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Tungray Technologies Inc. Financial Report: Major Restatement Revealed!

$TRSG
Form 6-K
Filed on: 2024-12-31
Source
Tungray Technologies Inc. Financial Report: Major Restatement Revealed!

Key Information and Insights from the Financial Report (Form 6-K)

  1. Company Overview:
  • Name: Tungray Technologies Inc.
  • Address: #02-01, 31 Mandai Estate, Innovation Place Tower 4, Singapore 729933.
  • Contact: +65 6636 9820.
  1. Filing Details:
  • Filing Type: Form 6-K.
  • Commission File Number: 001-41998.
  • Period Covered: For the month of December 2024.
  1. Restatement of Financial Statements:
  • The Board of Directors determined that previously issued financial statements for the years ended December 31, 2023, 2022, and 2021, are no longer reliable.
  • This includes the company's Annual Report on Form 20-F filed on April 26, 2024.
  1. Reasons for Restatement:
  • Misstatements Identified:
    • Tax Issues: Incorrect recording of income tax expense, taxes payable, and retained earnings due to improper identification of non-deductible expenses.
    • Lease Accounting: Failure to account for a purchase option in a finance lease and incorrect useful life for asset amortization.
  • The impact of these misstatements affects:
    • “Taxes payable”, “Retained earnings”, “Accumulated other comprehensive loss”, and various income statement items like “Net income attributable to Tungray Technologies Inc.” for the affected years.
  1. Next Steps:
  • Tungray Technologies Inc. is preparing to file an amendment to the Form 20-F (the "Restatement 20-F") to address these misstatements.
  • The company is working diligently to complete the restated financial statements as soon as possible.
  1. Consultation with Auditors:
  • The matters concerning the financial statements have been discussed with Marcum Asia CPAs LLP, the company’s independent registered public accounting firm.
  1. Forward-Looking Statements:
  • The report contains forward-looking statements which are subject to risks and uncertainties, including potential further discoveries of misstatements or audit findings.

Implications:

  • This situation raises significant concerns regarding the accuracy and reliability of Tungray Technologies' past financial reporting, which may impact investor confidence and stock performance.
  • The need for a restatement could result in regulatory scrutiny and possible implications for future filings and relationships with auditors.
  • Stakeholders should closely monitor the upcoming Restatement 20-F filing for updated financial information and implications for the company's financial health.