CLEVELAND, Ohio - Range Impact, Inc. (OTCQB:RNGE), a heavy construction company, announced on Tuesday that it is revising its financial results for the first quarter ended March 31, 2024, due to an accounting error. The company's Audit Committee, with its independent registered public accounting firm Meaden & Moore LLP, determined that financial statements for the period should not be relied upon and require restatement.
The error was identified on June 19, 2024, when the company's internal accounting staff discovered an invoice from March was incorrectly recorded in April's books. This misstep resulted in an understatement of expenses and an overstatement of net income for the first quarter. The Audit Committee concluded on August 7, 2024, that due to the significance of the error, a restatement was necessary.
Following the discovery, Range Impact filed an amended Form 10-Q/A on August 8, 2024, which included restated financial statements, an updated management's discussion and analysis, and disclosures about material weaknesses in financial reporting controls. The restatement increased the company's net loss for the quarter from $751,149 to $1,213,840 and liabilities as of March 31, from $11,993,151 to $12,455,842.
The company's CEO, Michael Cavanaugh, signed off on the SEC filing on October 15, 2024, confirming the amendments. This news may be of particular interest to investors and stakeholders of Range Impact, Inc., as it reflects adjustments to the company's previously reported financial health and internal control over financial reporting. The information is based on a press release statement filed with the SEC.
InvestingPro Insights
Range Impact's recent financial restatement underscores the importance of accurate financial reporting and robust internal controls. Despite this setback, InvestingPro data reveals some interesting aspects of the company's financial position and market performance.
As of the latest data, Range Impact has a market capitalization of $27.44 million USD. The company's revenue for the last twelve months as of Q2 2024 stood at $18.59 million USD, with a remarkable revenue growth of 65.92% over the same period. This growth suggests that despite the accounting error, the company has been expanding its operations significantly.
InvestingPro Tips highlight that Range Impact has been profitable over the last twelve months, which is a positive sign given the recent restatement of its Q1 2024 results. Additionally, the stock has shown a significant return over the last week, with a 1-week price total return of 13.86% as of the latest data. This could indicate that investors are looking beyond the accounting issue and focusing on the company's potential.
However, it's worth noting that Range Impact's stock price has fallen significantly over the last three months, with a 3-month price total return of -25.14%. This decline might be partly attributed to the announcement of the financial restatement.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and insights. There are 11 more InvestingPro Tips available for Range Impact, providing a deeper understanding of the company's financial health and market position.
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