Current Report Filing (8-k)
May 19 2022 - 5:02PM
Edgar (US Regulatory)
0001731727
false
0001731727
2022-05-16
2022-05-16
iso4217:USD
xbrli:shares
iso4217:USD
xbrli:shares
UNITED STATES
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):
May 16, 2022
LMP AUTOMOTIVE HOLDINGS, INC.
(Exact Name of Registrant as Specified in Charter)
Delaware |
|
333-236260 |
|
82-3829328 |
(State
or Other Jurisdiction
of Incorporation) |
|
(Commission
File Number) |
|
(IRS
Employer
Identification No.) |
500
East Broward Blvd., Suite 1900, Ft. Lauderdale, Florida |
|
33394 |
(Address
of Principal Executive Offices) |
|
(Zip
Code) |
Registrant’s telephone number, including
area code: (954) 895-0352
N/A
(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 (see General Instruction A.2. below):
☐ |
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 |
Common Stock, $0.0001 par
value per share |
|
LMPX |
|
NASDAQ Capital Market |
Item
4.02 Non-Reliance on Previously Issued Financial Statements or Related Audit
Report or Completed Interim Review.
On May 16, 2022, management of LMP Automotive Holdings, Inc., a Delaware
corporation (the “Company”) and the audit committee of the Company’s board of directors (the “Audit Committee”),
concluded that the Company’s previously issued condensed consolidated financial statements as of and for the quarters ended March
31, 2021, June 30, 2021, and September 30, 2021 (collectively, the “Relevant Periods”) are required to be restated and should
no longer be relied upon primarily due to the following errors: (i) the improper identification and elimination of intercompany transactions,
(ii) incorrect estimates of chargeback reserves for finance and insurance products, and (iii) certain financial statement misclassifications
impacting various balance sheet and income statement financial statement captions in the Relevant Periods.
The aggregate effects are currently estimated to be the following:
|
● |
An approximate decrease in total revenues and total cost of sales as follows: |
|
|
|
|
|
■ |
$10 to $15 million for the nine months ended September 30, 2021 |
|
|
|
|
|
|
■ |
$4 to $8 million for the six months ended June 30, 2021 |
|
|
|
|
|
|
■ |
$500 thousand to $1 million for the three months ended March 31, 2021 |
|
|
|
|
● |
Gross profit and net income for the Relevant Periods are not expected to be materially impacted. |
|
|
|
|
● |
Certain balance sheet captions for certain of the Relevant Periods, including accounts payable, other non-current liabilities, and other current assets, are expected to be materially impacted. |
|
|
|
|
● |
Total assets and total liabilities for the Relevant Periods are not expected to be materially impacted. |
The expected changes do not affect compliance with the 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 were not effective. The Company’s
planned remediation with respect to such material weaknesses will be described in more detail in the 2021 10-K.
The Company’s 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.
Cautionary Statements Regarding Forward-Looking Statements
This Current Report on Form 8-K includes “forward-looking
statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Certain
of these forward-looking statements can be identified by the use of words such as “believes,” “expects,” “intends,”
“plans,” “estimates,” “assumes,” “may,” “should,” “will,” “seeks,”
or other similar expressions. These statements are based on current expectations on the date of this Current Report on Form 8-K
and involve a number of risks and uncertainties that may cause actual results to differ significantly. The Company does not assume any
obligation to update or revise any such forward-looking statements, whether as the result of new developments or otherwise. Readers are
cautioned not to put undue reliance on forward-looking statements.
Item 8.01 Other Events
The Company issued a press release on May 19, 2022 indicating that
the Company will restate its previously issued condensed consolidated financial statements as of and for the Relevant Periods, as indicated
in Item 4.02 above.
Item 9.01. Financial Statements and Exhibits
(d) Exhibits
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: May 19, 2022
|
LMP AUTOMOTIVE HOLDINGS, INC. |
|
|
|
By: |
/s/
Sam Tawfik |
|
|
Name: |
Sam Tawfik |
|
|
Title: |
Chief Executive Officer |
4
LMP Automotive (NASDAQ:LMPX)
Historical Stock Chart
From Apr 2024 to May 2024
LMP Automotive (NASDAQ:LMPX)
Historical Stock Chart
From May 2023 to May 2024