Tattooed Chef to Restate 2021 Quarterly Financial Statements to Recognize Deferred Tax Asset
March 11 2022 - 4:30PM
Tattooed Chef, Inc. (Nasdaq: TTCF) (“Tattooed
Chef” or the “Company”), a leader in plant based foods, today
announced that it will restate prior period financial statements
for each of the quarterly periods ended March 31, 2021, June 30,
2021 and September 30, 2021 because the Company did not properly
record the tax effects associated with the Company’s issuance of
825,000 shares of its common stock to Harrison Co. in June 2021 as
partial consideration for services rendered in connection with the
Company’s de-SPAC transaction that occurred in October 2020. The $4
million deferred tax asset that should have been recorded as of
December 31, 2020 (with a corresponding offset to additional
paid-in-capital) was determined to have an immaterial impact on the
Company’s consolidated financial statements as of and for the year
ended December 31, 2020. However, the impact of this error, when
combined with other immaterial error corrections for the quarter
ended March 31, 2021, was determined to be material to the
Company’s consolidated balance sheet as of March 31, 2021. In June
2021, the Company recorded a full valuation allowance on all of its
deferred tax assets. Accordingly, the increase in the valuation
allowance associated with this deferred tax asset was also deemed
to be material to the Company’s results of operations for the three
and six months ended June 30, 2021 and the nine months ended
September 30, 2021.
The estimated effects of the restatements on the
Company’s consolidated statement of operations to properly record
the deferred tax asset and the related valuation allowance are as
follows:
- an increase of net loss of $4.0
million, or ($0.05) per share and $4.0 million, or ($0.05) per
share, for the three and six months ended June 30, 2021,
respectively; and
- an increase of net loss of $0.0
million, or ($0.00) per share, and $4.0 million, or ($0.05) per
share, for the three and nine months ended September 30, 2021,
respectively.
The Company expects that the restatements to properly recognize
the deferred tax asset and the related valuation allowance will
have no effect on its previously reported:
- revenues for any period;
- cash flows for any period;
- (loss) earnings before tax for any period;
- Adjusted EBITDA for any period; and
- liquidity position for any period
The Company further expects that the
restatements will have no effect on its future operations.
In connection with the restatements, the Company
will file amended quarterly Reports on Form 10-Q for the quarterly
periods ended March 31, 2021, June 30, 2021 and September 30, 2021
with the SEC as soon as practicable.
The Company is filing today with the United
States Securities and Exchange Commission a Form 8-K about the
restatements and associated disclosures, a copy of which is
available free of charge at www.sec.gov.
About Tattooed Chef
Tattooed Chef is a leading plant-based food
company offering a broad portfolio of innovative and sustainably
sourced plant-based foods. Tattooed Chef’s signature products
include ready-to-cook bowls, zucchini spirals, riced cauliflower,
acai and smoothie bowls, cauliflower pizza crusts, handheld
burritos, and quesadillas, which are available in the frozen food
sections of leading national retail food and club stores across the
United States as well as on Tattooed Chef’s e-commerce site.
Understanding consumer lifestyle and food trends, a commitment to
innovation, and self-manufacturing allows Tattooed Chef to
continuously introduce new products. Tattooed Chef provides
approachable, great tasting and chef-created products to the
growing group of plant-based consumers as well as the mainstream
marketplace. For more information, please visit
www.tattooedchef.com. For more information, please
visit www.tattooedchef.com.
Follow us on
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and LinkedIn and Taste the Jams on Spotify.
Forward Looking Statements
This notice contains forward-looking statements
(including within the meaning of the Private Securities Litigation
Reform Act of 1995) concerning us and other matters. These
statements may discuss goals, intentions and expectations as to
future plans or events, based on current beliefs of management, as
well as assumptions made by, and information currently available
to, management. Forward-looking statements may be accompanied by
words such as “expect,” “estimates,” “will” or similar words,
phrases or expressions. These forward-looking statements are
subject to various risks and uncertainties, many of which are
outside our control. We caution readers not to place undue reliance
upon any forward-looking statements.
INVESTORS
Stephanie
Dieckmann, CFOTattooed Chef(562) 602-0822
Devin Sullivan, SVPThe Equity Group Inc.(212)
836-9608dsullivan@equityny.com
Karin Daly, VPThe Equity Group Inc.(212) 836-9623
kdaly@equityny.com
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