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GitLab Overstates Cash Position by $50 Million, or More Than Twenty Percent
Software firm also says it mistakenly issued shares to certain investors at a 15% discount.
September 7, 2022
GitLab Inc., a developer of software for software development, misstated its financials for the six months ended July 31, 2021. The disclosure was made in the company’s latest quarter filing which revealed $50 million of short-term investments were incorrectly reflected within cash and cash equivalents during the period.
The $50 million error is the equivalent of 22.1% of the cash and equivalents on GitLab’s cash flow statement in the six months ended July 31, 2021. The company says that’s not material and will not restate prior period financials.
Separately, in what it calls an administrative error on May 31, 2022, GitLab privately placed 2,055 shares with several foreign participants at a price of $33.05 per share, which is a 15% discount to where stock closed that day.
The quarter after the accounting error was made in 2021 GitLab disclosed a control deficiency related to the way it accounts for and discloses non-routine transactions.
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