Thoughtworks Holding, Inc.: auditor change — Thoughtworks restates Q2 and Q3 2023 cash flows; material weakness in internal controls

Thoughtworks Holding, Inc.

Will restate cash flow statements for quarters ended June 30 and Sept 30, 2023 due to misclassification of $14.0M contingent consideration payment.
Payment related to Connected Lab acquisition moved to financing activities; operating cash flow for those periods was understated.
Free cash flow for nine months ended Sep 30, 2023 restated to $30.2M from $16.3M.
Material weakness identified in internal controls over discrete, non-routine cash flow transactions; disclosure controls deemed ineffective.
Net cash, balance sheet, and income statement for the periods were not affected.

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

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

Action: non reliance

Exact text from the filing

On February 6, 2024, the Audit Committee of the Board of Directors (the “Audit Committee”) of Thoughtworks Holding, Inc. (the “Company”), concluded, after discussion with the Company’s management and consultation with the Company’s auditors, that the Company’s previously issued unaudited condensed consolidated financial statements as of and for the quarterly periods ended June 30, 2023 and September 30, 2023 (collectively, the “Non-Reliance Periods”) included in the Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission (the “SEC”) for the Non-Reliance Periods, (1) should no longer be relied upon due to an inaccurate presentation of the change in cash flows ascribed to operating activities in the condensed consolidated statement of cash flows

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Source: SEC EDGAR

accession 0001866550-24-000006

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