Endexx Corp: auditor change — Endexx restates FY2022 annual and Q1 FY2023 financials due to consolidation error

Endexx Corp

Management concluded prior unaudited 10-K (FY2022) and 10-Q (Q1 FY2023) should not be relied upon due to consolidation error.
Originally accounted for 51% Hyla US stake under equity method; now determines controlling financial interest required consolidation.
Amended 10-K filed June 9, 2023 with restated audited consolidated statements; further amendments expected by July 31, 2023.
Restatement includes $11.5M total consideration and $2M Series H Preferred reclassified as mezzanine equity.

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

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

Action: non reliance

Exact text from the filing

Restatement Background On June 9, 2023, Endexx Corporation’s (the “Company,” “our,” “we,” or “us”) management reached a final determination that the Company’s previously issued unaudited, financial statements and related disclosures for its fiscal year ended September 30, 2022 (the “Prior 10-K”), and for its fiscal quarter ended December 31, 2022 (the “Prior 10-Q”), each of which did not include Hyla US as a consolidated entity contained an error and should no longer be relied upon for the reason set forth below, i.e. , our ability to assert a controlling financial interest in Hyla US (as defined below). Effective August 31, 2022, we closed a transaction with Hyla UK Holdco Limited (“Hyla UK”), pursuant to which we, through our specially formed transaction subsidiary, purchased 51% of the issued and outstanding capital stock of Hyla US Holdco Limited (“Hyla US”), a wholly-owned operating

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Source: SEC EDGAR

accession 0001493152-23-025015

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