Tattooed Chef To Correct Certain Expenses in Prior Reporting Periods To Address Technical Accounting Issues
October 12 2022 - 5:26PM
Tattooed Chef, Inc. (Nasdaq: TTCF) (“Tattooed
Chef” or the “Company”), a leader in plant-based foods, announced
today that it will restate its quarterly and annual financial
statements for 2021, and quarterly financial statements for the
first and second quarterly periods of 2022.
On October 6, 2022 the Company received a
written notice from its former independent registered public
accounting firm, BDO USA, LLP, that the Company’s annual
consolidated financial statements for the year ended December 31,
2021, and accompanying audit report, and unaudited interim
condensed consolidated financial statements for the quarters ended
March 31, 2021, June 30, 2021 and September 30, 2021, each as
previously filed with the Securities and Exchange Commission
(“SEC”), were materially misstated and should no longer be relied
upon and should be restated, because the Company incorrectly
recorded expenses related to a multi-vendor mailer program with a
large customer as operating expenses rather than reduction of
revenue, and expenses for advertising placement by a marketing
services firm on a straight-line basis over the life of the
contract rather than when the services were actually rendered. The
corrections do not affect the Company’s cash position. Moreover,
the Company expects that the restatements will have no effect on
its current and future operations.
For the reasons set forth above, the Board,
after consultation with the Audit Committee, has also determined
that the Company’s unaudited interim condensed financial statements
for the quarters ended March 31, 2022 and June 30, 2022 should no
longer be relied upon.
The Company intends to restate the audited and
unaudited consolidated financial statements for the periods
identified above. The Company expects to file the restated
consolidated financial statements with the SEC on or before the
filing of the Company’s Report on Form 10-Q for the quarterly
period ended September 30, 2022.
The restatements are expected to result in the
following adjustments to the periods identified above:
- A decrease in
net revenue and gross profit between approximately $0 million and
$5 million, depending on the period.
- Operating
expenses, ranging from an expected decline of approximately $4
million to an expected increase of approximately $1 million,
depending on the period; and net loss, ranging from an expected
decrease of approximately $1 million to an expected increase of
approximately $4 million, depending on the period.
- For the six
months ended June 30, 2022, net revenue is expected to decline by
approximately $5 million to approximately $125 million, primarily
related to the above referenced recording of expenses related to a
multi-vendor mailer program, a $5 million decrease in gross profit,
a $1 million decrease in operating expenses, and a $4 million
increase in net loss.
At this time, the Company has not fully
completed its review and the expected financial impact of the
restatements described above is preliminary and subject to change.
The Company cannot predict whether additional periods beyond those
referenced above will be affected and the final outcome or timing
of the Company’s filing of restated financial statements for the
affected annual and quarterly periods.
The Company is filing today with the SEC a
Form 8-K regarding the restatements that will include associated
disclosures and the estimated impacts for each of the periods
subject to restatement, 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, wood-fired plant-based pizzas, handheld
burritos, quesadillas, and Mexican entrees, 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.
Follow us on social: Facebook, Instagram,
TikTok, Twitter, and LinkedIn and Taste the Jams on Spotify.
Forward Looking StatementsThis
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
“will” “expect,” “anticipate,” “accretive,” “opportunity,”
“expand,” “potential” 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 |
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Stephanie Dieckmann, CFOTattooed Chef(562) 602-0822 |
Devin Sullivan, SVPThe Equity Group Inc.(212)
836-9608dsullivan@equityny.com |
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David Shayne, AnalystThe Equity Group Inc.(212) 836-9628
dshayne@equityny.com |
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