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NWTN Inc. Financial Report: Dismissal of Accounting Firm & Major Restatements January 2025

$NWTN
Form 6-K
Filed on: 2025-01-14
Source
NWTN Inc. Financial Report: Dismissal of Accounting Firm & Major Restatements January 2025

Here’s a summary of the key information extracted from the financial report filed by NWTN Inc. on Form 6-K:

Company Overview

  • Name: NWTN Inc.
  • Reporting Period: January 2025.
  • Commission File Number: 001-41559.
  • Address: Dubai Digital Park, Dubai Silicon Oasis, Dubai, UAE.

Key Events

  • Dismissal of Independent Accounting Firm:
  • On January 9, 2025, NWTN Inc. dismissed Marcum Asia CPAs LLP as its independent registered public accounting firm.
  • Marcum Asia's audit reports for the fiscal years ended December 31, 2022, and 2021 did not contain adverse opinions or disclaimers, but errors were later identified in those financial statements.
  • Restatement of Financial Statements:
  • The audited financial statements for the year ended December 31, 2022, and the unaudited financial statements for the six months ended June 30, 2023, should no longer be relied upon due to errors related to shareholders' borrowings linked to agreements with Al Ataa Investment LLC.
  • Material Weaknesses in Internal Controls:
  • The company identified material weaknesses in its internal controls over financial reporting, specifically:
    • Insufficient full-time accounting personnel knowledgeable in U.S. GAAP.
    • Ineffective management review during the accounting close process.
  • The errors were largely attributed to weak controls at the time the Al Ataa Agreements became effective.

New Accounting Firm Appointment

  • The audit committee appointed AssentSure PAC as the new independent registered public accounting firm, subject to standard client acceptance procedures.

Future Actions

  • The company is currently implementing a remediation plan to address identified deficiencies in its internal controls. A legal review regarding the shareholders' borrowings is still underway.

Additional Information

  • The company has provided Marcum Asia with a summary of disclosures regarding its dismissal and has requested a letter from Marcum Asia confirming their agreement with the statements made in the report.

Conclusion

The report outlines significant changes in NWTN Inc.'s financial oversight, including the dismissal of its accounting firm, the need to restate prior financial statements due to errors, and ongoing efforts to strengthen internal controls.