Ispire Technology Restates Financials
Ticker: ISPR · Form: 8-K · Filed: Sep 18, 2024 · CIK: 1948455
| Field | Detail |
|---|---|
| Company | Ispire Technology INC. (ISPR) |
| Form Type | 8-K |
| Filed Date | Sep 18, 2024 |
| Risk Level | high |
| Pages | 3 |
| Reading Time | 4 min |
| Key Dollar Amounts | $0.0001, $875,000, $245,000, $4,900,000, $3,700,000 |
| Sentiment | bearish |
Sentiment: bearish
Topics: financial-restatement, internal-controls, accounting-issues
TL;DR
ISP's financials are toast, they're redoing them due to control issues.
AI Summary
Ispire Technology Inc. announced on September 12, 2024, that it will not rely on previously issued financial statements for the fiscal year ended June 30, 2024, and interim periods thereafter. This decision stems from an ongoing internal review of the company's internal controls over financial reporting.
Why It Matters
This announcement indicates potential issues with the company's financial reporting and internal controls, which could impact investor confidence and stock valuation.
Risk Assessment
Risk Level: high — The company is withdrawing previously issued financial statements, signaling significant potential accounting or control deficiencies.
Key Players & Entities
- Ispire Technology Inc. (company) — Registrant
- September 12, 2024 (date) — Date of earliest event reported
- June 30, 2024 (date) — Fiscal year end for withdrawn financials
- 001-41680 (company) — Commission file number
- 84-5106049 (company) — IRS Employer Identification No.
FAQ
What specific financial statements are being impacted by this non-reliance announcement?
The company will not rely on previously issued financial statements for the fiscal year ended June 30, 2024, and interim periods thereafter.
What is the primary reason for Ispire Technology Inc. not relying on its previously issued financial statements?
The decision is due to an ongoing internal review of the company's internal controls over financial reporting.
When was the earliest event reported in this 8-K filing?
The earliest event reported was on September 12, 2024.
What is Ispire Technology Inc.'s fiscal year end?
The company's fiscal year end is June 30.
What is the Commission file number for Ispire Technology Inc.?
The Commission file number for Ispire Technology Inc. is 001-41680.
Filing Stats: 950 words · 4 min read · ~3 pages · Grade level 15.4 · Accepted 2024-09-18 16:30:09
Key Financial Figures
- $0.0001 — ch registered Common Stock, par value $0.0001 per share ISPR The Nasdaq Stock Mar
- $875,000 — f lease payments totaling approximately $875,000 in the consolidated statements of cash
- $245,000 — ended June 30, 2023, and approximately $245,000 in the consolidated statements of cash
- $4,900,000 — eeds to add disclosure of approximately $4,900,000 of leased assets obtained in exchange f
- $3,700,000 — r ended June 30, 2023 and approximately $3,700,000 for the three months ended September 30
- $300,000 — ing and handling costs of approximately $300,000 needs to be reclassified from selling e
- $45,000 — year ended June 30, 2023, approximately $45,000 for the three months ended September 30
- $125,000 — d September 30, 2023, and approximately $125,000 and $170,000 for the three and six mont
- $170,000 — 0, 2023, and approximately $125,000 and $170,000 for the three and six months ended Dece
Filing Documents
- ea0214507-8k_ispire.htm (8-K) — 27KB
- 0001213900-24-079914.txt ( ) — 198KB
- ispr-20240912.xsd (EX-101.SCH) — 3KB
- ispr-20240912_lab.xml (EX-101.LAB) — 33KB
- ispr-20240912_pre.xml (EX-101.PRE) — 22KB
- ea0214507-8k_ispire_htm.xml (XML) — 4KB
02 Non-Reliance On Previously Issued
Item 4.02 Non-Reliance On Previously Issued
Financial Statements Or A Related Audit Report Or Completed Interim Review
Financial Statements Or A Related Audit Report Or Completed Interim Review. On September 12, 2024, the Audit Committee of the Board of Directors (the "Audit Committee") of Ispire Technology Inc. (the "Company") determined, based on the recommendation of management, that the Company's previously issued financial statements included in the Company's Annual Report on Form 10-K for the year ended June 30, 2023, and the Quarterly Report on Form 10-Q for the periods ended September 30, 2023 and December 31, 2023 should no longer be relied upon because of the following errors: The incorrect presentation of cash payments on operating leases under financing activities instead of operating activities. As a result of correcting this error, the Company's principal portion of lease payments totaling approximately $875,000 in the consolidated statements of cash flows for the year ended June 30, 2023, and approximately $245,000 in the consolidated statements of cash flows for the three months ended September 30, 2023 needs to be reclassified from financing activities to operating activities; The omission of disclosing non-cash investing and financing activities related to the acquisition of "right of use" (ROU) assets in exchange for operating lease liabilities. As a result of the correction of this error, the Company needs to add disclosure of approximately $4,900,000 of leased assets obtained in exchange for operating lease liabilities as a non-cash financing item in the consolidated statement of cash flows for the year ended June 30, 2023 and approximately $3,700,000 for the three months ended September 30, 2023; and The incorrect classification of shipping and handling costs as selling expenses (operating expenses) instead of being classified as cost of revenue. As a result of the restatement, the Company's shipping and handling costs of approximately $300,000 needs to be reclassified from selling expenses to cost of revenue for the year ended June 30, 2023, approximat