Kush Supply Co. (fka KSHB)

[hobowilly]

As previously disclosed by KushCo Holdings, Inc. (the “Company”) in its Current Report on Form 8-K, as filed on April 9, 2019 (the “Prior 8-K”), the Audit Committee of the Company’s Board of Directors has determined that it is necessary to restate the Company’s audited consolidated financial statements as of and for the fiscal years ended August 31, 2018 and 2017 and unaudited condensed consolidated interim financial statements as of and for the fiscal periods ended May 31, 2017, November 30, 2017, February 28, 2018, May 31, 2018 and November 30, 2018 (such restatements, the “Restatements”). The Restatements are being made as a result of inadvertent errors in the accounting for certain shared-settled contingent consideration (“Contingent Consideration”) relating to the Company’s acquisition of CMP Wellness in May 2017, Summit Innovations in May 2018, and Hybrid Creative in July 2018. In connection with those acquisitions, Contingent Consideration relating to the respective earnout arrangements were recorded as equity. Upon further evaluation, the Company determined that the Contingent Consideration should have been accounted for as liabilities with changes in the fair value recorded in the Company’s consolidated statements of operations.

How stupid can you get? A ECO101 student would know better. Somebody or some firm/auditor needs to be fired over this. It really questions the oversight and quality control systems in place.

Quality control does not apply exclusively to the production line on the manufacturing floor.

Cheeses, what a mess.