Planet 13 Holdings: Prior Financial Statements Unreliable

TL;DR

**Planet 13 just said don't trust their old financial reports!**

AI Summary

Planet 13 Holdings Inc. filed an 8-K on January 25, 2024, indicating that investors should no longer rely on previously issued financial statements or related audit reports. This means the financial information the company previously provided, which investors used to make decisions, is now considered unreliable. This matters to investors because it signals potential inaccuracies in past financial reporting, which could lead to a re-evaluation of the company's financial health and stock value.

Why It Matters

This filing indicates that Planet 13's past financial reports cannot be trusted, which could significantly impact investor confidence and the company's stock price as its financial health is now uncertain.

Risk Assessment

Risk Level: high — A company stating its past financial statements are unreliable is a major red flag, indicating potential accounting issues and significant uncertainty for investors.

Analyst Insight

A smart investor would hold off on buying or consider selling Planet 13 Holdings Inc. stock until the company clarifies the extent of the financial statement issues and provides restated, reliable financial information.

Key Players & Entities

• Planet 13 Holdings Inc. (company) — the registrant filing the 8-K
• January 25, 2024 (date) — date of earliest event reported
• Nevada (company) — state of incorporation for Planet 13 Holdings Inc.
• 000-56374 (company) — Commission File Number for Planet 13 Holdings Inc.

Forward-Looking Statements

• Planet 13 Holdings Inc. will likely issue restated financial statements. (Planet 13 Holdings Inc.) — high confidence, target: Q1 2024
• The stock price of Planet 13 Holdings Inc. will experience increased volatility. (Planet 13 Holdings Inc.) — high confidence, target: next 3 months

FAQ

Key Financial Figures

• $22.0 million — ved misappropriation of approximately US$22.0 million of the Company's funds held by El Capit
• $16.5 million — d a decrease of cash by approximately US$16.5 million for the year ended December 31, 2022, w
• $5.5 million — 23 will also reflect an approximately US$5.5 million restricted cash amount.   The Co

Filing Documents

• plnh20240125_8k.htm (8-K) — 36KB
• ex_619486.htm (EX-99.1) — 11KB
• ex_619486img001.jpg (GRAPHIC) — 5KB
• 0001437749-24-002227.txt ( ) — 185KB
• plnh-20240125.xsd (EX-101.SCH) — 3KB
• plnh-20240125_def.xml (EX-101.DEF) — 11KB
• plnh-20240125_lab.xml (EX-101.LAB) — 15KB
• plnh-20240125_pre.xml (EX-101.PRE) — 11KB
• plnh20240125_8k_htm.xml (XML) — 2KB

02

Item 4.02 Non-Reliance on Previously Issued Financial Statements or a Related Audit Report or Completed Interim Review.   On January 25, 2024, as a result of the preliminary information obtained in connection with an ongoing internal investigation, the Audit Committee (the " Audit Committee ") of the Board of Directors of Planet 13 Holdings Inc. (the " Company "), based on the recommendation of the Company's management, and after consultation with the Company's independent registered public accounting firm, concluded that the Company's previously issued audited consolidated financial statements as of and for the years ended December 31, 2022 and 2021 included in the Company's Annual Report on Form 10-K for the year ended December 31, 2022 (the " 2022 Annual Report ") and the Company's previously issued unaudited consolidated financial statements included in the Quarterly Reports on Form 10-Q for the quarters ended March 31, 2023, June 30, 2023 and September 30, 2023 (the " 2023 Quarterly Reports " and, together with the 2022 Annual Report, the " Reports " and all financial statements included in the Reports, collectively, the " Affected Financials ") should no longer be relied upon due to material errors due to the believed misappropriation of approximately US$22.0 million of the Company's funds held by El Capitan Advisors, Inc. (" El Capitan "). Similarly, any previously furnished or filed reports, related earnings releases, related management's discussion and analysis of financial condition and results of operations, investor presentations or similar communications of the Company describing relevant portions of the Affected Financials should no longer be relied upon.   El Capitan is an investment advisor registered with the Securities and Exchange Commission (the " SEC ") that was engaged by the Company on June 20, 2021 for cash management services. Additional information regarding the El Capitan matter is disclosed in a press release issued by the

01

Item 8.01 Other Events.   On January 26, 2024, the Company issued a press release announcing the restatement of certain financial statements. A copy of the press release is filed as Exhibit 99.1 hereto and incorporated into this Item 8.01 by reference.   Cautionary Note Regarding Forward-Looking Information   This Current Report on Form 8-K contains forward-looking information and forward-looking statements within the meaning of applicable securities laws. All statements, other than statements of historical fact, are forward-looking statements and are often, but not always, identified by phrases such "plans", "expects", "proposed", "may", "could", "would", "intends", "anticipates", or "believes", or variations of such words and phrases. In this Current Report on Form 8-K, forward-looking statements relate to information concerning, without limitation, statements regarding the anticipated financial statements impact of the issues identified in the Affected Financials and the Company's anticipated timing of the filing of the Amended Reports. Such forward-looking statements reflect what management of the Company believes, or believed at the time, to be reasonable assumptions and accordingly readers are cautioned not to place undue reliance upon such forward-looking statements and that actual results may vary from such forward-looking statements. These assumptions, risks and uncertainties which may cause actual results to differ include, among others, including the risk that the completion and filing of the Amended Reports will take longer than expected and that additional information may become known prior to the expected filing of the Amended Reports. A discussion of these and other risks and uncertainties that could cause the Company's actual results to differ materially from these forward-looking statements is included under the heading "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2

Financial Statements and Exhibits

Financial Statements and Exhibits.   (d) Exhibits   Exhibit No.   Description 99.1   Press Release dated January 26, 2024 . 104   Cover Page Interactive Data File – the cover page XBRL tags are embedded within the Inline XBRL document.     3    

SIGNATURES

SIGNATURES   Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.     Planet 13 Holdings Inc.           Date: January 26, 2024 By: /s/ Robert Groesbeck     Name Robert Groesbeck     Its: Co-Chief Executive Officer           Date: January 26, 2024 By: /s/ Larry Scheffler     Name: Larry Scheffler     Its: Co-Chief Executive Officer     4

View Full Filing

View this 8-K filing on SEC EDGAR