Kestrel Group restates 2023-2024 financials due to revenue recognition errors; material weakness identified

Kestrel Group Ltd

Revenue understated by ~$2.4M in FY2023 and overstated by ~$1.6M in FY2024, plus $139K in Q1 2025.
Cumulative effect on shareholders' equity at May 27, 2025 merger completion was $674,000.
Audit Committee concluded prior financial statements should no longer be relied upon.
Material weakness in internal control over revenue recognition; remediation underway.
Company will file amended statements via Form 8-K/A with pro forma combined results.

item 4.02

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