ECD Automotive Design Restates Financials

TL;DR

ECD Automotive Design is restating financials due to accounting issues with warrants and stock. Avoid previous numbers.

AI Summary

ECD Automotive Design, Inc. announced on November 19, 2024, that it will not rely on previously issued financial statements for the fiscal year ended December 31, 2023, and interim periods ending March 31, 2024, June 30, 2024, and September 30, 2024. This decision is due to ongoing reviews and potential restatements related to the accounting for warrants and common stock.

Why It Matters

Investors should be aware that previously reported financial figures may be inaccurate, potentially impacting investment decisions and stock valuation.

Risk Assessment

Risk Level: medium — The non-reliance on previously issued financial statements indicates potential accounting irregularities that could lead to significant adjustments and investor uncertainty.

Key Players & Entities

• ECD Automotive Design, Inc. (company) — Registrant
• November 19, 2024 (date) — Date of Report
• December 31, 2023 (date) — Fiscal year end for restatement
• March 31, 2024 (date) — Interim period for restatement
• June 30, 2024 (date) — Interim period for restatement
• September 30, 2024 (date) — Interim period for restatement

FAQ

Key Financial Figures

• $1.0 million — n increase in net loss of approximately $1.0 million and $0.6 million for the years ended De
• $0.6 million — loss of approximately $1.0 million and $0.6 million for the years ended December 31, 2023 a
• $0.4 m — n increase in net loss of approximately $0.4 million, which primarily relates to the n
• $0.5 million — n increase in net loss of approximately $0.5 million and $0.9 million for the three and six
• $0.9 million — loss of approximately $0.5 million and $0.9 million for the three and six months ended June

Filing Documents

• ea022188801-8k_ecdauto.htm (8-K) — 45KB
• 0001213900-24-100240.txt ( ) — 259KB
• ecda-20241119.xsd (EX-101.SCH) — 3KB
• ecda-20241119_def.xml (EX-101.DEF) — 26KB
• ecda-20241119_lab.xml (EX-101.LAB) — 36KB
• ecda-20241119_pre.xml (EX-101.PRE) — 25KB
• ea022188801-8k_ecdauto_htm.xml (XML) — 5KB

02 Non-Reliance on Previously Issued Financial Statements

Item 4.02 Non-Reliance on Previously Issued Financial Statements or a Related Audit Report of Completed Interim Reports. Barton CPA ("Barton") was engaged by the Audit Committee of the Board of Directors (the " Audit Committee ") of ECD Automotive Design, Inc. (the " Company ") to be the independent registered public accounting firm of the Company, as a result of the order, dated May 3, 2024, issued by the U.S. Securities and Exchange Commission (" SEC ") suspending the Company's prior independent registered public accounting firm, BF Borgers CPA PC, from appearing and practicing as an accountant before the SEC. The Audit Committee engaged Barton to re-audit our financial statements for the fiscal years ended December 31, 2023 and December 31, 2022, that were included in the Company's Annual Report for the year ended December 31, 2023 on Form 10-K, filed with the SEC on May 3, 2024 (the " Original Form 10-K "), for inclusion in a resale registration statement on Form S-1, that the Company is obligated to file. In connection with Barton's audit of the fiscal years ended December 31, 2023 and December 31, 2022, we identified certain accounting errors relating to the presentation, timing, omission and classification of a number of items in the financial statements for the fiscal years ended December 31, 2023 and December 31, 2022 included in the Original Form 10-K (the "Previously Issued Financial Statements"). In accordance with SEC Staff Accounting Bulletin No. 99, "Materiality," and SEC Staff Accounting Bulletin No. 108, "Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements," the Company evaluated the corrections and has determined that the related impacts were material to the Previously Issued Financial Statements that contained the errors. On November 19, 2024, the Audit Committee, after discussion with the Company's management, who consulted with the Company's independent registered public acc

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Dated: November 19, 2024 ECD AUTOMOTIVE DESIGN, INC. By: /s/ Benjamin Piggott Name: Benjamin Piggot Title: Chief Financial Officer 4

View Full Filing

View this 8-K filing on SEC EDGAR