Movella Holdings Inc.: auditor change — Movella restates Q1 and Q2 2023 results; revenue overstated $0.7M, D&O tail policy misclassified

Movella Holdings Inc.

Previously issued unaudited financials for Q1 and Q2 2023 should no longer be relied upon.
D&O tail policy error: overstatements of ~$0.3M prepaid expenses, ~$1.6M capitalized equity costs.
Revenue from a customer contract erroneously recognized in Q2: overstatement of ~$0.7M revenue.
Corresponding understatement of deferred revenue by ~$0.7M as of June 30, 2023.
Company expects one or more material weaknesses in internal controls over financial reporting.

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

Movella Holdings Inc. reported that prior financial statements should not be relied upon.

Action: non reliance

Exact text from the filing

On November 10, 2023, management of Movella Holdings Inc. (the “Company”) concluded that the Company’s previously issued unaudited financial statements included in the Company’s Quarterly Reports on Form 10-Q for the periods ended March 31, 2023, and June 30, 2023 (the “Affected Periods”) should no longer be relied upon and should be restated.

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Source: SEC EDGAR

accession 0001628280-23-038740

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