POWERFLEET ANNOUNCES RESTATEMENT OF ACCOUNTING TREATMENT OF LEGACY CONVERTIBLE PREFERRED STOCK INSTRUMENT, WHICH HAS NO ADVERSE IMPACT ON PREVIOUSLY REPORTED REVENUE, CASH FLOW OR ADJUSTED EBITDA

About this update from Powerfleet, Inc.

[{"type":"text","content":"WOODCLIFF LAKE, N.J., April 5, 2024 /PRNewswire/ -- Powerfleet, Inc. (Nasdaq: PWFL) today announced its intention to adjust its historical accounting treatment for the redemption premium associated with its Series A convertible preferred stock, which was fully redeemed in connection with the closing of the Company's business combination with MiX Telematics Limited on April 2, 2024, due to a technical accounting issue. This will result in the restatement of its financial statements for the fiscal years ended December 31, 2021 and 2022, and for each of the interim periods during the 2022 and 2023 fiscal years. \n\n \n \n \n \n \n \n\n \nThe technical accounting issue was identified during the final stages of the preparation for filing of the Company's financial statements for the fiscal year ended December 31, 2023 and has been determined by the Company to require adjustment to comply with Generally Accepted Accounting Principles. In connection with the restatement, the Company expects to voluntarily revise the financial statements for the same periods to make other unrelated and immaterial revisions. This action follows a comprehensive review by the Company's management and audit committee.\nThe company is working diligently to finalize the restatement process. The company is committed to completing this process as swiftly as reasonably possible and is well positioned to file the 2023 Form 10-K with the Securities and Exchange Commission in April 2024. \nKey points of the restatement:\nAdjustment details: The change in the accounting treatment of the preferred stock results in a non-cash charge in arriving at \"Net loss attributable to common stockholders,\" an increase in \"Convertible redeemable preferred stock\" and a reduction in \"Additional paid-in capital.\"No anticipated adverse impact on previous statements of operations, cash flows and adjusted EBITDA: The change in the accounting treatment of the preferred stock is not expected to adversely impact previously reported revenues, net loss, cash flows or adjusted EBITDA for the fiscal years ended December 31, 2021, 2022 and 2023 and for each of the interim periods during the 2022 and 2023 fiscal years.As a result of the Restatement, the Company was late in the filing of its Annual Report on Form 10-K for the fiscal year ended December 31, 2023 (the \"2023 Form 10-K\") and ...

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