According to a U.S. Securities and Exchange Commission (SEC) filing, the company’s financial statements for the year ending Dec. 31, 2021 are not dependable. This has it expecting to restate financials from that year and interim periods.
Ryvyl notes that when these restatements occur, it will likely result in less revenue for the company. Also expected are an increase in net losses, a decrease in total assets and a drop in total stockholders’ equity.
Ryvyl points out that it is now reevaluating its internal control over financial reporting. The company has identified one or more “material weaknesses.” These include a weakness in accounting when it comes to “complex business transactions.”
What This Means for RVYL stock
With Ryvyl planning to restate financials and expecting worse results than previously expected, it makes sense that investors wouldn’t be happy with RVYL stock. However, other news has shifted the stock to gains instead of the losses it saw earlier this morning.
Ryvyl has announced plans to investigate alleged illegal short-selling of its shares. Several companies have announced similar plans and they have all seen the prices of their stocks increase on the news.
As of this writing, RVYL stock is up 1.2% as of Monday morning.
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.