It has taken Everi Holdings Inc. (EVRI), a gaming content and machine operator, three years to figure out how to account for the fees it pays its partners. At issue are the company’s placement fee agreements, or the money Everi pays for the placement of gaming terminals in gaming establishments.

Instead of classifying the payments as operating outflows, Everi previously classified them as capital expenditures.

Without explanation, Everi now classifies the fees as part of operations.

The sudden change resulted in two years of misstated cash flow statements. In its latest annual report, Everi restated its cash flows, revealing it:

—Overstated Operating Cash Flow $31.4 million, or 8.7% in 2021
—Overstated Operating Cash Flow $547,000, or 0.2% in 2022

Everi will not correct inaccurate prior filings.

The company says its internal control over financial reporting is effective.