Business
Waldencast plc Announces its Intent to Delay the Filing of its Annual Report and Announces the Consummation of its Previously Announced Acquisition in Southeast Asia
NEW YORK, April 25, 2023 (GLOBE NEWSWIRE) -- Waldencast plc (NASDAQ: WALD) (“Waldencast” or the “Company”), a global multi-brand beauty and wellness platform,
About this update from Waldencast Plc
[{"type":"text","content":"NEW YORK, April 25, 2023 (GLOBE NEWSWIRE) -- Waldencast plc (NASDAQ: WALD) (“Waldencast” or the “Company”), a global multi-brand beauty and wellness platform, today announced that it expects to file a Form 12b-25 with the U.S. Securities and Exchange Commission (the “SEC”) on or about May 2, 2023, providing the Company a 15-day extension to file its annual report for the fiscal year ended December 31, 2022 on Form 20-F (the “Annual Report”). Accordingly, the Company is postponing its fiscal year 2022 and fourth quarter earnings call (the “Earnings Call”). The Company is delaying its Annual Report filing because of an ongoing review of the Company’s year-end 2022 financial statements and related issues. The Company is conducting an analysis pertaining to, among other things, certain accounting issues in connection with the sale of certain Obagi products for the Vietnam market. The Company’s Audit Committee is conducting an independent review, with the assistance of outside counsel, of the circumstances surrounding these issues to determine, among other things, whether certain accounting adjustments are necessary. This review arose from concerns regarding the lapse in renewing the importation licenses in Vietnam, which are still pending, and related effects, triggering, among other things, the need for further analysis under the ASC Topic 606 with respect to the collectability of the relevant revenue during that period. In addition, the Company is announcing that it consummated, in March 2023, its previously announced acquisition of a 60% controlling interest in an entity comprising the business of its Southeast Asia distributor (the “joint venture”). In connection with this transaction, a majority of the outstanding accounts receivable owed to the Company by its Southeast Asia distributor as of December 31, 2022, were extinguished in exchange for the 60% controlling interest in the joint venture, into which the Southeast Asia distributor contributed its business, including existing inventory on hand. The residual accounts receivable balance remains owed to the Company by the former owner of the Southeast Asia distributor (the “seller”), who received the remaining 40% ownership interest in the joint venture, which obligation is supported by the Company’s right to receive additional equity in the joint venture and contractual right...