Since emerging from bankruptcy less than a year ago Garrett Motion Inc. (GTX), a maker of automobile turbochargers, has yet to correctly calculate earnings per share (EPS). In its latest 10-K, Garrett revealed management identified a material error in the calculation of earnings per share for the three and six months ended June 30, 2021 and for the three and nine months ended September 30, 2021 due to:

“...a deficiency in the design and implementation of effective controls relating to involvement of subject matter experts in management's review of complex and bespoke transactions.”

The company burnt $382 million in 2021 but says it’s focused on fixing its control deficiencies, in part, by “evaluating the need to involve” experts in evaluating complex contracts.

The company’s auditor, Deloitte’s office in Switzerland, expressed an adverse opinion on Garrett’s internal controls over financial reporting (ICFR) due to the material weakness that resulted in incorrect EPS calculations. Still, the auditor gave a thumbs up to Garrett’s financial statements and did not cite EPS calculation as a critical audit matter.

The error— Garrett simply didn’t include certain preferred shares in the denominator— resulted in a significant EPS overstatement the entire time the company relisted on the Nasdaq post-bankruptcy. In the 9-months ending September 30, 2021, Garrett reported basic EPS of $4.34, or 172% more than the corrected full year tally of $1.56 per basic share.

One day after reporting the inflated 9-month EPS figure, Garrett— a Honeywell (HON) spinoff prior to bankruptcy— announced Honeywell CEO Darius Adamczyk was quitting the Garrett Board of Directors. It was nearly 5-months later that Garrett revealed the miscalculation in an 8-K filed February 14, 2022— the same day the company’s annual report was filed. In the 8-K, CFO Sean Deason stated the error was discovered February 8, 2022, six days before the annual report was filed that included the corrected EPS figures.