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FORT LAUDERDALE, FL, May 19, 2022 (GLOBE NEWSWIRE) — LMP Automotive Holdings, Inc. (LMPX) (“LMP” or the “Company”), a United States-based e-commerce and automotive retailer, announced today intends to restate previously issued financial statements as of and for each of the first three quarters of 2021 to correct certain accounting items.
On May 16, 2022, management of LMP Automotive Holdings, Inc. and the Audit Committee of the Company’s Board of Directors concluded that the Company’s previously released condensed consolidated financial statements as of and for the three months ended March 31 2021, June 30, 2021, and September 30, 2021 should be restated and should no longer be relied upon primarily due to the following errors: (i) incorrect identification and elimination of intercompany transactions, (ii) incorrect estimates of reserves chargebacks for finance and insurance products, and (iii) certain financial statement misclassifications affecting various financial statement line items of the balance sheet and income statement during the relevant periods.
The aggregate effects are currently estimated as follows:
- An approximate decrease in total revenue and total cost of sales as follows:
- Gross profit and net profit for the Relevant Periods are not expected to be materially impacted.
- Certain balance sheet headings for certain of the Relevant Periods, including accounts payable, other non-current liabilities and other current assets, are expected to be materially affected.
- Total assets and total liabilities for the Relevant Periods should not be materially impacted.
The expected changes do not affect compliance with financial covenants contained in the Company’s outstanding debt instruments or compliance with any other agreement of the Company or its subsidiaries.
As such, the Company will restate its financial statements for the relevant periods in its Annual Report on Form 10-K for the year ended December 31, 2021 (the “2021 10-K”). The Company’s management has concluded that, in light of the misstatements described above, material weaknesses exist in the Company’s internal control over financial reporting and that the Company’s disclosure controls and procedures Company information were not effective. The corrective actions planned by the Company regarding these material weaknesses will be described in more detail in the 10-K 2021.
Company management and the Audit Committee have discussed the matters disclosed in this current report on Form 8-K with its independent registered public accounting firm.
The Company will hold a conference call to discuss these financial results when it determines a final filing date.
ABOUT LMP AUTOMOTIVE HOLDINGS, INC.
LMP Automotive Holdings, Inc. (LMPX) is a growing company with a long-term plan to profitably consolidate and partner with automotive dealer groups in the United States. We offer a wide range of products and services covering the entire life cycle of a vehicle, including new and used vehicles, financing and insurance products, as well as repair and automotive maintenance.
Our proprietary e-commerce technology and strategy is designed to disrupt the industry by leveraging our experienced teams, growing selection of owned inventory and physical logistics network. We seek to provide customers with a seamless experience both online and in person. Our physical logistics network allows us to provide convenient free drop-off points for customers and provide services throughout the property lifecycle. We use digital technologies to reduce our customer acquisition costs, realize operational efficiencies and generate additional revenue. Our unique growth model generates significant cash flow, which funds our innovation and expansion into new geographic markets, as well as the strategic building of dealer networks, creating personal transportation solutions that consumers seek.
Investor Relations:
LMP Automotive Holdings, Inc.
500 East Broward Boulevard, Suite 1900
Fort Lauderdale, Florida 33394
[email protected]
For more information visit:
https://lmpmotors.com/
FORWARD-LOOKING STATEMENTS:
This press release may contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, each as amended. These statements include, but are not limited to, all statements relating to our expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar matters that are not historical facts. These statements may be preceded, followed by or include the words “aims”, “anticipates”, “believes”, “estimates”, “expects”, “plans”, “intends”, “likely”, “prospects”, “plan”, “potential”, “project”, “projection”, “seek”, “may”, “could”, “can”, “should”, “would”, will”, the negatives of those these and other words and terms of similar meaning. Forward-looking statements are based on management’s current expectations and are subject to risks and uncertainties that could adversely affect our business, results of operations, our financial condition and the value of our shares. Factors that could cause actual results to differ materially from those currently anticipated include: our reliance on external sources for funding our operations; our ability to effectively execute our business plan; our ability to maintain and develop r our reputation and to obtain and maintain market acceptance of our services and our platform; our ability to manage the growth of our operations over time; our ability to maintain adequate protection of our intellectual property and to avoid infringement of the intellectual property rights of others; our ability to maintain and develop relationships with existing automotive customers and suppliers; and our ability to compete and succeed in a highly competitive and evolving industry; and other risks described in our filings with the SEC. There can be no assurance that forward-looking statements will materialize. You are cautioned not to place undue reliance on forward-looking statements, which reflect expectations only as of that date. We expressly disclaim any obligation or undertaking to publicly release any updates or revisions to any forward-looking statement contained herein to reflect any change in our expectations or any change in events, conditions or circumstances on which any such statement is based, except if required by law.
