Symbotic Restates Financials Amidst Review

Ticker: SYM · Form: 8-K · Filed: 2024-11-18T00:00:00.000Z

Sentiment: bearish

Topics: accounting-restatement, financial-reporting, sec-filing

TL;DR

Symbotic's financials are under review, don't trust old numbers.

AI Summary

Symbotic Inc. announced on November 18, 2024, that it will not rely on previously issued financial statements or related audit reports due to an ongoing review. The company is investigating potential accounting errors related to the recognition of revenue and cost of goods sold for certain customer arrangements, which could impact previously reported financial results.

Why It Matters

This filing indicates potential inaccuracies in Symbotic's past financial reporting, which could affect investor confidence and the company's stock price.

Risk Assessment

Risk Level: high — The company is withdrawing reliance on previously issued financial statements, signaling significant accounting issues that could lead to restatements and impact valuation.

Key Players & Entities

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 subject to review.

What is the primary reason for Symbotic's non-reliance on its financial statements?

The company is conducting an internal review to assess potential accounting errors related to the recognition of revenue and cost of goods sold for certain customer arrangements.

When was this Form 8-K filed?

This Form 8-K was filed on November 18, 2024.

What is the potential impact of these accounting errors on Symbotic's financial results?

The company is still assessing the impact, but it could result in the need to restate previously issued financial results.

Has Symbotic identified the specific customer arrangements causing the accounting review?

The filing mentions 'certain customer arrangements' but does not provide specific details or names of customers in this initial announcement.

Filing Stats: 817 words · 3 min read · ~3 pages · Grade level 12.6 · Accepted 2024-11-18 16:04:53

Key Financial Figures

Filing Documents

02 Results of Operations and Financial Condition

Item 2.02 Results of Operations and Financial Condition On November 18, 2024, Symbotic Inc. (the "Company") issued a press release announcing its financial results and other information for the fiscal quarter and year ended September 28, 2024. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated by reference herein. Also on November 18, 2024, Symbotic Inc. posted on its investor relations website a supplemental presentation relating to its previously issued fiscal 2024 quarterly financial statements. A copy of the supplemental presentation is furnished as Exhibit 99.2 to this Current Report on Form 8-K and is incorporated by reference herein. The information furnished pursuant to this Item 2.02, including Exhibit 99.1 and Exhibit 99.2, shall not be deemed "filed" for any purpose, including for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that Section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filing, except as shall be expressly set forth by specific reference in such filing.

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 On November 18, 2024, the Company, on the recommendation of the Audit Committee of the Company's Board of Directors, determined that it will be required to restate its previously issued unaudited interim financial statements for the first, second and third quarters of fiscal year 2024 that were previously filed in the Company's quarterly reports on Form 10-Q on February 8, 2024, May 7, 2024 and July 31, 2024, respectively. The Company's previously issued financial statements for these periods should therefore no longer be relied upon. The planned restatement being disclosed today is being made in connection with the Company's identification, during fiscal year 2024, of goods and services, primarily relating to specific milestone achievements, being expensed prior to the time that the corresponding milestones were achieved. This resulted in the acceleration of the recognition of cost of revenue. Given that the Company recognizes revenue on a percentage of completion basis, this resulted in the acceleration of recognition of revenue. The Audit Committee of the Company's Board of Directors discussed the matters disclosed in this Current Report on Form 8-K with Grant Thornton LLP, the Company's independent registered public accounting firm, prior to making its recommendation to the Company.

01 Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits. (d) Exhibits Exhibit Description 99.1 Symbotic Inc. Press Release, dated November 18, 2024 99.2 Symbotic Inc. Supplemental Presentation , dated November 18, 2024 104 Cover Page Interactive Data File (embedded within the Inline XBRL document) SIGNATURE 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. Date: November 18, 2024 Symbotic Inc. By: /s/ Maria G. Freve Name: Maria G. Freve Title: Vice President, Controller and Chief Accounting Officer (Principal Accounting Officer) .

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