After markets closed on a Friday PowerFleet Inc. (PWFL), a wireless Internet-of-Things (IoT) asset management solution, revealed it had misstated its financials for three consecutive years. At issue, according to the Audit Committee, is the redemption premium associated with the PowerFleet’s Series A convertible preferred stock.

The misstatements were discovered as the company was working to complete its 2023 financials.

The after-hours filing indicates PowerFleet understated its net loss attributable to common shareholders by:

—$5 million, or 33% in FY 2021
—$6 million, or 50% in FY 2022
—$5 million, or 105% in the nine months ended September 30, 2023

The eventual restatements will also include increases in “convertible redeemable preferred stock” by approximately $11 million, $16 million and $21 in the same periods.

Notably, PowerFleet warned of other misstatements and that more restatements are on the horizon:

“In addition, the Company expects to further revise the financial statements for the Non-Reliance Periods to make other unrelated and immaterial revisions.”

On March 15th, PowerFleet warned it would not file its annual report on time because it needed more time to complete its financial statements. The company said it expected to file the report within fifteen days.

The warning made no mention of an Audit Committee investigation nor did it warn it would restate years of financials.

Twenty-one days have passed since the warning and PowerFleet has still not filed its annual report.

PowerFleet did not immediately respond when DuDil asked when it would file its annual report. Nor did the company explain why it did not provide investors detail regarding future revisions or whether they would impact net income, free cash flow, or reported revenue.