Princeton Capital Restates Financials

TL;DR

Princeton Capital won't trust its old financials, needs to fix 'em.

AI Summary

Princeton Capital Corporation is filing an 8-K to report that it will not rely on previously issued financial statements or related audit reports due to an ongoing review. The company has identified potential errors in its historical financial reporting. The earliest event reported is January 8, 2025, with the filing date of January 14, 2025.

Why It Matters

This filing indicates potential inaccuracies in past financial reporting, which could impact investor confidence and the company's valuation until resolved.

Risk Assessment

Risk Level: medium — Non-reliance on financial statements suggests potential accounting issues that require investigation and restatement, creating uncertainty.

Key Players & Entities

• PRINCETON CAPITAL CORPORATION (company) — Registrant
• Maryland (jurisdiction) — State of incorporation
• January 8, 2025 (date) — Earliest event date
• January 14, 2025 (date) — Filing date

FAQ

Key Financial Figures

• $285,425 — no longer collectible in the amount of $285,425 and current liabilities erroneously did
• $373,996 — at had a net increase to liabilities of $373,996, of which $477,500 was an increase to l
• $477,500 — se to liabilities of $373,996, of which $477,500 was an increase to liabilities related
• $103,504 — ts of an ongoing litigation matter and ($103,504) was a net decrease to liabilities from
• $1,952,381 — ercompany transactions in the amount of $1,952,381 that are eliminated for consolidated pr
• $659,421 — es for a net decrease to net income of ($659,421), of which $103,504 from operations was
• $762,925 — s was a net increase to net income and ($762,925), expected results of an ongoing litiga
• $3.1 million — r Advantis from the originally reported $3.1 million net gain to approximately a net gain of
• $0.5 million — net gain to approximately a net gain of $0.5 million. At this time, the Company has not ful

Filing Documents

• ea0227524-8k_princeton.htm (8-K) — 30KB
• 0001213900-25-003402.txt ( ) — 196KB
• piac-20250108.xsd (EX-101.SCH) — 3KB
• piac-20250108_lab.xml (EX-101.LAB) — 33KB
• piac-20250108_pre.xml (EX-101.PRE) — 22KB
• ea0227524-8k_princeton_htm.xml (XML) — 3KB

From the Filing

UNITED SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): January 14, 2025 ( January 8, 2025 ) PRINCETON CAPITAL CORPORATION (Exact name of registrant as specified in its charter) Maryland 814-00710 46-3516073 (State or other jurisdiction of incorporation) (Commission File Number) (IRS Employer ID Number) 800 Turnpike Street Suite 300 North Andover , Massachusetts 01845 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (978) 794-3366 (Former name or former address, if changed since last report.) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (240.12b-2 of this chapter). Emerging growth company If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. Securities registered pursuant to Section 12(b) of the Act: Title of each class Trading Symbol(s) Name of each exchange on which registered None None None Item 4.02. Non-Reliance on Previously Issued Financial Statements or a Related Audit Report or Completed Interim Review. On January 8, 2025, the Audit Committee of Princeton Capital Corporation, a Maryland corporation (the "Company"), after discussions with the Company's management and WithumSmith&Brown, PC ("WithumSmith"), concluded that the Company's previously issued audited financial statements as of and for the year ended December 31, 2023 (the "Non-Reliance Period"), included in the Company's Annual Report on Form 10-K, filed with the Securities and Exchange Commission (the "SEC") on March 29, 2024 (the "2023 Form 10-K"), should no longer be relied upon and should be restated to properly summarize certain financial information for Advantis Certified Staffing Solutions, Inc. ("Advantis"), an unconsolidated significant subsidiary of the Company for the Non-Reliance Period. In Note 10 to the financial statements in the 2023 Form 10-K, the Company inadvertently reported incorrect summarized financial information for Advantis in its balance sheet and income that was deemed no longer collectible in the amount of $285,425 and current liabilities erroneously did not include adjusting journal entries that had a net increase to liabilities of $373,996, of which $477,500 was an increase to liabilities related to the expected results of an ongoing litigation matter and ($103,504) was a net decrease to liabilities from a write off of amounts no longer owed. With respect to the income statement, incorrect information was reported with respect to net revenue, gross profit and net income. Net revenue and gross profit erroneously included intercompany transactions in the amount of $1,952,381 that are eliminated for consolidated presentation. Net income erroneously included the same intercompany transactions in the amount of $1,952,381 that are eliminated for consolidated presentation. The remaining difference included adjusting journal entries for a net decrease to net income of ($659,421), of which $103,504 from operations was a net increase to net income and ($762,925), expected results of an ongoing litigation matter, was a net decrease to net income (collectively, the "Errors"). The Errors did not affect the Company's financial statements, only the Company's presentation of information regarding Advantis included in Note 10. Accordingly, investors should no longer rely upon the Company's previously released financial statements for the Non-Reliance Period. The Errors are estimated to reduce the net income reported in the 2023 Form 10-K for Advantis from the originally reported $3.1 million net gain to approximately a net gain of $0.5 million. At this time, the Company has not fully completed its review and the expected financial impact of the Errors described above is preliminary and subject to change. The Company will file an amended Form 10-K/A for fiscal year ended December 31, 2023, as soon as practicable. The foregoing changes will not

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