Inspirato Inc: auditor change — Inspirato restates Q1/Q2 2022 results due to ASC 842 lease errors; 5% balance sheet understatement

Inspirato Inc

Audit Committee concludes Q1 and Q2 2022 financials should no longer be relied upon due to lease accounting errors.
Right-of-use assets and lease liabilities understated by ~9%; total assets and liabilities understated by ~5% each period.
Cost of revenue misstated: Q1 understated by ~1%, Q2 overstated by ~5%; revenue and operating cash flows unaffected.
Management concludes disclosure controls remained ineffective due to unremediated material weaknesses; remediation plan in development.
Company will file amended 10-Qs for the Non-Reliance Periods as soon as practicable.

item 4.02

Key facts

Extracted from this filing and checked against the source text.

Auditor Changes SEC 8-K Item 4.01/4.02 confidence 0.9

Inspirato Inc reported that prior financial statements should not be relied upon.

Action: non reliance

Exact text from the filing

On November 8, 2022, the Audit Committee (the “Audit Committee”) of the Board of Directors of Inspirato Incorporated (the “Company”) concluded, after discussion with the Company’s management, that the Company’s unaudited condensed consolidated financial statements as of and for the quarterly periods ended March 31, 2022 and June 30, 2022 (collectively, the “Non-Reliance Periods”) included in the Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission (the “SEC”) for the Non-Reliance Periods, should no longer be relied upon.

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Source: SEC EDGAR

accession 0001104659-22-117405

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