Business
The Sustainable Green Team, LTD. (SGTM) Amends its Period Ended October 1, 2022 Quarterly Report, Resulting in a $6 Million Adjustment
The Sustainable Green Team, LTD. (SGTM) Amends its Period Ended October 1, 2022 Quarterly Report, Resulting in a $6 Million Adjustment.
About this update from Sustainable Green Team, Ltd.
[{"type":"text","content":"\n Orlando, FL, Jan. 19, 2023 (GLOBE NEWSWIRE) -- The Sustainable Green Team, LTD. (OTCQX: SGTM) (“SGTM” or the “Company”), an industry-leading wholesale manufacturer and supplier of consumer and industrial wood-based mulch, soil, and lumber products nationwide, announced today that it amended its quarterly report for the period ended October 1, 2022. The restatement includes amended condensed consolidated financial statements for the three and nine months ended October 1, 2022, along with their accompanying footnotes. SGTM has recently partnered with VRM Biologik Group, embarking on producing a new soil technology in conjunction with that partnership. The Company will produce a new product line, HumiSoil®, which has resulted in a change of accounting estimate related to SGTM’s inventory valuation. When the cycle counts were completed for the period ended October 1, 2022, certain stock was excluded from the inventory valuation due to system limitations on how to capture and value that inventory. The Company, therefore, took a charge to Cost of Revenue while researching the root cause of the excluded inventory. The Company has since identified the source of the deficiency and established procedures to properly account for and value the inventory associated with the production of HumiSoil®. SGTM has valued its excluded inventory according to the updated procedures, resulting in an adjustment to Inventory and Cost of Revenue of approximately $6 million, increasing the Company’s total assets from $75,606,058 to $81,666,905. Furthermore, the adjustment increased the Company’s total gross profit from $(1,804,949) to $4,255,898 and its net income from $(4,629,242) to $1,229,626 for the three months ended October 1, 2022. For the nine months ended October 1, 2022, the adjustment increased the Company’s total gross profit from $(492,645) to $5,568,202 and a net income from $(4,869,563) to $989,305. These financial statement changes have been disclosed within the uploaded Amended Financial Statements and Notes filed with OTCMarkets. About Sustainable Green Team, Ltd. (SGTM)The Sustainable Green Team Ltd. (“SGTM” or the “Company”), is a wholesale manufacturer and supplier of wood-based mulch, soil, and lumber products, selling directly to mass merchandisers, ...