Celsius Holdings Inc (CELH)

[Greenaccountingbean]

n addition, as more fully described in the linked PDF, in connection with the preparation of its 2021, the Company determined that the calculation and expense of non-cash share-based compensation, related to grants of stock options and restricted stock units awarded to certain former employees and retired directors were materially understated for the three and six month periods ended June 30, 2021 and three and nine month periods ended September 30, 2021 and did not comply with U.S. GAAP. In order to correct previously reported non-cash share-based compensation during these periods, the Company is recognizing additional non-cash share-based compensation expense of approximately $3,180,000 for the three month period ended June 30, 2021 and approximately $12,116,000 for the three month period ended September 30, 2021. The recognition of additional non-cash share-based compensation expense does not impact the Company's cash, revenue, other aspects of its operations or its business fundamentals.

The Company's management has concluded, however, that as a result of the above identified errors, a material weakness exists in the Company's internal controls over financial reporting related to the misapplication of U.S. GAAP in the Company's evaluation of modifications to share based payment arrangements and that the Company's disclosure controls and procedures were not effective as of December 31, 2021. The Company has taken remedial actions in this regard.