Apple iSports Group Restates Financials
Ticker: AAPI · Form: 8-K · Filed: May 20, 2024 · CIK: 1134982
Sentiment: bearish
Topics: restatement, financial-reporting, accounting-issues
Related Tickers: ISPC
TL;DR
Apple iSports Group (ISPC) is ditching old financials - big accounting headache incoming.
AI Summary
Apple iSports Group, Inc. announced on April 16, 2024, that it will not rely on previously issued financial statements. This decision impacts financial reporting and requires a review of past financial data.
Why It Matters
This filing indicates potential issues with past financial reporting, which could affect investor confidence and require significant accounting adjustments.
Risk Assessment
Risk Level: high — Non-reliance on previously issued financial statements suggests significant accounting errors or control deficiencies, posing a substantial risk to the company and its investors.
Key Players & Entities
- Apple iSports Group, Inc. (company) — Registrant
- April 16, 2024 (date) — Date of earliest event reported
- Nevada (jurisdiction) — State of incorporation
- 000-32389 (file_number) — Commission File Number
- 88-0126444 (tax_id) — IRS Number
FAQ
What specific financial statements are affected by this non-reliance announcement?
The filing states that the company will not rely on 'previously issued financial statements or a related audit report or completed interim review,' implying all such prior reports are now suspect.
What is the primary reason for Apple iSports Group's decision to not rely on its previous financial statements?
The filing does not specify the exact reason but indicates a material issue that necessitates this action, likely related to accounting errors or internal control weaknesses.
When was the earliest event reported that led to this decision?
The earliest event reported is April 16, 2024.
What is the company's state of incorporation?
The company is incorporated in Nevada.
What is the Commission File Number for Apple iSports Group?
The Commission File Number is 000-32389.
Filing Stats: 585 words · 2 min read · ~2 pages · Grade level 14.3 · Accepted 2024-05-20 15:58:10
Key Financial Figures
- $19,506 — 211, resulting in a reclassification of $19,506 from common stock at par to additional
- $1,000,000 — d into a binding term sheet to transfer $1,000,000 AUD in the Company's shares to a third-
Filing Documents
- pvnc_8k.htm (8-K) — 22KB
- 0001477932-24-003158.txt ( ) — 140KB
- aapi-20240416.xsd (EX-101.SCH) — 6KB
- aapi-20240416_lab.xml (EX-101.LAB) — 14KB
- aapi-20240416_cal.xml (EX-101.CAL) — 1KB
- aapi-20240416_pre.xml (EX-101.PRE) — 9KB
- aapi-20240416_def.xml (EX-101.DEF) — 2KB
- pvnc_8k_htm.xml (XML) — 4KB
02 Non-Reliance on Previously Issued Financial Statements or a Related Audit Report or Completed Interim Review
Item 4.02 Non-Reliance on Previously Issued Financial Statements or a Related Audit Report or Completed Interim Review. The Company has previously filed its Form 10-Q for the quarterly periods ended March 31, 2023, June 30, 2023 and September 30, 2023 ("Previously Issued Financial Statements"). On April 16, 2024, the Company's management concluded that the Company's Previously Issued Financial Statements should be restated and no longer relied upon due to the Company not appropriately accounted for its research and development intellectual property rights, including the recording of the expense and its corresponding accounts payable. Additionally, the total number of common shares outstanding as of December 31, 2022 were incorrectly reflected as 202,704,211 shares when the actual number of outstanding shares was 7,642,211, resulting in a reclassification of $19,506 from common stock at par to additional paid in capital on the December 31, 2022 Condensed Consolidated Balance Sheet and the Condensed Consolidated Statements of Stockholders' Deficit for the three months ended March 31, 2023 and 2022, the three and six months ended June 30, 2023 and 2022, and the three and nine months ended September 30, 2023 and 2022. As such, in 2022, the Company, through its Australian subsidiary, entered into a binding term sheet to transfer $1,000,000 AUD in the Company's shares to a third-party in exchange for certain intellectual property. During the first quarter of 2023, the Company took possession of the intellectual property and commenced a trial period to review the intellectual property; however, the Company determined that the intellectual property was not viable for their operations and returned the intellectual property to the third-party. Since the Company took possession of the intellectual property, it recognized the related expense during the first quarter March 31, 2023; however, in April 2024, the Company and the third-party entered into a binding recission wher