Movella Holdings Inc.: auditor change — Movella restates 2020-2022 financials due to VIE loss allocation error; expects material weaknesses

Movella Holdings Inc.

Management concludes financial statements for YE 2020-2022 and interim periods should no longer be relied upon.
Error: VIE losses not fully allocated to non-controlling interest with liquidation preference; 100% of losses up to preference should have been allocated to NCI.
Company expects restatement will not affect cash or cash flows, but likely one or more material weaknesses in internal control.
Audit committee discussed with auditors Marcum LLP and former auditor RSM US LLP.
No expected cash impact, but restatement and control weaknesses may affect investor confidence.

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 19, 2024, management of Movella Holdings Inc. (the “Company”) concluded that the Company’s previously issued audited financial statements for the years ended December 31, 2022, 2021, and 2020, as well as the interim periods therein, included in the Company’s Form 8-K/A filed on March 31, 2023 (the “Affected Periods”) should no longer be relied upon and should be restated.

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Source: SEC EDGAR

accession 0001628280-24-049181

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