In addition to cutting guidance and impairing the value of its live events unit Townsquare Media (TSQ), a digital media and marketing solutions company in small and medium-sized businesses, acknowledged revenue recognition misstatements.

The company refused to quantify the error.

Without additional explanation, Townsquare:

“...recorded an immaterial adjustment to recognize revenue and an equal amount of direct operating expense related to certain barter transactions that should have been recorded during the previous quarterly periods in 2023.”

Townsquare says the adjustment did not have any impact on operating loss or net loss.

Townsquare did not immediately respond when DuDil requested the company quantify the adjustment and explain how it happened.

Townsquare’s management says its internal controls over financial reporting are effective.