Appgate, Inc.: auditor change — Appgate restates 2020-2022 financials for revenue, commission, equity compensation errors

Appgate, Inc.

Revenue overstated by ~$2.3M in 2021, ~$0.6M in 2020, and ~$0.3M/$0.4M in Q1/Q2 2022.
Contract assets overstated by up to $4.0M; deferred revenue understated by up to $0.3M.
Sales & marketing expenses understated by ~$2.1M in 2021 and ~$2.2M in 2020 due to commission amortization error.
Equity-based compensation for Chairman's time-based award understated G&A by $3.6M in 2022.
Diluted EPS calculation incorrectly included convertible shares; will be corrected.

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

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

Action: non reliance
Auditor: BDO USA, LLP

Exact text from the filing

determined that the Company’s financial statements as of and for the years ended December 31, 2021 and 2020, the interim periods within those years, and the Company’s financial statements for the interim periods ended March 31, 2022 and June 30, 2022 (collectively, the “Subject Financial Statements”) should no longer be relied upon because of errors in the Subject Financial Statements

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Source: SEC EDGAR

accession 0001628280-22-028963

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