Mondee Holdings (MOND), which runs a marketplace connecting travel agents and businesses, revealed two issues that resulted in the misstatement of revenue and sales & marketing expenses for the three months ended March 31, 2022. The company blamed the error on the arrangements it has and the commissions paid to travel agents.

Mondee also revealed a second error resulting in misstatements in the period:

“Additionally, the Company identified a classification error for the fees charged by a credit card processing Company, that too resulted in a misstatement of reported net revenues and sales and marketing expense.”

Mondee revised sales and other line items in its latest quarterly report, which resulted in:

—Revenue being understated by $1.4 million, or 3.5%
—Marketing expense being understated by $700k, or 3.1%
—Sales and other expense understated by $664k, or 19%

Though potentially an Edgar timestamp issue, it appears Mondee filed the latest quarterly report containing the revisions nearly 9-minutes prior to submitting a filing disclosing it would not be able to file the quarterly report on time.