Kestrel Group Ltd (KG): auditor change — 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

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

Kestrel Group Ltd reported that prior financial statements should not be relied upon.

Action: non reliance

Exact text from the filing

On August 11, 2025, the Audit Committee of the Board of Directors of Kestrel Group Ltd (the “Company”), after consultation with management, Ernst & Young LLP (“EY”), the Company’s independent registered public accounting firm, and Frazier & Deeter, LLC (“FD”), Kestrel Group, LLC’s former independent registered public accounting firm, concluded that the previously issued consolidated financial statements of Kestrel Group, LLC (“Kestrel”) for the fiscal years ended December 31, 2023 and 2024, should no longer be relied upon

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Kestrel Group Ltd filing history →

Source: SEC EDGAR

accession 0001104659-25-076249

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