Movella Holdings Inc.: restructuring charge — Movella reveals $35-38M impairment, going concern doubt, and restatements, delays Q3 10-Q

Movella Holdings Inc.

Records non-cash goodwill and long-lived asset impairment of ~$35-38M in Q3 2023 due to share price drop and macro headwinds.
Restatements for Q1 and Q2 2023: D&O tail policy overstated assets by ~$1.9M; revenue overstated by $0.7M in Q2.
VLN Facility breached by restatements and late filing; interest rate may rise 3% to 12.25% unless waiver obtained.
Management expects inability to meet minimum EBITDA covenant in June 2024, raising substantial doubt about going concern.
Q3 10-Q delayed indefinitely as Audit Committee continues review; no filing date provided.

item 2.02 item 2.06 item 2.04 item 8.01 item 9.01

Key facts

Extracted from this filing and checked against the source text.

Restructurings & Charges SEC 8-K Item 2.05/2.06 confidence 0.9

Movella Holdings Inc. announced a impairment with charges of approximately $35 million to $38 million affecting goodwill and long-lived assets.

Type: impairment
Charge: approximately $35 million to $38 million
Affected area: goodwill and long-lived assets

Exact text from the filing

On November 10, 2023, the Company determined that it expects to record a non-cash impairment of its goodwill and long-lived assets of approximately $35 million to $38 million in its third quarter financial statements ended September 30, 2023.

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Source: SEC EDGAR

accession 0001628280-23-039029

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