XWELL, Inc. (XWEL): auditor change — XWELL restates Q3 2023 financials on impairment accounting error; $1.6M understatement

XWELL, Inc.

Audit committee found GAAP misapplication in Treat segment impairment for Q3 2023.
Preliminary estimate: impairment expenses understated by $1,613,000 in Q3 2023.
Previously reported Q3 2023 impairment of ~$6.8M; restated financials will be in 2023 Form 10-K.
No impact on cash, cash equivalents, or marketable securities balances.
Management expects at least one material weakness in internal controls related to the restatement.

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

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

Action: non reliance
Auditor: Marcum LLP

Exact text from the filing

the Audit Committee concluded that it is appropriate to correct the misapplication of GAAP described above for financial statements for Q3 2023 included in the Third Quarter Quarterly Report, by restating such unaudited financial information because the errors in the financial statements are material to the financial statements for Q3 2023. As a result, unaudited financial statements for Q3 2023 should no longer be relied on.

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Source: SEC EDGAR

accession 0001104659-24-046836

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