Solésence, Inc. (SLSN) announced that its previously issued financial statements for multiple periods should no longer be relied upon due to significant accounting errors. The company identified errors in its historical accounting for labor and overhead costs in inventory, which resulted in overstated inventories and misstated cost of revenue.
Key Details
- Accounting Error: The company's historical process for allocating labor and overhead to inventory did not comply with ASC 330, leading to inaccuracies in reported gross profit, net income, and stockholders' equity.
- Affected Periods: The restatement will impact the annual reports for the years ended December 31, 2023, 2024, and 2025, as well as quarterly reports from March 31, 2024, through March 31, 2026.
- Determination: The decision of non-reliance was made on August 17, 2026, by the Audit Committee, Board of Directors, and Executive Officers. The company plans to file amended financial reports.