Cronos Group to Restate 2019 Financials
Cronos Group (NASDAQ: CRON) management announced on Tuesday that they will be restating items from the first three quarters of the cannabis company's fiscal 2019. In a press release, they stated that those quarterly reports "should no longer be relied upon."
The recommendation to restate the financials comes from the company's Audit Committee and its accounting firm, KPMG. The Audit Committee has been reviewing sales and purchases that took place during the quarters, and it will eliminate some transactions related to bulk resin purchases as well as certain wholesale product sales.
One consequence of the restatement is that it will reduce Cronos's revenue figures. For the period ending March 31, 2019, the company says 2.5 million Canadian dollars will come off its top line, which had totaled C$6.5 million. And for the period ending Sept. 30, 2019, Cronos will remove CA$5.1 million in revenue. During that period, the company had recorded sales of CA$12.7 million after excise taxes.
Source Fool.com
