicable and necessary, to its Annual Reports on Form 10-K which will impact the years ended December 31, 2023, 2024 & 2025 and its Quarterly Reports on Form 10-Q for the quarters ended March 31, 2024, June 30, 2024, September 30, 2024, March 31, 2025, June 30, 2025, September 30, 2025 and March 31, 2026 in the coming weeks.
The company will restate three full years of annual financials and ten quarters of results spanning from December 31, 2023 through March 31, 2026. The Audit Committee, Board, and executive officers formally concluded these prior statements should no longer be relied upon. Amended filings are expected in the coming weeks, meaning investors currently lack reliable historical financial data for the company.
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Figures/quotes linked to EDGAR · Narrative written by AI · Aug 24, 2026 · How we verify