Cottonwood Communities, Inc.: auditor change — Cottonwood Communities restates cash flow statements for 2022, suspends IPO subscriptions

Cottonwood Communities, Inc.

Audit committee determined financial statements for Q1-Q3 2022 and FY2022 should no longer be relied upon due to cash flow classification error.
Error misclassified accrued deferred offering costs between operating and financing activities; no impact on total cash, revenue, net income, or net asset value.
Restatement will be filed in amended 10-K; adjustments range from $1.6M to $4.8M per period.
Company suspended accepting subscriptions in its $1B IPO until corrected financials are cleared by SEC.
Material weakness in internal controls over financial reporting expected to be disclosed.

item 4.02 item 8.01

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

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

Action: non reliance

Exact text from the filing

should no longer be relied upon due to an inaccurate presentation of the change in cash flows ascribed to financing and operating activities

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Source: SEC EDGAR

accession 0001692951-23-000153

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