- DeFi Technologies (OTC: DEFTF) refiles Q2 and Q3 2024 interim financial statements due to accounting amendments.
- The restatement involves a Discount for Lack of Marketability (DLOM) impacting net losses significantly in both quarters.
- The company's cash position remains unaffected by these non-cash adjustments.
DeFi Technologies Inc. (OTC: DEFTF) has refiled its interim financial statements for the second and third quarters of 2024, following amendments in its accounting practices. The adjustments focus on applying a Discount for Lack of Marketability (DLOM) to the company's equity investments in digital assets and reclassifying these assets as non-current. This change resulted in significant impacts on the company's net loss figures.
In Q2 2024, DeFi Technologies applied a DLOM of $98.66 million, reclassified $122.79 million of equity investments to non-current assets, and increased the net loss by $98.66 million. For Q3 2024, an additional DLOM of $3.89 million was applied, bringing the total to $102.55 million, with $155.05 million reclassified to non-current assets and a net loss increase of $3.89 million for the quarter, totaling $102.55 million for the nine-month period.
The company emphasizes these are non-cash changes and do not impact its ongoing cash position. However, previously issued financial statements and communications for these periods should no longer be relied upon due to identified material weaknesses in internal controls.
