COMSovereign Holding Corp.: auditor change — COMSovereign to restate Q1 2022 financials; net loss of $1.2M restated to net income of $0.1M

COMSovereign Holding Corp.

Amortization of intangible assets overstated by $1.3M in Q1 2022, requiring restatement of Form 10-Q.
Previously reported net loss of $1.2M for Q1 2022 corrected to net income of $0.1M.
Error due to inadequate segregation of duties in small accounting staff; material weakness in internal controls continues.
Audit committee concluded previously issued interim financial statements for Q1 2022 should no longer be relied upon.

item 4.02 item 9.01

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

COMSovereign Holding Corp. reported that prior financial statements should not be relied upon.

Action: non reliance

Exact text from the filing

On January 25, 2023, management and the Audit Committee (the "Committee") of COMSovereign Holding Corp. (the “Company”) concluded that (a) the Company’s first quarter 2022 amortization of intangible assets was overstated, (b) the Company will restate its financial statements for the three month period ended March 31, 2022 (the “Restated Period”) to correct the error, and (c) the Company’s previously issued unaudited interim consolidated financial statements for the Restated Period included in its Quarterly Report on Form 10-Q for the Restated Period, as originally filed with the Securities and Exchange Commission ("SEC") on December 15, 2022, should no longer be relied upon.

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Source: SEC EDGAR

accession 0001213900-23-005707

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